Construction at a Crossroads: Navigating 2025 with Data, Strategy, and Resilience
2025 began with optimism, driven by lower rates, a strong backlog, and waning supply chain disruptions. But in a matter of weeks, sweeping tariff announcements, economic contraction, and policy shifts introduced new waves of uncertainty. CBIZ surveyed construction leaders nationwide just before the “liberation day” announcements, and their responses, combined with our expert analysis, provide critical insight into sentiment and strategy during this pivotal moment.
Key Takeaways:
- Timing matters: Optimism was high before major shocks, but sentiment may now be more cautious.
- Labor is still the top concern, but new headwinds are emerging fast.
- Backlog remains strong, but may be a lagging indicator.
- Policy volatility is the new risk frontier.
Download the Survey Results
Take a deeper dive into the results of the CBIZ 2025 Construction Industry Survey.
Construction Survey Overview
Economic signals are flashing caution, but opportunity remains for those who act. Whether it’s risk-proofing your pricing model, revising your tax strategy, or doubling down on operational agility, the smartest firms are already planning their next move.
Take Control – Secure Your Business Against Political Risk
Policy Shockwaves Are Redefining Construction Risk Profiles
Aggressive tariffs and immigration crackdowns are reshaping the economics of construction, raising costs, constraining labor, and clouding forecasts. Contractors can no longer rely on backlog alone to buffer volatility.
Our survey window closed one day before the administration announced sweeping tariffs, shaking markets and sending steel/aluminum prices climbing. See how the construction industry stands to be affected.
Expert Point of View
CBIZ Risk Management Services
Lock in prices, reassess staffing, and enhance client communication to maintain margin and trust. Agility and foresight will separate the resilient from the vulnerable.
Stay Agile – Master Tariff Challenges and Supply Chain Shocks
Tariffs Are Raising Costs — But Also Forcing Smarter Operations
With material prices on the rise and trade conditions in flux, construction firms are rethinking procurement and supplier relationships. Leaders who pivot quickly can mitigate costs and uncover efficiencies.
As tariffs inflate costs, contractors need to focus their efforts on cash flow management. Read our recent article offering 7 tips for managing cash flow.
Expert Point of View
Tariff Playbook Resource
Build tariff clauses into contracts, diversify suppliers across geographies, and look for domestic sources that offer price stability. Track exemptions and loopholes as they emerge. Efficiency improvements and smart inventory management will buffer cost shocks.
Be Prepared – Don’t Get Caught Off Guard by Tax Changes
The TCJA Sunset Could Shock Your Bottom Line
Key provisions of the 2017 Tax Cuts and Jobs Act are set to expire in 2025, potentially increasing tax burdens and reducing incentives for construction investments. Many business owners remain unaware of the potential hit to cash flow and capital strategy.
Corporate tax rates could rise, and the 20% pass-through deduction could vanish, significantly altering the tax strategy for construction firms. It’s not too late to prepare for these and other changes using CBIZ’s 2025 tax guide.
Expert Point of View
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