We know 2024 hasn’t been easy for the construction industry. From rising costs to supply chain delays and workforce shortages, it feels like the challenges just kept coming. And with new technologies like AI adding to the mix, it was a lot to manage. However, those who adapted these changes saw better efficiency and faster project completion. Now, as we step into 2025, there's a renewed sense of hope. The industry is gearing up for a major comeback. Yes, that’s right!
Experts are predicting substantial growth opportunities—but success will depend on how prepared your teams are for what’s ahead. Whether you’re a contractor, project manager, or a construction firm owner, with the right tools and a solid approach, you can make 2025 your most productive year yet. To help you chart what’s next, we’ve gathered insights from industry experts who know what it takes to succeed in today’s market.
So, let’s dive into what’s coming your way and how you can stay ahead of the curve.
Growth across Construction Sectors
Even though 2024 had its challenges, 2025 is set to be a big year for the construction industry. Residential construction is picking up again, thanks to the lower interest rates. Now people are returning to the housing market, and with that comes demand for new homes, bigger societies, and better roads.
Commercial construction is also expanding, particularly with the rise of logistics facilities like warehouses and distribution centers. Urban development is on the rise as well, with more office buildings and infrastructure projects, creating big opportunities for contractors and developers.
Referring to the Global Construction Industry Databook 2024 report, Isaac Sacolick, President of StarCIO,said, “Several growth factors, including lower interest rates, a surge in housing demand fueling residential construction, and the growth of logistics facilities is one factor driving commercial construction.”
However, this growth comes with its own hurdles, like labor shortages and evolving technologies.
Tackling Workforce Challenges
We know that finding skilled workers is harder than ever. Experienced hands are retiring, and younger folks aren’t jumping into construction as much as we need them to. According to our own State of Construction Survey (Q3 2024), at least 82% of industry professionals are worried about losing specialized knowledge in the next few years.
Download our State of Construction 2025 report here.
The result of this skilled labor shortage? Teams stretched too thin, longer project timelines, and more pressure on everyone to pick up the slack. But there’s hope. Despite these challenges, 97% of companies are still moderately confident in their management abilities, the report said. Many construction firm owners are now taking proactive steps to address this issue, including better pay, recruitment drives, and training programs.
While these efforts are essential, they alone won’t solve everything. To truly keep up, you need to get smarter about how you work.
Technology lightening the load
Here’s where technology can make a difference. With the right tools, your teams can streamline tasks, increase productivity, and get more done with fewer hands. Solutions like Quickbase play a key role in achieving this, offering simple solutions to make work easier. For instance, with Quickbase AI, you can bring ideas to life fast. With its Smart Builder, you can easily create custom apps, reports, and workflows, automating crucial tasks in just a few clicks.
Think of it this way: automation can handle the repetitive tasks, allowing your team to focus on higher-value work. Plus, using digital tools helps capture the expertise of retiring workers, so you’re not losing valuable knowledge.
Evan Kirstel, a technology influencer, predicts, “Looking ahead to 2025, AI-driven automation can really take off in construction.” Highlighting the workforce crunch issue, Evan added: “Automation could start filling those gaps, but it’ll also mean a big push toward upskilling the workforce in particular enabling and training the next generation of workers to replace the wave of retirement that's happening over the next few years.”
It’s clear that to stay ahead, you need to invest in both your people and the technology that supports them.
Efficiency over everything
In construction, time is money, and efficiency is everything. Aarni Heiskanen, a construction innovation expert, said, “Residential contractors will try to industrialize their processes by using more prefab, adopting lean construction methods, and streamlining data flow across the value chain.”
So, what does that mean for you? Imagine completing a residential project three weeks ahead of schedule by using prefab methods. You save time, cut labor costs, and still deliver high-quality results.
Meanwhile, digital tools like Quickbase’s Pro Apps are helping folks in construction track hours, resources, and workflows more efficiently. With tools that capture everything in one place, your teams can spend less time doing the gray work and focus on the job at hand. Plus, this centralization of project data allows you to make decisions faster and better, ensuring your team stays on track and productive.
Isaac Sacolick sums it up: “In 2025, digital trailblazing construction companies will meet the labor shortage challenges by advancing their dynamic work management solutions, centralizing data from all active construction projects, and advancing AI/ML capabilities to drive more efficient and safer working environments.”
Faster Approvals, Fewer Delays
Nothing slows down a project like waiting for approvals. However, Building Information Modeling (BIM) is changing the game, especially in tech-savvy regions like the UK, Singapore, and Nordic countries. Aarni Heiskanen highlights this shift: “Digital permissions and approvals using Building Information Modeling (BIM) will start or progress further in leading BIM regions. This will shorten the lengthy time it takes to get planning permission, helping owners and developers move faster with their projects.”
For project managers, faster approvals mean less waiting around and more time driving projects forward.
Mergers and Acquisitions: The Big Shift in Construction
In 2025 and beyond, we’ll see a big shift as larger contractors start acquiring smaller ones. This trend will lead to the rise of mega-firms with the power to dominate the market. According to Bob Salaj, construction industry expert at Quickbase, “This consolidation will likely be driven by the need for greater efficiency, access to a broader customer base, and the ability to leverage advanced technologies.”
For smaller businesses, joining forces with bigger players might be the way to stay competitive in an ever-evolving market.
What’s Next? 2025 and beyond
If there’s one lesson from 2024, it’s that resilience and adaptability can get you through just about anything. So, what can we expect in 2025? Lots of big opportunities for the construction sector. Yes, there are challenges, but the chances for growth are even greater.
To stay ahead, focus on adaptability, embracing AI-powered tools, and increasing efficiency. If you’re in a leadership role, you have the power to drive change and lead your team to success.
Now’s the time to invest in your team, your processes, and your future. The industry is ready for transformation, and with the right tools and mindset, 2025 could be a defining year for your company.
