Contractors are generally optimistic about the outlook for nonresidential and multifamily construction in 2025, while expectations differ from a year ago, based on Associated General Contractors of America’s 2025 AGC/Sage Construction Hiring and Business Outlook Survey. The survey included 1,109 responses from November 8 to December 13. Respondents were asked whether the dollar value of projects they compete for would be higher or lower in 2025. The percent of respondents expecting a higher dollar value was positive for 15 out of 17 project types. Respondents were more upbeat than in the 2024 survey regarding nine types, less optimistic about four types, and had nearly unchanged views about four types.
The broadest optimism was for data center projects, with a net positive reading of 42 percentage points (up 22 points from the 2024 survey), followed by water and sewer projects, 35 points; power, 32 points; transportation facilities, 29 points; other health care (such as clinics, labs, and testing facilities), 27 points; manufacturing plants, 25 points (up 10); hospitals and bridge/highway, 24 points each; federal, 22 points (down 7); warehouses and public buildings, 14 points each; K-12 schools, 13 points; higher education and multifamily, 12 points each; lodging, 7 points (up 10 from -3 in 2024); private office, -3 points (up 21 from -24); and retail, -5 points (up 10 from -15).
Nearly half (45 percent) of firms reported having no supply-chain issues, up from 23 percent in 2024 and 9 percent in 2023. The three most often listed concerns for 2025 were all workforce-related: rising direct labor costs, picked by 62 percent of respondents; insufficient supply of workers or subcontractors, 59 percent; and worker quality, 56 percent.