Why Your Contracting Business Feels Different in 2025
Manage episode 480713900 series 3385001
The construction landscape of 2025 looks vastly different from years past, with labor shortages, material volatility, and regulatory changes creating a new normal for contractors. We explore what's changed, what will remain different, and how successful contractors are adapting their businesses to thrive in this environment.
• Labor shortages will continue as 40% of trades workers retire by 2031
• Material costs remain 36% higher than pre-COVID with no signs of returning to previous levels
• Volatile interest rates are causing project delays and financing challenges
• Successful contractors are buying and storing materials upfront to lock in prices
• Building relationships with inspectors is crucial as regulations increase
• Insurance coverage is becoming more confusing and expensive
• Focusing on specific niches rather than being a generalist contractor
• Forecasting your pipeline through December helps avoid desperation moves
• Creating "Kevlar" processes to protect against market volatility
• Maintaining profit margins is non-negotiable in today's environment
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Chapters
1. Welcome to Contractor Cuts (00:00:00)
2. Labor Shortages in Construction (00:01:23)
3. Material Volatility and Pricing Challenges (00:05:31)
4. Interest Rates and Material Storage Solutions (00:12:23)
5. Permitting Delays and Inspector Relationships (00:22:46)
6. Insurance Confusion and Increasing Costs (00:25:44)
7. Finding Your Construction Niche (00:28:59)
8. Planning Your Pipeline and Projections (00:31:46)
9. Final Thoughts on Navigating 2025 (00:40:12)
140 episodes