The U.S. construction industry in 2025 faces growing pressure from tariffs, inflation, and material shortages, all of which are driving up costs and squeezing project budgets. Imported steel and aluminum have become significantly more expensive, forcing many developers to reconsider timelines and shift toward alternative materials or modular approaches. These price increases are compounding existing inflationary trends, making it harder for smaller contractors to stay competitive and for large projects to remain financially viable.

At the same time, the market is undergoing major structural shifts. Demand for data centers, manufacturing facilities, and infrastructure projects remains strong, buoyed by public investment and digital expansion. In contrast, commercial office and retail construction continue to slow as remote work and e-commerce reshape space needs. Builders are increasingly adopting digital tools and preconstruction modeling to forecast risk, control costs, and improve resilience in a volatile environment.

Adaptability will define which firms thrive in the year ahead. Read more here >