Construction Industry Predictions for 2025

The new year ushered in some chilling winter weather, and it also brought us a brand new tax season. As we look back at a challenging year in the construction industry, with high interest rates, high supply costs, and steep inflation, here are some things to consider in 2025:

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1. Artificial Intelligence (AI) has thrust itself into the forefront of innovation and taken the business community by storm. But the construction industry seems to be lagging, becoming late adopters of AI. That is predicted to change. As AI becomes more refined, we will see it become more mainstream and integrated within the construction industry. Some of the capabilities of AI include improving safety, streamlining project management, and addressing increasing labor shortages, which turn into cost savings as companies combat soaring prices and rising inflation. We should see the industry utilizing AI to monitor job schedules, more accurately forecast projects, flagging delays, and helping with resource allocation -again saving businesses time and money.
2. AI will make is easier to collect biometric data and will help employers drastically increase security and time management, but it causes some concern with how that data is handled and used, especially from employees who will want to know how their private information will be used, kept, and more importantly protected. This will undoubtedly cause a new wave of state and federal legislation which will be introduced to protect biometric data. Businesses should be aware of legislation in their states about protecting biometric data and should take proactive steps to protect their employees’ data.
3. As AI is implemented more into everyday life it will require substantial infrastructure to house and support it. This should result in more work for the construction industry as tech companies start to expand. New buildings, roads, and energy infrastructures will need to be built to house and power AI, creating new construction projects soon.
4. The construction industry is expected to see more investment in infrastructure and industrial projects, partially due to larger numbers of natural disasters. As we come under the new Trump Administration, the America first policies are likely to support domestic industrial projects. These policies could expand R&D credits and make certain advantageous provisions of the Tax Cuts & Jobs Act permanent, in turn creating more projects for businesses to take on.

As we head further into 2025 be on the lookout for new and advantageous opportunities that will change the industry as we know it.

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