Industry executives and experts share their predictions for 2025. Read them in this 17th annual VMblog.com series exclusive. By Jay
Bluhm, President, Schweiger Construction
As we approach 2025, the construction
industry continues to face significant challenges, particularly in supply chain
disruptions and rising labor costs. While improvements are expected, these
issues will persist, requiring industry leaders and clients to adapt and plan
accordingly.
While supply chain issues may see some
relief, major changes in delivery speed for materials are unlikely in the short
term. Moderate improvements are expected in material delivery, but supply chain
constraints remain a critical challenge. Procurement strategies continue to
evolve as companies work closely with suppliers to minimize delays.
A key challenge is the inconsistent
quality of imported materials, which often fail to meet reliability standards
and result in delays. As a response, many firms are shifting focus toward
domestic suppliers, ensuring better control over material quality and reducing
risks associated with overseas imports. This adjustment is expected to enhance
project predictability and overall reliability.
The demand for quicker, more
cost-efficient construction is propelling the growth of modular and
prefabricated construction methods. These approaches allow for off-site
manufacturing of components, reducing both construction time and costs.
Prefabrication also alleviates some supply chain pressures by enabling
contractors to secure materials in advance. As demand rises, modular
construction is expected to become a mainstream solution for both commercial
and residential projects in 2025.
We will also see technology play a vital
role in managing supply chain issues in 2025. Improved tracking tools and
predictive analytics will help firms plan procurement more precisely, reducing
material shortages. However, the implementation of such technologies requires
substantial investment and workforce training to remain competitive.
The demand for sustainable buildings is
rising, and construction firms will need to integrate green practices while
managing costs effectively. Early commitments from clients to secure
sustainable materials will be crucial, as these materials often face similar
supply chain constraints as traditional components. A strong focus on recycled
materials, energy-efficient systems, and resilience to extreme weather
conditions will emerge, driven by consumer preferences, environmental
regulations, and long-term cost savings.
Labor shortages continue to be a major
concern, with skilled worker costs rising by approximately 20%. While this rate
is expected to stabilize, construction firms must adjust by focusing on
workforce development. Investing in apprenticeships, trade schools, and
on-the-job training will help build a more resilient workforce. Additionally,
automation will increasingly complement manual labor, allowing firms to
maintain productivity and high standards of quality.
The growing demand for data centers is
putting additional pressure on suppliers. Clients who commit to volume orders
early will secure supply chain priority, ensuring more reliable material
delivery and cost savings. Early procurement decisions are essential for
data-intensive projects, guaranteeing smoother execution and predictable
schedules.
While we anticipate moderate improvements
in supply chain dynamics in 2025, significant improvements may not occur until
2026. Therefore, it's essential for clients to adopt proactive procurement
strategies to avoid delays and manage costs effectively. In navigating the challenges of 2025, construction firms must
collaborate more closely with clients. Early procurement and volume commitments
will help mitigate material shortages and reduce costs.
The construction industry in 2025 will be
shaped by technological advancements, sustainability goals, and workforce
challenges. Firms that embrace innovation, invest in technology, and adapt to
workforce needs will lead the industry into a new era. By leveraging
technology, forming strategic partnerships, and adopting proactive procurement
strategies, the industry can deliver efficient, cost-effective, and sustainable
projects.
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ABOUT
THE AUTHOR
Jay Bluhm, President of
Schweiger Construction, brings over 35 years of expertise in engineering,
construction, and telecommunications. As a seasoned business leader, Jay is
known for his adept technical knowledge, competitive analysis, communication
skills, program management, and team development-especially in spectrum,
wireless, and wireline technologies. He provides executive leadership and
project oversight, ensuring project and customer commitments are successfully
met.
Jay's career highlights
include pioneering advancements such as the first national CDMA 200 network and
commercial IMS systems in the U.S. His contributions have earned him
industry-wide recognition, including awards like the Leadership Excellence
Award. Prior to joining Schweiger Construction, Jay managed bridge, highway,
commercial, and mission-critical projects, handled multi-million-dollar public
and private sector programs, and served as a recognized expert in construction
delay, design defects, and intellectual property litigation. Additionally, he
has overseen telecommunications programs with teams exceeding 300 members and
serves as an Executive Board Member on prominent telecommunications industry
boards. Jay holds a degree in Civil Engineering from South Dakota State
University.