The construction industry is at a turning point. As a tech founder, you’re uniquely positioned to drive innovation and lead this transformation. With rising interest rates creating financial pressures and technology adoption reshaping project delivery, 2025 presents both challenges and opportunities. Serent Capital, we’ve spent 15+ years partnering with founders to scale businesses in and around the construction sector, including 9 platforms and over a dozen total investments inclusive of Add-ons.. In this blog, we’ll explore how economic shifts, emerging technologies, and industry priorities are shaping construction—and where you can seize opportunities to drive impact and growth.
Trends shaping construction in 2025
Here are the trends we see:
Technology at the Core of Construction
Technology is no longer a peripheral consideration in construction—it’s foundational. From design to execution, innovative tools are reshaping how projects are delivered. Building Information Modeling (BIM) enables better collaboration between stakeholders, while IoT-enabled sensors provide real-time updates on equipment, material usage, and on-site safety conditions.
Artificial intelligence and machine learning are being embedded into project workflows to streamline operations, including resource allocation and logistics planning. As technology adoption becomes a central competitive advantage, companies embracing these tools are seeing measurable improvements in productivity and reduced waste.
End-to-End Workflow Platforms Becoming Standard
Gone are the days of siloed operations and disconnected workflows. Construction companies are increasingly adopting end-to-end platforms that consolidate multiple processes—from design and scheduling to procurement and execution—into a single, unified system.
These platforms act as a single source of truth, providing real-time visibility across teams and eliminating the inefficiencies of manual data transfers. By improving transparency and fostering better communication, they are becoming a critical tool for reducing delays and increasing productivity.
Growing Demand for Connected Ecosystems
The construction value chain is becoming more interconnected than ever. There is a growing need for software that connects project sites, contractors, and building product manufacturers in real time.
These platforms bridge communication gaps, aligning schedules, inventory, and delivery timelines to ensure projects run smoothly. By enabling contractors to work closely with manufacturers, companies can reduce material shortages and delays, while improving overall project efficiency. This demand for connection and collaboration is setting a new standard for how projects are delivered in 2025.
Challenges Facing Construction Technology Founders
Despite the industry’s rapid evolution, driving meaningful change in construction comes with unique challenges that you may already be navigating:
Navigating Financial Pressures
The construction industry continues to face significant financial pressures in 2025, driven by rising interest rates and tighter borrowing conditions. These dynamics force developers and contractors to prioritize projects with reliable cash flow and efficient timelines. For construction leaders, this means tools that enable smarter financial planning, accurate cost estimation, and more seamless cash flow tracking are essential, not optional.
Construction professionals are also leveraging predictive analytics to anticipate cost overruns and delays, helping mitigate financial risks early. Platforms that centralize financial data, automate reporting, and track real-time project spend are emerging as critical tools to stay competitive in a high-stakes market.
Integration with Legacy Systems
Construction companies often operate with legacy systems that don’t communicate effectively across departments or partners. This lack of integration leads to inefficiencies, duplication of effort, and poor data visibility.
Modern platforms are breaking down these silos by enabling seamless integration across procurement, project management, and on-site execution. By leveraging APIs and cloud-based solutions, companies are not only able to connect internal departments but also streamline communications with suppliers, subcontractors, and customers. This unified approach enables faster decision-making and fewer errors.
Driving Adoption in a Reluctant Market
The construction industry has historically been slow to adopt new technologies, but that’s changing. A younger, tech-savvy workforce is joining the ranks, driving demand for intuitive and modern tools. Furthermore, as projects become more complex, the need for streamlined communication and automation has become more evident.
Success in adoption hinges on creating solutions that are user-friendly and provide clear ROI. Companies that invest in training and change management strategies are also better positioned to realize the full value of their technology investments.
Tight Margins Demand Immediate ROI
The pressure to maintain profitability in the face of thin margins means construction companies must focus on tools that provide immediate cost savings. Technologies that reduce delays, rework, and inefficiencies are critical in an environment where every percentage point matters.
For example, solutions that integrate procurement and scheduling can eliminate material shortages and costly delays, while project monitoring tools help reduce expensive mistakes. With budgets stretched tighter than ever, companies need technology that demonstrates a measurable impact within months, not years.
Unlocking Opportunities: How Founders Can Lead Construction’s Transformation
While challenges exist, the construction industry is ripe with opportunities for founders who can solve real problems. Here’s where we see potential for innovative leaders like you:
Streamlining Scheduling and Resource Allocation
Efficient scheduling has always been a cornerstone of successful construction projects. In 2025, advanced scheduling software solutions are taking center stage, offering features like real-time updates, resource optimization, and multi-project management.
Platforms like these not only automate scheduling tasks but also provide visibility into potential bottlenecks and conflicts before they become costly issues. By integrating with project management and procurement systems, these tools ensure that materials, labor, and equipment are always aligned with project timelines.
For contractors, the ability to plan and pivot quickly in response to changes is no longer a luxury—it’s a competitive necessity.
Connecting Project Sites, Contractors, and Manufacturers
The construction sector is witnessing growing demand for software that connects stakeholders across the value chain. These platforms enable seamless communication between project sites, contractors, and building product manufacturers, creating an integrated ecosystem that eliminates information gaps.
For example, platforms that sync project schedules with suppliers’ inventory systems ensure timely deliveries, preventing costly delays. Similarly, real-time collaboration tools help align contractors with manufacturers, ensuring that the materials meet specifications and are delivered when needed.
By leveraging these solutions, construction leaders can strengthen partnerships, minimize miscommunication, and optimize project delivery from start to finish.
Implementing comprehensive workflow platforms
Builders and contractors are hungry for solutions that simplify workflows. Platforms that centralize tasks like design, procurement, scheduling, and reporting can offer significant value by reducing complexity and improving collaboration.
The construction industry is increasingly seeking comprehensive, end-to-end platforms that simplify workflows. These platforms provide a single source of truth, integrating everything from pre-construction planning and procurement to scheduling, on-site execution, and post-project analysis.
Such tools enable better collaboration across teams and eliminate manual, time-intensive processes. By adopting centralized platforms, construction companies can improve transparency, boost productivity, and stay ahead in a highly competitive environment.
Leveraging Data for Better Decision-Making
Data analytics is transforming how construction leaders approach budgeting, resource allocation, and risk management. Predictive analytics, for example, can identify potential delays or cost overruns based on historical trends, enabling companies to address issues before they escalate.
Automation tools can further enhance efficiency by streamlining repetitive tasks like invoicing, compliance tracking, and resource allocation, freeing up time for higher-value activities.
How Serent Capital Can Help You Lead the Construction Industry Forward
With over 15 years of experience investing in and scaling businesses across tech-driven industries—including construction—Serent Capital understands the unique challenges and opportunities founders face. Our hands-on Growth Team and extensive network of experts specialize in solving complex problems like integration, product expansion, and operational scaling.
The construction industry is at a turning point, and as a founder in this space, you’re uniquely positioned to lead its transformation. At Serent Capital, we’re proud to partner with visionary leaders to create lasting impact. With deep expertise in the construction sector—including investments in CoConstruct (now part of Buildertrend) and Next Gear Solutions (acquired by CoreLogic), BQE Software and Studio Designer—we bring the experience and resources to help you navigate today’s challenges, seize opportunities, and drive sustainable growth. Together, we can shape the future of construction.
Let’s Build the Future Together.
Discover our construction expertise.
Hear directly from one of our construction founders about their experience partnering with us. Watch their testimonial here.