5 min read

Construction leaders: What's in store for 2025

Industry experts weigh in with their trend predictions
Construction leaders: What's in store for 2025

From hiring growth to navigating political shifts, 2024 was a year that tested and strengthened the construction industry. As we look forward to 2025, it's a good time to pause and reflect on where the industry stands and where it's likely headed. 

For today's edition, we asked five construction industry experts to tell us their predictions for the year ahead. Here's what they had to say.

Answers have been edited for brevity and clarity.


A.K. Bennett, Principal, Benkari LLC, Detroit, Mich.

Three predictions for 2025:

A weakened regulatory environment will lead to an increase in workplace incidents, injuries and claims. 

The AI boom will continue to supercharge investments in data center, mission critical and semiconductor manufacturing facility construction. 

Prompt payment regulations will increase intensity across the country in states that have not yet passed such legislation.

A trend I hope continues in 2025:

I would like to see a continued lowering of federal interest rates to ease the cost of project financing and decrease the cost of doing business and accessing capital for small- and medium-sized businesses. The financial viability of small to midsize projects in our area is still finding headwinds due to interest rates and construction costs.

One trend I'd like to see end in 2025:

The pushback against supplier/contractor and workforce diversity and inclusion. This knee-jerk reactionary effort will stifle many smaller contractors and suppliers in the industry that gain significant and priceless experience and exposure through true self-performing participation on large and mega projects that otherwise are out of reach. The construction workforce is focused on improving its shortage of labor but will hamstring itself by not giving opportunities to groups and communities that have traditionally not been in the industry either in the field or the office.


Liz Carpenter Bayer, finance manager, BOLD Construction, Chapel Hill, N.C.

Three predictions for 2025:

Software changes for construction will continue at a fevered pace, especially accounts payable AI features.

More training will be necessary for accountants and field staff to address the changes. In addition, internal processes will have to ebb and flow to match all the changes.

QuickBooks will be on the way out and another accounting software will be on the way in. There is likely a several-year target for this transition as so many companies are using this platform. 

A trend I hope continues in 2025:

Software companies will continue to listen to end users, especially accountants. In 2024, I noticed much more responsiveness than I have in the past. This is important because end-users have traditionally been last on the radar for massive changes and they are the first to be negatively affected.

One trend I'd like to see end in 2025:

Software companies making changes that are more about looks and less about functionality. They are causing a lot of problems for smaller companies that cannot afford a platform of the caliber of NetSuite.


Michael Guckes, chief economist, ConstructConnect, Cincinnati, Oh.

Three predictions for 2025:

Total construction spending will rise 8.5% overall, with residential building increasing by 12% and non-residential building by 8%. 

Falling interest rates will reinvigorate nonresidential and housing market activity.

Fewer financial regulations under a Republican-controlled government will bring commercial real estate (CRE) developers and financiers back to the table as banking conditions restart CRE lending growth. 

A trend I hope continues in 2025:

The electrification of the economy will continue to drive significant demand for energy infrastructure projects to power artificial intelligence, data centers and electric vehicles.

One trend I'd like to see end in 2025:

Increasing uncertainty over the impact of proposed tariff and immigration policies of the incoming administration.


Rob Dietz, chief economist, National Association of Homebuilders, Washington, D.C.

Three predictions for 2025:

Single-family home building should post a small gain in 2025, driven by a persistent housing shortage and some improvement for housing affordability conditions. 

A risk of ongoing elevated mortgage interest rates due to concerns related to tariffs, a tightened construction labor market and a larger government deficit. Nonetheless, the election provided some optimism for builders who hope for lower regulatory burdens

Remodeling will continue to improve in 2025, as an aging housing stock provides a growing number of business opportunities. 

A trend I hope continues in 2025:

Gains for townhouse construction. Townhouse construction was up 6% in 2023 when the overall building market was down 6%. And it represented 18% of single-family construction in 2024. We think this submarket will continue to expand.

One trend I'd like to see end in 2025:

After large declines in 2024, multifamily construction will level off in 2025. An improved financing environment will allow for more deals to be accomplished, although there is some limited oversupply of apartments in some markets.


Jennifer Wilkerson, VP of innovation and advancement, National Center for Construction Education and Research, Alachua, Fla.

Three predictions for 2025:

The Toolbelt Generation's (Gen Z) interest in the skilled trades will continue to grow as we see more individuals and families realizing the opportunity these pathways offer for career growth and success, instead of or in conjunction with a college degree. According to the Home Builders Institute Fall 2024 Future of the Skilled Trades Report, 55% of Gen Zers are considering a skilled trade career (up 12% from last year), including 72% of those with a college degree. 

More construction programs in high schools. We are already seeing this — NCCER has more high schools starting construction programs through its new High School Builder Program. Generous organizations like DewaltBechtelCarharttProcore and Construction Angels are stepping up to provide funding for these opportunities. 

More women will enter the construction industry. With the release of NCCER’s Women in Construction: In Her Own Words guide and numerous other efforts across the industry, we are seeing a slight increase in the number of women in construction trades and expect that number to grow in 2025. 

A trend I hope continues in 2025:

Investment in training. We have recently seen more contractors starting in-house training programs or partnering with community colleges, associations, and other organizations to train their craft professionals. In addition, these same contractors are seeing the value and starting to get more involved with construction CTE programs in high schools. 

One trend I'd like to see end in 2025:

We have not observed negative trends in 2024. We recognize the positive growth the industry is experiencing and we look forward to opportunities in 2025 that will help craft professionals enhance their skills and, ultimately, improve lives through construction education. 


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The Level is written by Margot Lester and edited by Katie Parsons.