Construction Industry Trends for 2025
The construction industry enters 2025 with optimism about the economic outlook for the sector in the year ahead. However, ongoing struggles to fill both craft and leadership roles continue to present challenges for contractors and projects nationwide.
Here are some notable trends and statistics for the construction industry to consider as we kick off the new year.
The construction industry expects continued financial growth in 2025.
Overall, the construction industry is in a healthy and stable position economically. According to ABC’s Construction Confidence Index report for December 2024, almost 64 percent of contractors expect their sales to increase over the next six months, while less than 15 percent expect sales to decrease. Additionally, almost 57 percent expect to grow their staff over the same time frame, while less than 10 percent expect staff levels to drop.
The positive financial projections are corroborated by AGC’s 2025 Hiring and Business Outlook Survey, where respondents expect the available dollar value of projects to be a net positive in 15 out of 17 construction categories included in the survey.
Employment in the construction industry continues to rise…
The Bureau of Labor Statistics reported that in December 2024, more than 8.31 million people were employed in the construction industry. This makes it one of the largest industries in the United States by employment.
Outside of a pandemic-related dip in early 2020, construction employment has maintained a steady and consistent growth for more than a decade and has now surpassed the pre-recession employment peak.
…But not enough to account for the already-high shortage of skilled labor.
Although employment in construction continues to track upward, this growth is not commensurate with the workforce demands of the industry. ABC estimates the construction industry will need to hire around 454,000 new workers on top of normal hiring in 2025 to meet the demand.
Continuing a trend seen for several years, construction companies are still facing challenges in hiring additional personnel. 78 percent of companies report having difficulties hiring hourly craft workers, according to AGC.
Craft labor supply (mentioned by 59 percent of respondents) and worker quality (56 percent) are among the top three biggest concerns of contractors entering 2025, with both factors trailing rising direct labor costs (62 percent) as the top worry.
Hiring Issues Apply to Leadership Positions, Too.
The labor shortage and hiring challenges aren’t limited to hourly craft professionals. Companies are also facing challenges in filling vacant field leadership roles.
According to AGC’s 2024 Workforce Survey, 83 percent of companies report having trouble hiring superintendents, while 81 percent are struggling to hire project managers and supervisors, such as foremen. Developing the next generation of construction leadership will continue to be an area of focus as the older generation of current leaders retires or moves into other roles.
Construction is Embracing AI
Like many other industries, construction is exploring the potential applications of artificial intelligence and machine learning and implementing them into their projects and workflows.
44 percent of companies plan to increase their investment in AI in 2025 compared to the previous year, according to AGC’s 2025 Hiring and Business Outlook Survey. Of the technologies included in the survey, AI was the top-ranked area for increased investment.
Construction Training Simulators May Also See Increased Adoption
The ongoing investment and innovations in AI, as well as in virtual reality (VR) and augmented reality (AR) technology, may contribute to increased adoption of construction simulators as supplementary training tools.
According to the 2025 Operator Training Simulator Global Market Report, the overall operator simulation market is projected to grow from $14.37 billion in 2024 to $16.51 billion in 2025, with forecasts predicting market growth to $28.6 billion by 2029. Simulators are a natural fit for training heavy equipment operation, mobile and tower crane operation, and other construction crafts where safety or budget considerations may limit opportunities for hands-on performance. While training through simulation will not replace live practice, it can offer a low-risk and cost-effective means for additional preparation and development.
To help construction organizations navigate these trends and challenges in 2025 and beyond, the National Center for Construction Education and Research (NCCER) offers a variety of high-quality, expert-designed training, credentialing and workforce development solutions. Click here to learn more.