Here are some of the hottest topics shaping construction conversations over the past year. Were these on your radar, too? How do you think these issues will affect your work in 2025?
1. The labor shortage struggle
In 2024, more than half-million new workers were needed to keep up with demand. And that’s on top of normal hiring rates. Plus, fewer young people are going into skilled trades at the same time that many older workers are retiring or shifting to other industries. It’s like a perfect storm without enough hands on deck.
Brad Buckles, VP of Technology and Innovation, Charles Perry Partners, Inc., anticipates it’s a struggle that won’t go away any time soon.
“The industry will continue to be impacted by an ever-growing shortage of skilled labor, leading to greater investment in training and education programs,” he said. “It is a must that we rapidly invest in continued automation and robotic technologies to compensate for the labor shortage. AI has and will continue to help augment staffing shortages while increasing accuracy and improving time-to-delivery. Prefabricated construction again could help ease labor shortages.”
2. Tech is taking over
Gone are the days when technology was a nice-to-have. Now, it’s a must. And industry pros are buzzing about all the latest innovations.
AI is being used to plan projects, manage risks and boost productivity. Increased AI integrations with BIM are helping people use their rich data sets to make smarter decisions and be more efficient. Speaking of data, since AI tools are only as good as the data they leverage, there’s also been a bigger emphasis placed on using tech that captures real-time field data.
Additionally, drones are helping monitor sites, ensure safety and even reduce waste. And robotics are getting more attention, particularly for addressing labor shortages.
“Robotics is gaining significant momentum as it supplements our craft and removes our teams from harmful conditions,” said Tim Gaylord, director of innovation at DPR. “If we are looking long term and truly thinking big, I think the potential that robotics will build in new and wild environments, like in space, is incredible.”
Teams are also excited about easier ways to integrate all their construction software for smoother data sharing and workflows.
Another technology that got a lot of buzz was 3-D printing. Its potential for reshaping construction is huge — from reducing waste to enabling faster, more precise building processes to offering new design possibilities for complex and customized structures. In March 2024, ICON released the Phoenix, a multi-story robotic construction system that can print an entire building enclosure, including the foundation and roof. More than a piece of advanced equipment, ICON sees the Phoenix as a “robotic companion” or “coworker” helping teams unlock new possibilities.
3. Eco-friendly building is the future
While sustainability is generating a lot of buzz among industry professionals, it’s definitely not a buzzword — it’s a priority. What used to be more about meeting regulatory requirements is now a business imperative. From net zero carbon homes to recycled materials, builders are getting creative to meet growing demands from governments, consumers, and industry experts alike for eco-conscious construction.
Smart homes and smart cities are quickly becoming the standard in sustainable design. We saw a lot of chatter about automated energy management systems using IoT sensors and AI algorithms to automatically adjust things like heating, cooling and electricity usage to maximize energy efficiency. There’s also growing interest in passive house design, which is all about designing and building a structure in the most energy-efficient manner through things like superior insulation, airtight construction, and strategic window placement.
Some of the most-talked-about sustainable materials were cross-laminated timber (a renewable resource that can be used in place of steel or concrete), green roofs and living walls, and low-carbon concrete alternatives like carbon-capturing concrete and geopolymer concrete.
4. Economic pressures are hitting hard
Inflation and high interest rates have made every decision — from choosing materials to setting budgets — just a little trickier. The residential construction industry in particular has faced significant challenges. Not to mention factors like geopolitical tensions, the November election, and supply chain disruptions adding to the unpredictability.
On top of that, fluctuating material costs (steel and lumber, anyone?) have thrown curveballs into project planning. Diversifying suppliers and strengthening partnerships have become critical strategies for navigating these disruptions.
Companies also have been exploring how AI-driven predictive analytics can help mitigate some of this by anticipating delays and material shortages, as well as identify cost-effective alternatives and give supplier recommendations.
5. Seeing construction through a new lens
If you’re not part of the 37% of construction companies intending to invest in augmented reality (AR) over the next two years, you’ve probably at least been thinking about it. AR lets you overlay digital models onto physical environments so you can see if there are any design clashes or spot other safety issues early in the process. More companies also have been using it to train new workers.
But AR is just one piece of the puzzle. Conversations have been expanding to extended reality (EX), the umbrella term for AR, virtual reality (VR) and mixed reality (MR). EX lets you immerse yourself in 3-D models at a 1:1 scale so you can get a realistic understanding of your project. It bridges the gap between onsite workers and remote teams for better collaboration. Over the past year or so, as hardware has become more accessible and software solutions more integrated, construction professionals are moving away from looking at XR technology as experimental and more so as an essential component of modern construction.
6. Breaking the silence about mental health and well-being
While many are aware of the physical dangers in construction, like working at heights or in hazardous conditions, the mental health challenges are often overlooked, even though construction workers appear to be struggling more than most. Construction workers have the highest overdose death rate and the second highest suicide death rate of any U.S. industry, according to the September 2024 edition of CPWR’s Data Bulletin.
Thankfully, there seemed to be a boost in mental health conversations over the past year.
“We spend so much time on physical safety and health in construction,” Lea Rummel, who works as an electrical estimator at general contractor Rudolph & Sletten, told Bluebeam. “We need to be making a similar effort around mental health and safety.”
The Construction Working Minds White Paper 2024 identified the top priorities for tackling the issue, including fostering a culture of care, empowering workers as advocates, improving training and educational efforts, enhancing resource accessibility and addressing psychosocial hazards like long working hours and job insecurity.
“Mental health and worker well-being are gaining well-deserved recognition and awareness across the construction industry,” said Mark Dyke, a construction technology and management professor at Ferris State University. “There is a growing focus on prioritizing worker well-being to ensure a better quality of life for the workforce. By recognizing our gaps and failures of the past, we can move the entire industry forward by teaching the next generation how to prioritize their mental health, resulting in better projects and, most importantly, happier, more fulfilled workers.”
The takeaway: Shaping a stronger, smarter industry
The construction industry is evolving in real time. And the conversations of the past year aren’t just making headlines — they’re redefining how work gets done and pushing companies to be more innovative, efficient and people-focused. Staying informed and proactive will be key to staying competitive. And the steps we take together today will shape the future of construction for years to come.
