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    Home»Construction»2025: What’s Next for Construction
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    2025: What’s Next for Construction

    Updated:December 4, 2024No Comments4 Mins Read
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    This is the time of year to peer into that crystal ball and take a closer look at what is to come in the year ahead. Many analysts and construction companies are throwing their predictions into the ring, helping paint a picture of how 2025 will unfold. Today, let’s take a close look at where we are today—and then look at where we are headed in 2025.

    Where We Are Now

    JLL suggests the first three quarters of the year brought consistency in costs and the start of interest rate cuts, along with high levels of construction activity. In 2024, we have seen increased construction spending volumes. However, we have also seen some challenges.

    DPR Construction recently released its Q4 Market Conditions Report, which shows construction and real estate industries are seeing both a combination of challenges and opportunities. Let’s look at just a few of the highlights.

    Economy: The DPR report suggests economic conditions post-elections will significantly impact financing options for projects. A stable economy could encourage investment, while uncertainty might cause hesitation.

    Labor: The research shows 77% of contractors report increased difficulty filling craft positions in 2024 compared to 2023. Ongoing labor shortages highlight the need for investment in training and development.

    Supply chain: Here we see ongoing Middle East conflicts and geopolitical tensions with China, Russia, and Iran as well as drought and extreme weather events continue to impact global supply chains. The Taiwan Strait’s instability could also impact global freight rates and the semiconductor supply chain.

    This report illustrates many of the challenges the construction industry has faced the past year—and it is likely many of these challenges will continue to impact the industry in the year ahead. Next let’s turn our attention to what comes next in 2025.

    Where We Go Next

    The future is bright for the construction industry. We know there are big opportunities to build resilient and sustainable cities and infrastructure of tomorrow. JLL’s 2025 U.S. Construction Outlook looks at three key areas for 2025. Let’s unpack each briefly here.

    Getting ahead of the curve: The report suggests the construction industry needs to adapt to evolving economic conditions, regulatory changes, and market dynamics. The takeaway: contractors need to be flexible and resilient when it comes to project management and risk mitigation.

    Embracing sustainability and innovation: We are seeing the rise of advanced technologies such as AI (artificial intelligence), the IoT (Internet of Things), and digital twins. If construction companies what to elevate their businesses, they must consider how these technologies, along with sustainable approaches, will be leveraged in 2025 and beyond. It is no longer a nice-to-have; it is a must-have.

    Building for people and resilience: The role of people, policies, and development continue to shift, as labor challenges, climate risks, and revised policy objectives continue to change. With all this in mind, leaders should look to focus on resilience, preparing for the impact of infrastructure investments and leveraging the interconnected nature of development.

    These two reports hit the highlights, but I think it is important to note agility and evolution are key. This is all much easier said than done for many construction companies. We must align the people, process, and technology to ensure we can build a better tomorrow.

    Another report suggests AI-driven data-center construction is predicted to multiply by record rates during the next three years. AI will impact site selection, design, supply chain, project management, and even scheduling. This proves there is great hope for the construction industry and the future of building, design, and operation of many facilities.

    Want to tweet about this article? Use hashtags #construction #IoT #sustainability #AI #5G #cloud #edge #futureofwork #infrastructure 

    5G AI Cloud Construction Economy Edge Featured Future of Work Infrastructure IoT Labor Peggy’s Blog Predictions Supply Chain Sustainability
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