Labor shortages “remain a persistent issue” in the industry, “impacting timelines and productivity,” says Clayco CEO Anthony Johnson. “Changes in policies, client demands and economic conditions require agility and proactive planning,” he adds, which can put more pressure on labor resources to prevent projects from being shelved.

Johnson adds that Clayco, like many firms, is focused on “building resilient teams, investing in workforce development and adapting our operations to stay ahead of where the market is going.” Economists say deployment of Trump’s tariff policy over the next few months will be key in determining that direction.

Shifting Politics, Policies and Priorities

President Donald Trump sent global markets into a tailspin with the April 2 rollout of his tariffs, which he described as a mechanism to bring jobs “roaring back into our country” and to “supercharge our domestic industrial base.”

Trump has since reduced previously announced tariff increases directed at China and the U.K. amid reports of new trade deals with those countries. But economists say that the impact of his policies still is working its way through the global economy.

Inflation fell 2.3% last month, a positive sign and its lowest annual rate since February 2021. Mohamed El-Erian, chief economic adviser at Allianz, told MarketWatch that “it’s too early to say if the damage inflicted is irreversible.” Trump’s intention to levy tariffs to raise external revenue still is “liable to inflict collateral damage,” he added.

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For some Top 400 firms, collateral damage from tariff hikes already is evident. Gabe Rodriguez, Barton Malow vice president of strategy and environmental analysis, says tariffs have “significantly impacted” the No. 35-ranked contractor’s business.

“As a Michigan-based contractor with close ties to Canada, we have been very vigilant about our procurement strategy,” he says. The company identified a tariff risk of $15 million, or 50% of material costs, on a client’s planned purchase of $30 million in curtainwall material from a Canadian facility. Rodriguez says his team found a domestic alternative with a guaranteed price increase cap of $3.9 million that “would not fluctuate with changes in tariff policy.”

Tariffs are adding “serious uncertainty and risk” on a variety of material products, says Jeff Bean, Q&D Construction president of heavy/civil. He expects “suppliers are going to stop honoring their prices and contractors are going to look to owners for reimbursement of additional costs.”

Clayco’s Johnson adds that tariffs have been a double-edged sword for some clients: “On one hand, we have companies looking for reshoring opportunities, clients looking to continue to expand their data center businesses, and domestic companies looking to continue their expansions already underway,” he says. “We also have these same clients looking to us to help them navigate the current tariff constraints, potential cost uncertainties and a challenging lending environment.” He adds that “the same company can be optimistic and growth focused, but also cautious and uncertain about their investment at the same time.”

Market Movers and Shakers

While the America First agenda may boost costs, Bernards CEO Dave Cavecche says the policy could also create opportunities to strengthen domestic industry.

“We’re adjusting our contracting strategies, enhancing scheduling practices and working closely with U.S.-based specialty suppliers,” Cavecche says. “We also offer clients U.S.-made alternatives that still meet quality standards and project goals.” The company is ranked at No. 201.

For Sevenson Environmental Services Inc., ranked at No. 289, CEO Alan R. Elia Jr. says it’s tough to understand pricing ramifications from policies and tariffs and deal with “the escalations post bid or post contract.” He adds that the contractor “and many in the industry” are waiting to understand whether looming Cybersecurity Maturity Model Certification requirements will become contractual mandates. Set to be implemented starting this year, the requirements establish a tiered system to verify that contractors have set up required security measures to protect federal contract data and controlled unclassified information.

“This is a large investment for small businesses to get into compliance, and there are still many unknowns,” says Elia.

What the Numbers Say

All the key construction markets ENR tracks grew between 2023 and 2024, with exception of industrial process, which fell 9.9%. Telecommunications saw the largest growth, up 59.7% from last year; and 188.5% since 2021. Sewer and waste rose 23.7%, power was up 18.9%, oil and gas grew 16.6% and transportation climbed 11.4%. The sewer and waste market has increased 71.7% over the past two years.

Among Top 400 listed firms, HITT Contracting and Holder Construction both reported large revenue jumps driven by work in telecommunications, with the former rising to No. 10 from No. 26 last year and the latter to No. 15 from No. 30. “Unlike consumer spending, which quickly responds to economic changes, the commercial construction industry is buffered by a backlog of funded projects,” says HITT CEO Kim Roy. “As a result, we typically feel the impact of a contraction 12 to 18 months later than other sectors.” But she adds, “We’re fortunate that our clients have entrusted us with healthy backlog increases across the nation, which gives us confidence in a strong year ahead.”

Aristeo Construction jumped to No. 73 from No. 154 related to strong manufacturing sector work, while SOLV Energy joined the list’s Top 100 at No. 66, based on its level of solar energy construction. Performance Contractors returned to the Top 400, at No. 47, after not filing for the past three years. Barton Malow attributes its drop to No. 35 in 2025 from No. 19 last year to completion of a $5-billion project.

Total domestic revenue for Top 400 contractors increased 8.7%, to $567.1 billion in 2024. Firms also reported a strong rise in domestic new contract totals between 2023 and 2024, up 14.4% to $588 billion. Median new contract totals rose 7.7% to $669.02 million.Also, 97.1% of reporting firms say they made a domestic profit, in line with previous years.

