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Schweiger Construction 2025 Predictions: How Technology, Sustainability, and Workforce Challenges Are Shaping the Future

vmblog-predictions-2025 

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 

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.

Published Friday, January 31, 2025 7:30 AM by David Marshall
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