2025 Contractor Industry Growth Projections: What to Expect and Why It Matters
2025 Contractor Industry Growth Projections: What to Expect and Why It Matters
The contractor industry continues to grow steadily in 2025. Strong demand, new technology, and government funding drive expansion.
Construction Jobs and Wages Are Rising
Construction employment increased by 2.4% over the past year, according to the Associated General Contractors of America.
Nonresidential construction grew faster than residential, rising 3.0% versus 1.5%, respectively.
Wages also increased by 4.2%, now averaging $36.44 for hourly workers.
More pay means contractors can attract better talent and complete projects faster.
This signals a healthy and competitive labor market across construction segments.
Federal Projects and Infrastructure Spending Fuel Demand
Federal infrastructure bills continue to fund roads, bridges, and public buildings.
These projects offer long-term work for general and specialty contractors alike.
The AGC reports that 69% of firms plan to hire in 2025.
Nearly every contractor segment—electrical, mechanical, and civil—is expecting more projects this year.
Government investment helps stabilize the industry and boosts private-sector confidence.
Contractors Turn to Technology for Efficiency
Technology adoption keeps rising among contractors of all sizes.
Artificial intelligence, drones, and digital twins reduce project costs and improve planning accuracy.
According to NCCER, 44% of contractors will increase AI use in 2025.
These tools streamline tasks, reduce delays, and support labor-short project sites.
Technology is no longer optional—it’s essential for growth.
Digital Marketing Brings In More Business
Contractors are spending more on digital marketing to stay competitive.
A report from Improve & Grow shows 40% of marketing budgets now go to online tools.
Local SEO, social ads, and review platforms help contractors generate qualified leads.
In a crowded market, visibility directly affects success.
A better digital strategy leads to more jobs and stronger cash flow.
Strong Economic Tailwinds Support Future Growth
The U.S. construction economy remains on track to grow through 2026.
Rising demand, increased spending, and a focus on infrastructure all contribute to stability.
Despite labor shortages and material costs, contractor optimism remains high.
Smart hiring, training, and risk management will help firms succeed long term.
Insurers, lenders, and developers all see strong signals in the data.
Saberlines Insurance proudly provides customized insurance solutions for contractors to help protect their business and support their growth.