January 6, 2025 Tech’s Response: Top 6 Construction Challenges in 2025

Discover how technology like AI and sustainable materials are reshaping the future of building and project management for construction.

By Steve Smith, Director of Partnerships – Bluebeam

The construction industry is amid a massive transformation, and not just in terms of skyscrapers rising taller or homes being built faster. From labor shortages to sustainability concerns, the industry faces numerous challenges that have forced stakeholders to rethink traditional processes. Fortunately, technology is increasingly stepping in to provide solutions, from automation to artificial intelligence (AI) and beyond.

Below, Built explores the six most pressing issues in construction for 2025 and beyond, and investigates how technology can help overcome them.

Labor Shortage

Challenge:

One of the biggest obstacles facing the construction industry is a critical shortage of skilled labor. As seasoned workers retire and fewer young professionals enter the field, the gap in skilled labor widens. According to a 2023 report from The Associated General Contractors of America, around 88% of contractors report difficulty finding skilled workers. This lack of manpower often leads to project delays and increased labor costs.

Solution:

Automation and Robotics: Automation and robotics are stepping up to reduce the strain on human labor. Machines are now capable of performing repetitive tasks like bricklaying, excavation and demolition, which not only speeds up the process but also improves safety. Robots, such as the semi-autonomous SAM100 bricklaying robot, can lay bricks more quickly and consistently than human workers, helping to offset the labor gap.

Additionally, construction management software streamlines scheduling, allowing companies to allocate their existing workforce more efficiently, ensuring that no labor is wasted.

Rising Material Costs

Challenge:

Volatile material prices have long been a source of financial strain in the construction industry. Factors such as supply chain disruptions, inflation and other unpredictable global events have driven up the cost of essential materials like steel, lumber and concrete, putting pressure on project budgets.

Solution:

Predictive Analytics and Supply Chain Technology: Building Information Modeling (BIM) is one solution that helps mitigate these costs by optimizing designs and reducing material waste. BIM allows for precise material estimates, ensuring that only the necessary amount is ordered. By simulating how a project will look and perform in the real world, it also helps detect design flaws early, preventing expensive changes mid-construction.

Additionally, Internet of Things (IoT) sensors and predictive analytics tools help monitor material availability and prices in real time, allowing for smarter purchasing decisions. When supply chains are strained, companies can quickly pivot and adapt, minimizing delays and reducing costs.

Sustainability and Environmental Impact

Challenge:

The construction industry is responsible for nearly 40% of global CO2 emissions, according to the World Green Building Council. As climate change intensifies, there is growing pressure on the industry to adopt more sustainable practices and reduce its environmental footprint.

Solution:

Green Technology and Energy-Efficient Design: Sustainable building materials like carbon-neutral concrete and recycled steel are emerging as eco-friendly alternatives. For example, innovations like hempcrete—a bio-composite made of hemp and lime—offer an environmentally friendly substitute for traditional materials while also providing insulation benefits.

Energy-efficient designs are another powerful solution. By leveraging BIM and advanced simulation tools, architects and engineers can model the energy performance of a building before it’s even constructed, ensuring that projects minimize energy use and emissions over their lifecycle.

In some cases, 3D printing is also helping to reduce waste. Companies are experimenting with 3D printing to create intricate building components that use only the necessary materials, eliminating excess and promoting sustainability.

Project Delays and Budget Overruns

Challenge:

Project delays and budget overruns are an endemic problem in the construction industry. Factors like poor planning, unforeseen site conditions and inefficiencies in resource allocation often contribute to projects exceeding timelines and budgets.

Solution:

AI and Drones: AI is revolutionizing project management by predicting delays before they occur. Using data from past projects and real-time conditions, AI systems can identify potential roadblocks such as weather disruptions, equipment breakdowns or labor shortages, enabling better planning and resource management.

Drones are also playing a key role in improving project timelines. Equipped with high-definition cameras and sensors, drones can perform site inspections faster and more safely than human inspectors, providing real-time progress updates and detecting issues before they become costly problems.

Safety Concerns

Challenge:

Construction remains one of the most dangerous industries, with high rates of injuries and fatalities. According to the Occupational Safety and Health Administration (OSHA), one-in-five worker deaths in the US occur in construction.

Solution:

Wearables and AI-Powered Safety Monitoring: Wearable technology is increasingly used to monitor worker health and safety on-site. Smart helmets and vests equipped with sensors can track vital signs, detect unsafe conditions and send real-time alerts to both workers and site managers.

AI-powered systems can also predict potential safety hazards by analyzing historical data and monitoring current working conditions. With predictive analytics, construction firms can take preventive measures, such as adjusting workflows or updating safety protocols, to minimize the risk of accidents.

Fragmented Communication and Collaboration

Challenge:

Construction projects often involve multiple stakeholders—architects, engineers, contractors and clients—each using different tools and systems. This fragmented communication can lead to misunderstandings, rework and project delays.

Solution:

Cloud-Based Collaboration Tools: Cloud-based platforms like Bluebeam offer real-time collaboration for all stakeholders, ensuring everyone has access to the latest project updates, designs and documents. These tools break down silos between teams and foster more transparent communication, reducing the likelihood of misaligned goals or missed information.

By integrating all project data into a single, accessible platform, cloud-based tools also support Integrated Project Delivery (IPD)—a methodology that brings all stakeholders together early in the project lifecycle to align objectives and minimize risks.

The Future of Construction: A Tech-Driven Transformation

The challenges facing today’s construction industry—from labor shortages to sustainability—are daunting. However, technology offers a promising path forward. From AI and robotics to green building materials and cloud-based collaboration tools, the construction sector is undergoing a digital transformation that promises to boost efficiency, safety and sustainability.

As more companies adopt these technologies, the construction industry will become better equipped to tackle its most pressing challenges, setting the stage for a more innovative and resilient future.

About the Author:
Steve Smith is director of partnerships at Bluebeam and is a long-time construction technology enthusiast. He began his career in construction directly after high school as a laborer for a general contractor in New Hampshire, and has also held manager and executive roles at Leica Geosystems and Hilti. He holds a Bachelor’s Degree from BYU and an MBA from the Thunderbird School of Global Management. He resides in the greater Atlanta, Georgia area.

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