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GroundBreak Carolinas

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Contractors Have Optimistic Business Outlook, Yet Continue to Worry about Labor and Materials

by Carolinas AGC on

Nationally, construction contractors are optimistic about certain private-sector segments and have high hopes for most types of public-sector work, according to survey results the Associated General Contractors of America and Sage released today. Yet they have very low expectations for several private-sector market segments, remain concerned about labor shortages and are worried materials prices will climb amid threats of new tariffs, according to A Year in the Balance: The 2025 Construction Hiring and Business Outlook.

Locally in the Carolinas, Carolinas AGC (CAGC) President & CEO Dave Simpson is optimistic. “While we have concerns about the workforce shortage and drawing good talented people into excellent careers in construction, look for good times ahead for the next few years for the commercial construction industry in the Carolinas,” said Simpson. To help combat the workforce shortage, CAGC is working through its Construction Bootcamps and Construction Business Academies to attract new workers into the industry and address the top concerns of our members

View North Carolina Business Outlook results.
View South Carolina Business Outlook results.

Among contractors’ top concerns nationally for 2025, the three most frequently listed are all workforce related. Sixty-two percent picked rising direct labor costs as one of their top three concerns, while 59 percent listed the insufficient supply of workers or subcontractors, and 56 percent name worker quality. The only other concern cited by a majority – 54 percent – of respondents is materials costs. Given the supply chain improvements, this concern is likely related to President Trump’s threats to impose a broad range of new tariffs.

AGC officials are urging the new administration to work with Congress to establish new programs for temporary work visas that are dedicated to the construction industry. They are also urging President Trump and Congress to pass the Stronger Workforce for America Act, which boosts funding for post-secondary construction training programs and to boost funding for high-school construction training programs.           

Click here for A Year in the Balance: The 2025 Construction Hiring and Business Outlook. Click here for the survey results.
Click here to watch a quick video about the results.

Carolinas AGC (CAGC) is a construction trade association made up of small and large commercial contractors and construction-related firms that perform building, utility, and/or highway work in the Carolinas. CAGC is a chapter of AGC of America and ARTBA. Visit us at www.cagc.org, Facebook, YouTube, X, and LinkedIn. Learn about CAGC membership here.