Construction Market Report – Winter 2025

According to the Associated Builders and Contractors Association (ABC), the construction industry is facing a critical labor shortage due to the estimated 1.5 million undocumented immigrants working in the sector. The industry still needs to attract 439,000 new workers in 2025 and 499,000 new workers in 2026 to meet industry demands. Failing to do so will exacerbate labor cost increases across the industry, driving up construction expenses and limiting the amount of work that remains financially viable. Contractors will struggle to fill open positions, especially in regions with major manufacturing and data center projects underway.

In 2025, construction spending is projected to grow at its slowest rate in years, with interest rate-sensitive sectors like homebuilding facing particular challenges. The ongoing high interest rates throughout 2025 will continue to strain the financial landscape for the industry.

Download the full Winter 2025 Market Conditions Report below for more insights and detailed information on today’s construction market.