{"id":33007,"date":"2025-10-22T09:00:00","date_gmt":"2025-10-22T13:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=33007"},"modified":"2025-10-22T05:23:34","modified_gmt":"2025-10-22T09:23:34","slug":"construction-growth-in-2025-and-beyond","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/construction-growth-in-2025-and-beyond\/","title":{"rendered":"CFO Blueprint: Construction growth trends in 2025 and beyond"},"content":{"rendered":"
\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t\tTrends & Insights<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
\n\t\t\t\t\t

\n\t\t\t\t\t\tCFO Blueprint: Construction growth trends in 2025 and beyond\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t

\n\t\t
\n\t\t\t
\n\t
\n\t\t
\n\t\t\t\t\t\t\t
\n\t\t\t\t\t\n\t\t
\n\t\t\t\n\t\t\t\t\"Joe\t\t\t\tJoe Church Woods<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n

This year\u2019s AGC Construction Hiring and Business Outlook<\/a>\u2014a national survey of more than a thousand general contractors, conducted in association with Sage\u2014points to four bright spots in construction business growth that stand out against a backdrop of cost pressure, labor scarcity, and policy uncertainty. <\/p>\n\n\n\n

For finance leaders, understanding how\u2014and why\u2014these segments are expanding is the first step toward shaping a winning bid pipeline and capital-allocation plan.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Growth area #1: Transportation infrastructure<\/strong><\/h2>\n\n\n\n

Nearly a third (29%) of contractors expected higher-value transport projects in 2025 and beyond, buoyed by the $1.2 trillion Bipartisan Infrastructure Law and a proposed $770 million<\/a> boost to the Infrastructure for Rebuilding America<\/em> grant program. <\/p>\n\n\n\n

Expect competitive tenders for highways, rail hubs and port upgrades\u2014but also steel, aluminium and copper price volatility as tariff threats endure.<\/p>\n\n\n\n

CFO takeaway:<\/strong> lock in materials pricing early and build escalation clauses into contracts to protect margins.<\/p>\n\n\n\n

Growth area #2: Power projects<\/strong><\/h2>\n\n\n\n

With 32% of firms forecasting growth here, the power sector is being pulled in two directions. <\/p>\n\n\n\n

Federal support favors traditional generation and grid resiliency, while private demand is skyrocketing for renewables and EV-battery plants. <\/p>\n\n\n\n

Data center energy consumption alone is set to triple by 2028, driving utility-scale upgrades.<\/p>\n\n\n\n

CFO takeaway:<\/strong> scrutinize project timelines against potential permitting shifts; delays can quickly erode contingency funds.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Growth area #3: Water and sewer modernization<\/strong><\/h2>\n\n\n\n

Federal and state funding channels remain robust\u2014nearly $69 billion has already been earmarked for lead-line replacement, PFAS remediation, and drought mitigation. <\/p>\n\n\n\n

Even if some budgets tighten, states such as Texas and California are pressing ahead with multi-billion-dollar programs, and every megawatt of new data center capacity adds fresh demand for cooling water.<\/p>\n\n\n\n

CFO takeaway:<\/strong> monitor grant disbursement schedules closely as cash-flow forecasting depends on them.<\/p>\n\n\n\n

Growth area #4: Data center and semiconductor construction<\/strong><\/h2>\n\n\n\n

Once accounting for just 10% of manufacturing construction, projects in ‘computers, electronics & electrical’ now represent more than half, driven in part by a 45% surge in data center spending over the past year. <\/p>\n\n\n\n

In January 2025, 33 U.S. projects valued at over $100 million entered the planning phase, including Amazon\u2019s $500 million facility in Ohio.<\/p>\n\n\n\n

CFO takeaway:<\/strong> these mega-projects hinge on speed. Cloud-based job-costing and AP automation can deliver the real-time visibility owners demand and give your team an edge in joint-venture negotiations.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Navigating the shifting policy landscape<\/strong><\/h2>\n\n\n\n

Policy uncertainty is now a key challenge for many contractors: 26% of AGC respondents point to the new administration\u2019s shifting stance on tariffs, immigration, and green-energy incentives as a source of concern. <\/p>\n\n\n\n

At the same time, rising import duties threaten to squeeze already tight margins just as labor shortages worsen. <\/p>\n\n\n\n

To stay ahead, contractors must embrace proactive risk modelling\u2014scenario-testing exchange-rate swings, wage-inflation pressures, and lead-time shocks\u2014to identify vulnerabilities early and demonstrate the resilience that will set them apart.<\/p>\n\n\n\n

Final thoughts<\/strong><\/h2>\n\n\n\n

Public-sector dollars are finally flowing, while private-sector tech demand shows no sign of slowing. <\/p>\n\n\n\n

By pairing rigorous cost control with cloud-enabled financial visibility<\/a>, CFOs can steer their firms toward the four segments most likely to deliver sustainable growth\u2014and shield profit on every project that follows.<\/p>\n\n\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t\t

Sage Intacct Construction<\/h2>\n\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t

<\/p>\n

As the leader in construction accounting, Sage sets the industry standard with the only cloud-native solution endorsed by the AICPA\u2014built on 50 years of deep construction expertise.<\/p>\n

<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tLearn more<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"\"\t\t\t<\/div>\n<\/div>\n\n\n

\n\t
\n\t\t
\n\t\t\t
\n\t\t\t\t\t\t\t\t

Subscribe to our Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t
\n\t\t\t\t\t\t

Get our latest business advice delivered directly to your inbox.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\tSubscribe<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\"Working\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Explore four construction industry growth trends from the 2025 AGC Construction Outlook survey. Learn how small business contractors and finance leaders can use these insights to improve bidding strategies and capital planning.<\/p>\n","protected":false},"author":1847,"featured_media":9022,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[49],"tags":[195,399,192,188,153,34,155],"business_type":[40,41],"lilypad":[],"context":[],"industry":[50],"persona":[100,98,96],"imagine_tag":[246,468,437,233,230],"coauthors":[592],"class_list":["post-33007","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trends-insights","tag-boss-your-business","tag-business-continuity","tag-construction","tag-construction-business-development","tag-growing-a-business","tag-small-business","tag-staying-competitive","business_type-small-business","business_type-growing-business","industry-construction-and-real-estate"],"sage_meta":{"region":"en-us","author_name":"Joe Church Woods","featured_image":"https:\/\/www.sage.com\/en-us\/blog\/wp-content\/uploads\/sites\/2\/2022\/04\/GettyImages-527654092.jpg","imagine_tags":{"246":"Construction","468":"Grow your business","437":"Intacct Construction","233":"Medium Businesses","230":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice US","distributor_original_site_url":"https:\/\/www.sage.com\/en-us\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/33007","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/users\/1847"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/comments?post=33007"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/posts\/33007\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media\/9022"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/media?parent=33007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/categories?post=33007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/tags?post=33007"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/business_type?post=33007"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/lilypad?post=33007"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/context?post=33007"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/industry?post=33007"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/persona?post=33007"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/imagine_tag?post=33007"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-us\/blog\/api\/wp\/v2\/coauthors?post=33007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}