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Modest Growth Forecast:
While the overall construction sector is expected to see growth in 2025, the commercial sector's growth is projected to be modest, with some forecasts suggesting gains of just over 2%. This growth might not fully offset the rising costs of labor and materials, potentially leading to a flat or even slightly declining volume of construction in some segments.
Labor Shortages:
The construction industry continues to grapple with a significant labor shortage, impacting project timelines and costs. Many contractors report difficulties in finding qualified skilled workers, and this challenge is expected to persist or even worsen in 2025.
Material Costs:
Construction input costs have been volatile, but some signs of stabilization are emerging, with construction input prices decreasing slightly in recent months. However, material costs are still a concern, with predictions of a slight increase in 2025, potentially impacting project budgets.
Technology:
Contractors will use smartphones and tablets to document projects, review drawings, and communicate with the office. Virtual and augmented reality will be used as training tools. AI and machine learning continue to grow in use to improve workflows and decision-making.
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