The construction industry had plenty to celebrate in 2024. Value, output, spending, and employment all experienced growth, marking a year of progress and opportunity. Yet, despite these successes, the road ahead is not without its hurdles.
According to a recent AGC survey, 78% of contractors report difficulty filling estimating roles—a critical component of any project’s success. Labor shortages remain a pressing issue, compounded by rising interest rates, rapid advancements in construction technology, and the unpredictable dynamics of the economy and political climate.
As we look to 2025, the outlook remains positive, with plenty of opportunities for growth and innovation. However, the industry must address these challenges head-on to ensure continued success in the face of change.
How will the construction industry outlook for 2025 affect preconstruction? We asked our clients and partners what they predict to be the biggest challenges and trends for preconstruction next year, and here is what they had to say:
Patrick E. Murphy, CEO and Founder Togal.AI 
"I’d describe the current outlook as a tale of two worlds. On the one hand, there’s a surge of optimism and confidence in the market. With increased liquidity and pressure to lower interest rates, we’re already seeing more activity in preconstruction and a greater willingness from owners to move projects forward aggressively. On the other hand, the potential for tariffs and mass deportations could lead to significant price increases and instability in an already stretched construction labor market. It’s still too early to tell what’s campaign rhetoric versus what will become policy, but this uncertainty has the potential to dampen what could otherwise be a strong 2–3-year construction boom."
Taimoor Khan, Vice President Preconstruction, Satterfield & Pontikes
In 2025, the preconstruction field is expected to face several challenges and opportunities:
Challenges:
- Supply Chain Disruptions: Ongoing issues with material shortages and delays may continue to impact project timelines and budgets.
- Precon Talent: Many companies will face challenges in recruiting skilled preconstruction talent.
- Technological Integration: Implementing new technologies (like BIM and project management software) can be complex and require significant investment in training and resources.
Opportunities:
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- Advanced Technologies: The integration of AI, machine learning, and data analytics can enhance project planning, risk management, and decision-making. More organizations will be looking into AI tools to enhance their preconstruction processes.
- Investment into Precon Technology: An increasing number of companies will adopt database-driven estimating software. A growing number of firms will invest in preconstruction software and tools.
- Collaboration Tools: Enhanced collaboration platforms can improve communication among stakeholders, leading to more efficient project planning and execution.
- Remote Work and Virtual Design: The rise of remote work can facilitate the use of virtual design and collaboration, allowing teams to work more flexibly.
- Integrated Solutions: More companies will be driven to seek integrated solutions that allow for data to remain within a single system and enable seamless sharing between different platforms.
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Stewart Carroll, Chief Customer Officer at Beck Technology agrees. He says there is uncertainty for sure, but no matter what happens with the economy and interest rates in 2025, Stewart predicts that preconstruction teams will be busy regardless. You still have to pursue new projects and win more work.
Where one of the greatest challenges is going to be in precon and in the construction industry is going to be “doing more with less,” says Stewart. As shelved projects open, Stewart sees a terrific opportunity for joint ventures. Yet, reiterating what Brent said, with more work and not enough people, how will you deliver with less people? He says, “Unless you find ways to do more with less, you’re just going to do more.”
He says, “2025 is going to be a year where preconstruction is sure busy either way.”
We will be exploring the solutions to preconstruction challenges in 2025 in the coming weeks and months. Subscribe to our blog to stay up to date on the latest preconstruction trends.
