The construction industry is on the brink of a transformative period. As we approach 2025, demand is rising, but so are the challenges, budget constraints, supply chain disruptions, and labor shortages that continue to test construction firms. So, how can leaders navigate this moment of flux? What steps will help construction firms not just survive but thrive?
Based on insights from our recent survey of 411 construction leaders across the U.S. and the U.K., we’ve identified the critical questions every construction organization needs to address to stay ahead. Let’s dive in.
Download the State of Construction 2025 report here.
Is Your Project Over Budget Before You Even Break Ground?
Managing costs is always top of mind, but the financial challenges are tougher than ever. According to our research, 95% of construction leaders experienced unexpected cost increases in the past year, leading to projects exceeding their budgets. Preconstruction is a critical planning stage, but it often comes with big upfront costs that can strain budgets right from the start. Moving too many labor hours upstream to model and plan can strain cash flow. That’s why it’s important to strike the right balance.
As Bob Salaj, Customer Advisory Director at Quickbase, puts it: "Preconstruction and BIM are powerful for efficiency, but overloading the early stages can impact cash flow. Efficient planning with the right level of detail is critical."
Smarter Budgeting with Real-Time Data
The key to controlling costs lies in making sure you're collecting the right data and how you use that data. With a unified system, you can easily create accurate budget estimates—no more juggling multiple platforms. Tools that consolidate project data and provide real-time visibility allow you to anticipate issues and make informed decisions.
Marc Rahimzadeh, CEO of Diversakore, explains: "An estimating tool with built-in calculations helps our team identify cost savings early. If one part of the project runs over budget, we can show the total savings elsewhere."
Before you break ground, make sure you have the right tools to centralize your data and streamline your budgeting process. It’s not just about managing costs, it’s about optimizing them.
Is Technology a Solution or a Barrier?
The construction industry is increasingly tech-savvy, but adoption remains uneven. While 91% of firms still rely on paper-based processes, only 12% have fully automated systems. This creates inefficiencies that add up. The future lies in consolidating tools and maximizing their impact, not merely adding more software.
A Quickbase study on IT consolidation found that over 75% of organizations use more than 10 different software applications. That’s a lot of tools, and a lot of room for inefficiency. Instead of fixing problems, a cluttered tech stack often adds to them—forcing employees to manually bridge the gaps between disconnected systems and creating more unnecessary work.
When Conexon, a broadband network construction firm, transitioned from manual spreadsheets to Quickbase’s platform, the impact was profound. They reduced software expenses by over $100,000 and saved users an hour per day.
Sarah Griffin, Conexon’s Director of Construction Program Management, sums it up: "Without a unified platform, we’d be crushed. Quickbase ties everything together, eliminating silos and boosting productivity."
Are You Ready for the Gen Z Workforce?
Labor shortages remain one of the most pressing challenges in construction. Over 400,000 construction jobs were unfilled as of August 2023, and projections suggest the industry will need an additional 546,000 workers in 2024. With experienced workers retiring, the knowledge gap is widening.
But there’s hope on the horizon. A new generation, Gen Z, is eager to enter the field. In a recent Thumbtack survey, 93% of Gen Z college graduates and 80% of parents said learning a skilled trade could offer better economic security than a college degree. However, integrating this digitally native workforce requires a shift in mindset.
Bridging the Generational Divide
Gen Z expects technology to be part of the job. They’re not used to paper forms or manual data entry—they want tools that are intuitive, flexible, and mobile-friendly. Tim Douglas, General Manager of Construction at Quickbase, notes:
"Today’s graduates don’t want to drown in paperwork or juggle endless spreadsheets. They want to make a difference—and they need the right tools to do it."
At the same time, there’s an opportunity for cross-generational learning. Seasoned workers bring invaluable experience, while younger employees bring a fresh perspective on technology. Done right, upskilling can go both ways.
Evan Kirstel, a technology expert, sees this as a crucial moment: "Automation and AI can fill some gaps, but we need to invest in upskilling. Training the next generation is essential for the future of construction."
Can Your Business Adapt to 2025’s Challenges?
2025 brings its share of challenges, but also plenty of exciting opportunities to grow and innovate. The construction firms that adapt will be the ones driving the industry forward. So, what steps can you take to future-proof your business?
Key Strategies to Consider:
- Integrate Preconstruction with Execution: Audit your tools and identify data silos. Consolidate your data into a single, real-time hub. Standardize processes across teams to reduce miscommunication and improve forecasting. Quickbase helps you do just that by simplifying the critical preconstruction phases.
- Consolidate your tech stack: Reduce reliance on disjointed systems by adopting platforms that integrate multiple functions, like project tracking, budgeting, and workforce management.
- Reduce Gray Work with Automation: Automate repetitive tasks and focus on real-time visibility. Tools like Quickbase can bridge data gaps and streamline project management.
- Build a Flexible Workforce Strategy: Cross-train employees, innovative staffing solutions, and invest in upskilling. This will help you adapt to labor shortages and prepare for the future.
- Streamline Your Tech Stack: Avoid point solutions that create complexity. Invest in scalable, cloud-based platforms that consolidate functions and simplify management.
- Prioritize Cost-Effective Budgeting: Focus on tools and processes that deliver the most value. Regularly assess your budget to align resources with changing project priorities.
- Train your workforce: Ensure your team has the skills to make the most of new technologies. Upskilling initiatives can unlock the potential of AI and other digital tools.
- Appeal to Gen Z: Leverage their digital fluency by providing modern, intuitive tools they can use on mobile devices.
- Diversify hiring strategies: Expand your recruitment efforts to nontraditional sources, such as apprenticeship programs or vocational schools.
A younger, tech-savvy workforce, paired with tools like AI, is reshaping workflows and bridging the skills gap in exciting ways.
What Does the Future of Construction Look Like?
The construction industry is in the middle of a digital revolution. With AI-powered project management, real-time data tools, and a tech-savvy Gen Z workforce, companies must prepare for a future where technology drives success. But adapting isn’t just about tech—it’s about mindset. To thrive, construction firms need to build a culture of innovation, where teams feel empowered to experiment with new tools and workflows. Planning for long-term growth means balancing immediate needs with future goals, and investing in scalable, cloud-based solutions that grow with you. Finally, staying agile is crucial. Embrace change as a constant, leveraging technology to remain flexible and resilient against challenges. The future is all about going digital, but real success comes down to having the right people and processes in place.
As we step into 2025, construction leaders must think critically about their operations and the tools they use. Costs, technology, and labor may feel like big hurdles, but they’re challenges that can absolutely be tackled. At Quickbase, we believe the future of construction is flexible, connected, and empowered. With the right tools and strategies, you can stay ahead of the curve and build a stronger, smarter business.
Ready to transform your construction operations? Discover how Quickbase can help you navigate 2025 and beyond.
