Where Are We Now? Top 10 Construction Industry Concerns

Labor shortages. Supply chain chaos. Rising costs. Cyber threats. If it feels like déjà vu, you’re not wrong — these aren’t brand-new issues. But with fresh uncertainty swirling around global tariffs and the looming shadow of a potential recession, it’s time to ask: Where does the construction industry stand right now?

Here’s a closer look at 10 of the biggest challenges we’re tracking — and a call to you: are we missing one that’s keeping you up at night?

  1. Labor Shortages
    The skilled workforce is shrinking fast. With an aging labor pool and not enough new talent stepping in, firms are struggling to recruit and retain employees. The gap is growing, and so is the competition.
  2. Supply Chain Disruption
    While the pandemic may be in the rearview mirror, its supply chain whiplash still lingers. Material shortages and unpredictable delivery timelines are pushing project schedules — and patience — to the limit.
  3. Rising Material Costs
    From steel to concrete, prices continue to climb. Construction input costs are squeezing profit margins and complicating bids in a market already on edge.
  4. Cybersecurity Threats
    As more construction operations go digital, the industry becomes a bigger target for cyberattacks. A breach can halt operations, compromise data, and lead to serious financial fallout.
  5. Health & Safety Risks
    The physical dangers of construction are nothing new — but mental health and substance use are becoming crisis points. Construction workers face the highest rates of both, and the industry’s culture must evolve to address it.
  6. Cost Overruns
    Projects exceeding budgets is almost expected — but it shouldn’t be. Inaccurate estimates, unexpected delays, and price surges are turning budgeting into a guessing game.
  7. Slow Tech Adoption
    While other industries embrace automation and digital tools, construction is still playing catch-up. The lag in adopting productivity-enhancing tech is a missed opportunity.
  8. Cash Flow Crunches
    Payment delays, rising costs, and staggered project schedules are wreaking havoc on contractors’ cash flow, especially small to mid-sized firms.
  9. DEI Uncertainty
    Shifting DEI policies and legal interpretations are causing confusion and frustration. There’s a real fear of regression in inclusion efforts — and its impact will be felt across the workforce and regional reputation.
  10. Economic Volatility
    All eyes are on economic indicators. A recession — especially one tariff-induced — could freeze project pipelines and shrink opportunities across the board.

What’s missing from this list?
Let us know what you see from your seat. If there’s an issue keeping you (or your business) up at night, we want to know about it — and explore how we can help elevate it in our conversations and solutions.

Kelly Jackson
Executive Director, SLC3