Key technology findings from the 2025 AGC and Sage construction hiring and business outlook

Every year, the Associated General Contractors of America (AGC), in partnership with Sage, surveys contractors from across the US on a variety of topics impacting the industry.

The 2025 Construction Hiring and Business Outlook survey revealed some key trends.

More than 1,100 contractors from around the country provided insights on topics such as hiring, business challenges, and technology investment.

Overall, contractors are optimistic about certain private-sector segments and have high hopes for just about every type of publicly funded construction.

Yet they have very low expectations for several key private sector market segments.

They remain concerned about labor shortages and are worried materials prices will climb in 2025 amid threats of new tariffs and other factors.

“2025 offers quite a few bright spots for the construction industry even as the outlook for some private-sector segments remains quite dire,” said Jeffrey Shoaf, AGC’s chief executive officer. “Firms expect regulatory relief will help drive demand and they will continue to hire, when they can, and boost investments in technologies, particularly artificial intelligence.”

Here’s what we’ll cover

Technology investment

As the industry navigates challenges such as the qualified worker shortage and productivity demands, technology will continue to play an important role in helping teams increase their efficiency with limited resources.

Nearly all firms surveyed plan to increase or keep their current level of investment in software.

Only 1% to 3% of respondents expect to decrease investment in any of the technologies included in the survey.

Most respondents, ranging from 55% to 91%, say their investment will remain the same as last year in each of the 21 technologies included in the survey.

Artificial intelligence is the top category for increased technology spending, with 44% of respondents planning to increase their investment.

The other top categories for increased tech spending are document management software at 40%, accounting software at 36%, estimating software at 35%, and project management software also at 35%.

It’s not surprising that more construction businesses are planning to invest in AI as the industry continues to see the value of AI in streamlining operations and providing intelligent insights.

Advancements in AI technology can automate many key functions, ensuring teams always have real-time data and freeing up more time to focus on strategy and growth.

When it comes to changing technology solutions, the majority (59%) do not plan on changing any of their technology solutions this year.

20% of respondents plan to switch project management/operations software, while 15% anticipate changing accounting software.

Firms reported being less likely to change HR software (11%), preconstruction software (10%), and mobile applications (10%).

Cloud-based and mobile technology

As construction firms seek more flexibility and anytime, anywhere access from their solutions, we have seen more firms turning to cloud-based technologies.

The most prevalent use of cloud-hosted technology is in project management, cited by 61% of firms—a 3-point increase from last year.

Nearly half use cloud technology for accounting (48%) and field operations (47%), while 41% of firms surveyed use a cloud-based time tracking solution.

Only 15% list tool management, while 20% say they do not use the cloud.

These percentages are little changed from the 2024 and 2023 surveys.

As we’ve seen in previous years, when it comes to the use of mobile software technology, the adoption numbers are higher.

Two-thirds (69%) of firms are using mobile software for daily field reports, while 56% will use mobile technology for accessing customer and job information from the field.

More than half plan to use mobile software technology for employee time tracking and approval (54%) and sharing of drawings, photos, and documents (53%).

Other widely cited uses include access to job cost and project reports from the field (50%) and punch lists (46%).

Only 11% of firms report having no plan to use mobile technology.

Top IT challenges

While technology delivers many benefits, firms cite several IT challenges.

The top challenge cited this year was keeping company data secure from hackers (41%).

Last year’s top challenge: finding the time to implement and train on new technology, came in second with 38% of firms selecting it as a top challenge, down from 42% last year.

Employee resistance to technology was once again the third biggest challenge, with 36% of firms citing it as one of their top IT challenges, down 5 points from last year.

The next three biggest challenges selected by respondents are communication between field and office (32%), integration between software used inside our company (28%), and keeping software current (25%).

Businesses can take proactive steps to alleviate some of these challenges, including investing in secure cloud solutions, regularly updating solutions, and implementing robust security policies.

It is also important for businesses to prioritize finding the time to implement and train on new technology.

Once they do, cloud technology can help alleviate many of the other challenges cited.

Plus, once businesses adopt a modern cloud infrastructure, they can benefit from automatic updates, real-time insights, and added functionality, such as the latest advancements in AI.

Final thoughts

Technology will continue to play an integral role in helping contractors succeed amid current challenges in the year ahead.

The most successful firms will be those that approach technological adoption holistically — investing not just in software, but in the training, culture, and strategic implementation that are needed to maximize technology’s potential.

Prioritizing cloud-based solutions that are robust, integrated, secure, and user-friendly, can help construction businesses turn technological challenges into competitive advantages.