AGCVA Chair Thoughts: The 2025 Construction Hiring and Business Outlook

Each year AGC of America conducts a survey, The Construction Hiring and Business Outlook. The 2025 results were released in early January and can be found here. Overall, the survey showed contractors are optimistic and anticipate that 2025 will be better than 2024. Sectors with the largest expected growth are public infrastructure projects. Some of the optimism was likely dashed. These projects may be in jeopardy after Trump halted funding provided by The Inflation Reduction Act and the Infrastructure Investment and Jobs Act through executive orders signed in his first days. This included projects in the middle of construction. Most companies were optimistic in all categories except lodging and private office where there was an expected decrease. This optimism carried into staffing. Sixty-nine percent of companies anticipate adding employees in 2025. Of these, 48% of companies anticipate adding 10% or fewer employees, and 4% expect to add 25% or more.

Other areas of interest include improved stability in the supply chain and material pricing. This was partnered with uncertainty about what the impact on material prices will be once the Trump tariffs go into effect. The continued escalation in prices over the last five years has had a significant impact on projects. Two-thirds of respondents shared they have had projects postponed or cancelled. Sixteen percent have already seen cancellations and postponements for the first half of 2025. Uncertainty continues to plague the industry, but uncertainty can be a motivator as well. Efficiencies and opportunities, especially in regard to AI, drones, and technology are a key area companies are investing in. Key areas include accounting, fleet management, estimating, and project management. One thing that is not uncertain is that AGCVA and AGC of America are here for you and your companies in the ups and downs and in the transformations that are part of every facet of the industry.

As my year as your Chair comes to a close, thank you for the opportunity to serve AGCVA. It has been an incredible experience getting to know so many people in the industry, traveling around the state and country. I am so appreciative of the efforts of so many people that support, promote, and advocate for the industry. We are good hands.