2025 Contractor Industry Growth: Trends and Implications

The contractor industry is experiencing steady growth in 2025, driven by robust demand, technological advancements, and substantial government funding. Construction employment has increased by 2.4% over the past year, with nonresidential construction outpacing residential growth. Wages have also risen by 4.2%, averaging $36.44 per hour, enhancing the industry’s ability to attract skilled labor.

Federal infrastructure initiatives continue to fuel demand, providing long-term projects across various sectors, including roads, bridges, and public buildings. According to the Associated General Contractors of America, 69% of firms plan to hire in 2025, reflecting optimism in the industry’s trajectory.

Technological integration is becoming increasingly vital, with tools like artificial intelligence, drones, and digital twins enhancing project efficiency and planning accuracy. A report from the National Center for Construction Education and Research indicates that 44% of contractors intend to increase AI utilization this year.

Moreover, contractors are investing more in digital marketing strategies, allocating approximately 40% of their marketing budgets to online platforms to improve visibility and attract qualified leads.

These trends underscore the importance of strategic planning and adaptability for contractors aiming to capitalize on the industry’s growth. For more insights, read the full article: 2025 Contractor Industry Growth Projections: What to Expect and Why It Matters