2025 Construction and engineering trend report

This report is designed to provide valuable insights for industry professionals, including contractors, architects, engineers and project managers, as well as investors and other stakeholders interested in the construction and engineering industry. Whether you are looking to stay up-to-date on the latest trends or seeking innovative solutions to address industry challenges, this report is an essential resource.

Highlight: supply chain pressures

Inflation and extended construction lead times are forcing procurement teams to choose between competitive pricing and risk management. Longer lead-in periods and inevitable material price hikes are making it difficult for contractors to bid competitively while managing tender risks. The outsourcing of labor to suppliers is also a major issue, with small margins, high risks and insecure payment structures.

1. Sustainable construction practices

Sustainable construction practices have been gaining momentum in recent years and this trend is expected to continue in 2025. With the growing focus on reducing carbon emissions and combating climate change, the construction industry is embracing sustainability as a key principle in building design, construction and maintenance.

One of the main aspects of sustainable construction practices is the use of eco-friendly materials. This includes using materials that have a lower carbon footprint, such as recycled steel, reclaimed wood and lowemitting concrete. Another important aspect is reducing waste, which can be achieved through the use of modular and prefabricated construction techniques, as well as recycling and repurposing building materials.

Energy-efficient design principles are also a key component of sustainable construction practices. This includes incorporating passive solar design elements, such as maximizing natural light and ventilation, as well as using energy-efficient lighting, HVAC systems and appliances. By reducing energy consumption, buildings can significantly reduce their carbon footprint and contribute to a more sustainable future.

In addition to environmental benefits, sustainable construction practices can also have economic and social benefits. For example, energy-efficient buildings can result in lower operating costs, while green roofs and urban gardens can provide a range of social and environmental benefits, such as improving air quality, reducing heat island effects and providing space for community gatherings.

2. Digital transformation

The construction industry is undergoing a digital transformation. This transformation is driven by the growing availability of digital technologies that can improve productivity, accuracy and safety on construction sites.

One of the key technologies driving digital transformation is building information modeling (BIM). BIM is a digital 3D model-based process that allows architects, engineers and contractors to collaborate and share information throughout the construction process. BIM can help to improve project coordination, reduce errors and rework and optimize building performance.

Another important technology is 3D printing. 3D printing allows construction companies to create complex geometries and shapes with a high level of accuracy and precision. This can shorten construction time and enable the creation of customized building components.

Drones are another digital technology that is becoming increasingly popular in the construction industry. Drones can be used to survey construction sites, inspect buildings and monitor progress.

Other digital technologies that are expected to continue to impact the construction industry in 2025 include augmented and virtual reality, Internet of Things (IoT) sensors and artificial intelligence (AI). These technologies can help to optimize building performance, improve safety and streamline construction processes.

3. Modular construction

Modular construction is a trend that is expected to continue in 2025, as the industry looks for ways to improve efficiency and reduce costs. Modular construction involves assembling buildings from pre-fabricated modules that are manufactured off-site and then transported to the construction site for assembly.

One of the main benefits of modular construction is the speed at which buildings can be assembled. Because the modules are manufactured off-site in a controlled environment, construction time can be significantly reduced. This can result in cost savings and faster project completion times, making it an attractive option for clients.

Another benefit of modular construction is the potential for improved quality. Because the modules are manufactured in this controlled environment, they can be built to a higher standard of precision and quality control. This can result in fewer defects and errors during construction, which can save time and money on rework.

4. Focus on safety

The construction industry has long been associated with high rates of accidents and injuries. Safety is now a top priority for many construction companies, as they recognize the importance of protecting their workers and minimizing the risk of accidents and injuries.

One of the main drivers of this trend is the growing recognition of the human cost of accidents and injuries. Construction workers are at risk of a wide range of hazards, from falls and electrical shocks to exposure to hazardous substances. These hazards can cause serious injuries, long-term health problems and even fatalities. By prioritizing safety, construction companies can protect their workers and ensure that they can return home safely at the end of each day.

Another driver of the trend towards safety is the growing recognition of the economic cost of accidents and injuries. Accidents and injuries can lead to lost productivity, increased insurance costs and legal liabilities. By improving safety, construction companies can reduce these costs and increase their bottom line.

To improve safety on construction sites, many companies are adopting a range of strategies and technologies. This includes implementing safety training programs, using safety equipment and protective gear and adopting safety protocols and procedures. Companies are also investing in technologies like drones, wearables and sensors that can help to monitor safety conditions on construction sites in real time.

