Construction

Conversations in Construction: Uncertainty as the New Normal, Part 1

As part of the Conversations in Construction video series, Construction and Real Estate VP Dustin Stephens and industry experts examine some of the unique challenges and ground-breaking innovations in the world of construction.

November 3, 20254 min read Share

Construction has always been an industry of resilience. From managing tight deadlines to navigating shifting markets, contractors and developers have long adapted to challenges that come with the job. 

But today, uncertainty has become more prevalent.   

Firms are balancing the impacts of economic volatility with interest rates and tariffs, unpredictable material costs, and persistent labor shortages. These pressures touch every part of the construction ecosystem — from subcontractors in the field to CFOs planning for tomorrow’s projects.  

At Sage, we’ve supported construction businesses for more than 50 years, building a strong community of contractors, finance leaders, and technology partners along the way.

Through these relationships, we’ve gained valuable perspectives on how firms navigate an ever-changing industry. We share those insights in our video series, Conversations in Construction, which highlights real-world strategies to help firms strengthen operations and prepare for the future.  

In this episode, we’ll explore how technology is helping firms not only manage this uncertainty but also turn it into an opportunity. 

Here’s what we’ll cover:

Lessons from industry peers

I recently had the pleasure of sitting down with two industry leaders to discuss how construction businesses are leveraging technology to navigate through today’s uncertainty: John Moran is the CFO at W.R. Newman and Associates, Inc., a general contractor located in Nashville, Tenn.

Zachariah Merschdorf is a solutions architect at Accordant, a top value-added reseller in the ERP space serving clients across all of Canada and the U.S.  

The reality of construction uncertainty

Everywhere you look, firms are being asked to do more with less. 

• Subcontractors face challenges securing reliable labor and materials. 

• General contractors must lock in pricing while navigating tariffs.  

• Developers are watching interest rates closely, knowing even slight changes can upend financing plans. 

These realities create pressures across the board, and there’s no sign of them slowing down. Many projects are being delayed as owners wait for insurance rates to stabilize, while many subcontractors are adding language to their contracts to account for tariffs and price fluctuations.

Some firms respond by raising prices to offset the risk, while others narrow the scope of their work to ensure they can deliver successfully. 

At the end of the day, it starts with material and labor shortages and rising costs, then makes it way up to the chain. General contractors are trying to stay on top of subs, owners are pushing general contractors, and the cycle repeats itself. 

Watch Conversations in Construction: Today’s Reality to hear John’s and Zachariah’s insights on the current state of the industry. 

Why technology is no longer optional 

While this uncertainty continues to loom, waiting for it to “pass” is no longer an option. Instead, firms should be asking: What tools do we need to build resilience and stay competitive right now? 

Ten years ago, most firms viewed accounting software as a compliance requirement – just a way to close the books. Today, leaders see it as a strategic investment that pays for itself through operational efficiency, higher margins, and stronger competitiveness.  

While technology can’t solve every project challenge (i.e., change orders still exist), it can help better manage them to minimize the impact on profitability.

Technology provides visibility into project scope and costs, allowing firms to allocate expenses appropriately and avoid absorbing unexpected costs. It also ensures change orders reach subcontractors quickly, so schedules stay on track and project costs don’t need to be renegotiated. 

 Maximizing new technologies

Once firms recognize the value of leveraging technology, the next challenge is making sure it delivers results. Even the best tools won’t have an impact without buy-in.

When the entire team embraces technology, firms experience an array of benefits, including stronger budgeting, timelier RFIs and submittals, and smoother communication with both customers and subcontractors.  

The impact is even greater when solutions are integrated. By bringing preconstruction, operations, and accounting systems together, firms break down silos, speed up decision-making, and gain a clearer view of performance.  

Watch Conversations in Construction: Technology Imperative , to learn more about how leading firms are being more strategic about their technology investments.

Final thoughts

Uncertainty in construction isn’t going away. But firms that embrace technology are proving that unpredictability doesn’t have to mean instability. 

With the right systems and the right mindset, they’re transforming risk into resilience — and building stronger foundations for growth in the years ahead.

Watch Conversations in Construction: Today’s Reality and Conversations in Construction: Technology Imperative, to hear directly from industry leaders on how technology is helping them navigate today’s challenges.