2025 IN REVIEW
The year 2025 unfolded amidst significant uncertainty, with a new presidential administration introducing various programs, changes, and initiatives. Concerns about potential tariffs on construction materials such as steel, lumber, aluminum, and fixtures raised fears of substantial cost increases. Additionally, higher-than-usual interest rates contributed to a slowdown in real estate development and new construction across commercial and residential sectors.
At the year’s onset, most of my construction company coaching clients had robust pipelines, with contract backlogs larger than usual. They anticipated annual revenue and profit growth ranging from 15 to 25 percent compared to previous years. However, the year-end results told a different story. Actual revenues for contractors declined by an average of 25 to 33 percent, while overhead costs slightly increased based on forecasts of higher earnings compared to 2024. Consequently, their projected net profits fell by 33 to 50 percent, with some not realizing any profit at all. This was largely due to project owners delaying or canceling new projects amid prevailing uncertainties.
Despite these setbacks, the numbers don’t capture the complete picture. While overall U.S. construction revenue was expected to grow by 3 to 4 percent in 2025, this growth was primarily driven by mega-projects valued between $500 million and over $1 billion. Smaller projects, such as infrastructure, roads, and private commercial and residential buildings, experienced lower revenues than projected.
Looking ahead, the outlook for 2026 appears brighter. Economic indicators suggest a return to more stable levels of revenue and profit. Contractors are encouraged to strengthen their businesses by implementing efficient systems, hiring experienced professionals, targeting high-margin clients, and avoiding unprofitable low-bidder project pursuits. For those seeking guidance, my newly released book, Turn Your Construction Business Into A Profit-Making Machine! is available on Amazon.com. It offers the BIZ-Builder Blueprint System, a proven step-by-step methodology to help contractors grow, organize, and manage profitable companies.
George Hedley
Construction Certified Professional Business Coach
HardHat BizCoach
TECH TRANSFORMATIONS IN 2025
In 2025, the civil construction industry witnessed significant advancements in technology that transformed how contractors operate. These advancements played a crucial role in bridging the gap between the promise of seamless communication and the practical challenges of integration.
Common data environments have become more collaborative, with design conversations increasingly taking place directly within 3D models. This shift has enabled quicker iterations and stronger alignment throughout projects, allowing stakeholders to transition from concept to reality with greater speed and confidence. The enhanced collaboration tools within CDEs have ensured consistent access to documentation and visualization, streamlining project execution.
Offering contractors a low-risk entry into new technologies, the subscription model for hardware and software has matured. This model provides scalability and lower upfront costs, allowing contractors new to technology a lower cost of entry, while enabling existing users to integrate workflows across their technology stack with predictable ongoing expenses. As a result, contractors have been able to focus more on building rather than managing technology workarounds, leading to tighter schedules and better cost control.
Fleet interoperability has also improved with the introduction of the ISO/TS 15143-4:2025 standard, which defines common data formats and communication protocols for earthmoving machinery and mobile road-construction equipment. This standard has facilitated true plug-and-play interoperability, enhancing office-to-field workflows, and operational efficiency.
Overall, these advancements have enabled contractors to spend less time reconciling data between systems and more time on construction, resulting in fewer surprises and more predictable project outcomes. As we look ahead to 2026, these developments promise to continue transforming the civil construction landscape.
Jeff Drake
Director, Emerging Market Solutions for Civil Construction
Trimble
ACI SEES CONTINUED FOCUS ON SUSTAINABILITY
In 2025, the American Concrete Institute (ACI) observed an accelerated global movement toward decarbonization and sustainability within the concrete industry. The concrete industry continues to respond to the need to reduce carbon emissions and its environmental impact while maintaining material strength, durability, and affordability. Developing sustainable materials, such as low-carbon concrete, and ensuring adherence to regulations have become essential pursuits.
This trend was prominent at major international forums, including COP30 in Brazil and the Big 5 Global in Dubai, where ACI played a significant leadership role.
At COP30, discussions highlighted that achieving a resilient future depends on global collaboration and verified progress, with a focus on accelerating industrial decarbonization in emerging economies.
Similarly, at Big 5 Global, ACI’s “Concrete Talks” convened experts to discuss sustainable concrete design, durability, and innovations. Presentations emphasized the importance of updated codes, such as ACI 318-25, in providing a framework for sustainable and resilient structures.
Across these engagements, a clear message continues that the path to a net-zero future for concrete is being paved through a combination of technological innovation, robust standards, and a shared global commitment to building a more sustainable and resilient world.
Brian Wheeler
Managing Director, Communications and Marketing
American Concrete Institute
THE YEAR IN CONSTRUCTION
The construction industry entered the year with solid momentum carried over from 2024, but that strength softened as new economic pressures emerged. By spring, total construction activity had slowed, reflecting broader uncertainty across financial markets, shifting tariff policy, persistent supply chain friction, and ongoing labor shortages.
Amid this volatility, the domestic steel industry stood out for its relative stability. Reinforcing steel benefited from its reliance on domestically sourced scrap, shielding it from many tariff impacts and sustained demand tied to long-term infrastructure investment. The rapid expansion of Buy Clean initiatives elevated the importance of materials with transparent, domestically verified environmental performance.
While overall construction spending declined, several non-residential categories showed resilience. Government-backed megaprojects and federally funded infrastructure programs helped sustain activity, while the surge in artificial intelligence applications continued to drive data center construction. Residential activity experienced modest improvement as mortgage rates began to stabilize, led by multifamily development in urban markets.
Trade tensions, workforce shortages, and supply chain variability weighed on planning decisions, and political uncertainty kept developers cautious. U.S. steel producers continued to manage output carefully to match demand. The year ends with a tight supply of steel materials and a nearly year-long increase in steel material prices.
Looking ahead, tariff policy remains one of the most significant variables shaping the market. At the same time, the industry is pushing for stronger constructability provisions in building codes. Momentum in these areas, alongside expanding Buy Clean policies, will influence construction activity in the coming year.
Lou Parous
President & CEO
Concrete Reinforcing Steel Industry