Top 3 Construction Industry Trends to Watch for 2025

The construction industry is growing fast, with an anticipated $2.3 trillion on the horizon. But the sector is also in the midst of some tremendous transitions—ones companies must learn to navigate to remain competitive.

Let’s look at three key trends shaping the 2025 building landscape and what they mean for construction companies in the months ahead.

1. Workforce Demands

According to analysis from the Associated Builders and Contractors, the construction industry will need to bring in nearly 454,000 new workers to meet demand in 2025. This need is driven by two factors. First, an estimated 1.9 million construction workers left the industry in 2024, leaving gaps in the workforce. Second, both the commercial and residential sectors are now poised for increased demand, which will require more workers on top of the normal pace of hiring.

Firms must find new ways to combat this shortage in 2025. According to Deloitte, one of the best ways to do this is with automation and digital tools. Analysts put it this way:

“These tools can augment workforce productivity by helping workers focus on high-value tasks. They could also help attract younger workers to the industry while aiding the retention of older workers by reducing physical strain and enhancing safety.”

For example, digital collaboration spaces enable a younger generation to stay connected on-the-go, while digital workflows put many manual construction tasks on autopilot. These and other advancements help make the industry more appealing to candidates at a time when the number of open jobs has jumped nearly 60%—many of which remain unfilled.

Related read: Streamline your construction workflows

2. Hybrid Work

Companies across the country have pivoted to hybrid work models. And according to new data, construction is adopting this trend too. More than 90% say they’ll allow occasional or frequent remote work, compared to just 52% before the COVID-19 pandemic. In addition, 95% said technology is “very” or “critically” important in their decision to continue allowing remote work.

In other words: An industry typically considered in-person only is now embracing arrangements that allow employees to work from home some or all the time. Seven in ten construction teams surveyed say it saves time and money by decreasing travel to and from sites and 35% say it allows them to hire the best candidates.

So far, the transition has been made possible by virtual meeting apps and video walkthrough software. But to embrace hybrid work for the long-haul, firms must also work on simplifying workflows in 2025. Digital workflow software can simplify contractor onboarding, streamline approvals and, most importantly, ensure everyone stays on the same page no matter how, when or where they work.

3. Mobile Security Risks

While the move to hybrid work offers numerous benefits, it also comes with challenges. As construction teams become more distributed in 2025, communication and collaboration will become more difficult. To remain competitive, teams will become increasingly reliant on remote technology to manage projects, which can expose companies to cyber attacks.

For this reason, it’s imperative for construction companies to conduct due diligence when selecting new software and apps. The average team uses 60 to 80 apps, a number that makes it difficult to ensure they not only boost productivity but are also secure and compliant. This is especially true when it comes to file sharing software for designs, contracts and other sensitive documents—the average cost of a data breach has reached $4.88 million.

In other words: While mobile file sharing can be a game changer for construction teams, it also comes with risk. Decision makers must look beyond app capabilities to check for strong encryption, access controls and regulatory compliance support.

Related read: Mastering construction document management: a step-by-step guide

Looking Ahead

Based on the latest projections, 2025 promises to be a year of tremendous growth for the construction industry. But those opportunities come with new challenges. To stay ahead, firms must be ready to accommodate persistent workforce shortages, support hybrid work and manage security risks. These three trends are here to stay and will play a key role in which companies will survive and thrive.