2025 INDUSTRY OUTLOOK
AGC of California Survey Offers Insights on 2025 Industry Outlook
BY TERESA KENT T
he AGC of California recently released findings from its annual membership survey, highlighting optimism among contractors about the future of the construction
industry. Respondents anticipate strong financial performance, growth opportunities, and robust recruitment efforts in 2025, underscoring an encouraging outlook for the sector. "Listening to our members through this survey is vital. It gives us a deeper understanding of their challenges and per- spectives, allowing us to align our efforts with their needs,” said Peter Tateishi, chief executive officer, AGC of California. “By using these insights, we can guide strategic planning and craft initiatives aimed at strengthening California’s construction industry, driving growth through comprehensive workforce development, robust advocacy, and leadership programs that champion inclusivity. Key takeaways from the AGC of California 2025 Optimism
Survey include the following insights: • Nearly 63% of respondents foresee growth or a moderate increase in overall business activity across California’s construction sector in the coming year. Additionally, 77% believe the industry will either maintain its momentum or expand further in 2025.
• A strong 79% of contractors expressed confidence in their
own companies’ future success in the year ahead, with many respondents predicting revenue and profit increases for 2025. Specifically, 69% expect a rise in revenue — 13% anticipate significant growth, 26% project moderate gains, and 30% foresee slight improvements.
• About 57% of firms plan to increase hiring efforts in 2025. Of that group, 17% are preparing for a moderate ramp-up, while nearly 5% are poised for a substantial boost in their workforce recruitment.
• Approximately 65% of respondents are hopeful for a net profit increase next year, with nearly 20% expecting stability. Only 15% anticipate a decline, reinforcing the industry’s overall optimistic forecast.
Te survey also shed light on the key challenges facing
California’s construction sector in 2025. Among them is the pressing demand for skilled labor, an issue raised by 68% of respondents. Regulatory compliance emerged as a concern for 67%, while increasing wages and employee benefits added pressure for 51% of participants. These findings underscore a dynamic mix of challenges and opportunities for construction professionals in the year ahead.
ECONOMIC OUTLOOK AND INDUSTRY EXPANSION More than
of contractors are optimistic that their revenue and net
80% same or increase in 2025. 76% 28
of contractors believe that construction will expand or stay the same in 2025.
CALIFORNIA CONSTRUCTOR MARCH/APRIL 2025
79%
of contractors are optimistic about their company’s success in 2025.
More than
TOP CONCERNS FOR 2025
•Workforce pipeline development
•Regulatory requirements
• Increased pay and benefits
of contractors project hiring will stay the same or increase in 2025 compared to 2024.
81% Read more survey results
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