5. Resilient infrastructure

The construction industry has recognized the need to build infrastructure that can withstand and recover from natural disasters, extreme weather events and other shocks and stresses. One of the main drivers of this trend is the growing recognition of the risks associated with climate change.

As the frequency and severity of natural disasters and extreme weather events increase, it is becoming clear that many of our existing infrastructure systems are not designed to withstand these shocks.

Another driver of the trend towards resilient infrastructure is the growing recognition of the economic benefits of resilience. Infrastructure systems that are designed to be resilient can help to reduce the costs associated with damage and disruption caused by natural disasters and other shocks. This can help to save money for businesses, governments and communities while increasing the overall resilience of the economy.

To build resilient infrastructure, many construction companies are adopting a range of strategies and technologies. This includes using materials and designs that are more resistant to damage from natural disasters, such as reinforced concrete, hurricane-resistant windows and flood-resistant barriers. Companies are also using digital technologies to model the potential impacts of natural disasters and identify areas of vulnerability, and adopting new construction methods that can help to reduce the risk of damage and disruption during and after a disaster.

The benefits of outsourcing

It has never been more important for companies to embrace innovation and a fresh approach to the way they do business. Temporary employment is nothing new in the engineering and construction industry and the modern outsourcing provider allows firms to be even more flexible and agile in relation to their employment needs and, in turn, improve efficiencies and increase margins.

Expertise

Outsourcing staff allows organizations to tap into the expertise of highly skilled, experienced talent at a much lower cost than in their local market. The Philippines produces more than 70,000 engineering graduates each year, a ready-made workforce for completing both complex and entry-level tasks such as structural engineering and 3D architectural rendering.

Scalability

Partnering with a third-party provider means staffing solutions can be scaled up or down depending on business needs and market demands. Furthermore, outsourcing basic roles creates more time for permanent employees to focus on more important tasks and projects.

Costs

Using highly skilled talent in a low-cost location like the Philippines allows engineering and construction companies to regularly achieve 50 to 70% savings on labor costs while continuing to ensure quality results.

Technology

Using highly skilled talent in a low-cost location like the Philippines allows engineering and construction companies to regularly achieve 50 to 70% savings on labor costs while continuing to ensure quality results.

Communication

Where communication issues were once a potential outsourcing bugbear, platforms such as Zoom and the COVID effect have created a world where it is now routine for colleagues to meet, converse and collaborate with ease across oceans. Rather than the domain of megacompanies, such technology is allowing even the smallest firms to connect with the qualified people they need to meet their workplace needs.

Project administration

• Project Administrative Assistants: Handle administrative tasks such as managing project documents and coordinating office operations.
• Scheduling Coordinators: Manage project timelines and coordinate schedules for various teams and contractors.
• Contract Administrators: Process and verify contracts, ensuring accuracy and compliance with regulations.
• Data Entry Specialists: Input and update project information and records in company databases.
• Document Control Specialists: Maintain and organize project documents, ensuring they are accurate and up-to-date.

Engineering and construction billing and estimating

• Cost Estimators: Prepare detailed cost estimates for construction projects and bids.
• Quantity Surveyors: Measure and estimate the costs of materials and labor for construction projects.
• Billing Specialists: Process and verify contracts, ensuring accuracy and compliance with regulations.
• Procurement Specialists: Manage purchasing processes, ensuring timely acquisition of materials and equipment.
• Accounts Payable/Receivable Specialists: Manage financial transactions related to project expenses and revenues.

Client relations and customer service

• Customer Service Representatives: Address client inquiries and provide general information about services.
• Client Relations Coordinators: Assist clients with project-related inquiries and provide necessary information.
• Technical Support Representatives: Provide support to clients and internal teams by answering questions and resolving issues.
• Virtual Project Assistants: Facilitate remote meetings and assist project managers with various administrative tasks.
• Bid Coordinators: Collect and verify information during the bidding process, ensuring accurate data entry and record-keeping.

IT and technical support

• CAD Technicians: Create and modify technical drawings and designs using computer-aided design software.
• BIM Modelers: Develop and maintain Building Information Models for construction projects.
• Engineering Data Analysts: Analyze project data to generate insights and support decision-making processes.
• GIS Specialists: Manage and analyze geographical data for construction and infrastructure projects.
• IT Support Specialists: Provide technical support for engineering software and systems, resolving IT issues for staff.

This diverse range of outsourced roles in the Philippines enables engineering and construction organizations to access specialized talent, enhance operational efficiency and drive cost savings, positioning them for success in the competitive industry landscape.