Downturn Signs

However there were a few signs of a downturn in the contracting market. Median firm revenue stayed virtually flat between 2023 and 2024, after rising double digits during both previous two Top 400 survey cycles. Of 375 firms that filed both this year and last, 64.8% reported an increase in revenue. The previous reading for that number was 77.3%. Overall, 57.5% of reporting firms say they have a higher backlog than on last year’s list, slightly up from the 2024 Top 400 proportion, but still down substantially from 72.7% two years ago. Just over 25% of firms on the 2025 survey say their backlogs have shrunk.

“The same company can be optimistic and growth focused, but also cautious and uncertain about their investment at the same time.”
—Anthony Johnson, CEO, Clayco

Related to non-U.S. markets, revenue dropped 5.1% between 2023 and 2024, to $33.5 billion from $35.3 billion. This continues a long-term trend of Top 400 Contractors moving away from work outside the country. In 2015, 84 of the Top 400 reported some international general contracting revenue, making up 19% of their total revenue that year. In 2025, 56 firms report non-U.S. revenue making up only 5.5% of the total.

Kitchell Corp. CEO Wendy Cohen says the contractor is “seeing volatility” amid shifts in federal funding and “looming tariff discussions,” which could “drive up costs.” But she adds that, “at the same time, there’s a lot of momentum—clients are eager to build. It’s a complex moment in the market, but one filled with opportunity.”

Bechtel, ranked No. 2, says the firm notes strong demand for general contracting services in nuclear power, LNG, critical minerals and advanced manufacturing. The contracting giant attributes the demand to a global push for cleaner energy and “a sharper focus on secure, domestic supply chains,” adds Peter Nelson, manager of corporate planning.

Internationally, Bechtel, along with Parsons, was awarded key contracts for the estimated $7.2-billion expansion of the King Salman International Airport in Riyadh, Saudi Arabia, which is projected to be the world’s largest airport at completion.

“Our projects are advancing, and we’re seeing strong growth across the business,” he says. “Bechtel is capitalizing on these by investing in our business, expanding our capabilities and strengthening project execution.”

Distinctive Cap for Kentucky Business School  |  By Jonathan Keller

Photo courtesy of Messer Construction Co.

Messer Construction (No. 79) is nearing completion on the Gordon Ford College of Business at Western Kentucky University in Bowling Green. Designed by Gensler, the college’s host building features a 70-ft x 26-ft elliptical copper dome with a 6-ft-dia column. The framing for the dome was prefabricated and assembled on site. Its copper panels were field-measured, cut to fit and soldered together to create a watertight seal. The 113,000-sq-ft structure, on track for LEED Gold certification, will feature a virtual reality simulation space and a stock trading lab with access to Bloomberg terminals. The project is due to complete in fall 2025.

Streamlining Preconstruction

Top 400 contractors say they are finding the greatest project bottlenecks during the preconstruction phase as firms navigate increased budget restrictions with impacts on scheduling, quality, safety and workforce availability.

“We’re fortunate that our clients have entrusted us with healthy backlog increases across the nation, which gives us confidence in a strong year ahead.”
—Kim Roy, CEO,  HITT Contracting

Clancy & Theys Construction Co. says tariff discussions have already started in preconstruction, “but we haven’t gotten to a point where we are dramatically shifting our strategy short of trying to include escalation and tariff clauses in contracts,” says President Baker Glasgow. The firm is ranked No. 148.

Cara Carline, director of preconstruction-estimating at No. 152-ranked Catamount Constructors Inc., adds, “Volatile material pricing, supply chain fluctuations and evolving designs demand precise budgeting and scheduling early in the process.”

Carline says she overcomes such challenges through a proactive data-driven approach.

“By leveraging real-time market insights, maintaining strong subcontractor partnerships and applying value engineering strategies, we identify cost-saving opportunities without compromising quality or schedule,” says Carline. “Just as important, we take the time to develop a deep understanding of our clients’ goals and maintain transparent communication throughout the process. This ensures every decision aligns with their priorities, resulting in smarter, more efficient project outcomes.”

DPR Construction CEO George Pfeffer says the No. 8-ranked firm’s preconstruction challenges are largely related to locking in the design for the production schedule.

“At the same time, there’s a lot of momentum—clients are eager to build. It’s a complex moment in the market.”
—Wendy Cohen, CEO, Kitchell Corp.

“We have aggressive target end-dates and procurement requirements that require different design delivery models, Pfeffer says. “The size of some of our projects and the pace warrant an alternative to the typical schematic design, design development and construction documents.” He adds that the firm advocates for a more “targeted set of design deliverables.”

The CEO contends that this allows DPR Construction to focus on more immediate project requirements, such as site, foundations, structure, MEP and basis of design.

“We’ve realized many benefits from early alignment with owners and design teams regarding what we need and when we need it,” Pfeffer says. “It affects the schedule and allows some flexibility, especially in allowing the design team more time to consider key finish design that can be on a parallel path.”

Estimates are always a challenge in preconstruction, says Jason Henley, CEO of D.F. Chase Inc.

“Historically, the construction industry lags on new technology adoption, but once we have new artificial intelligence technologies in hand, they will allow us to do estimates much quicker with improved accuracy,” he says.“Currently, this technology is only about 80% accurate, but once it is fully developed, AI will make a huge impact on efficiency by cutting estimation time in half.”

Harnessing Technology

Top 400 contractor executives named a variety of hardware and software technology investments they say are having an impact on their business operations and on their ability to do more with less labor.

“Technology is fundamentally transforming the construction industry, and we are fully embracing innovations that enhance efficiency, safety, and sustainability,” says Rebecca Cook, IT manager at Perlo Construction. “This is no longer something we can delay; it now drives our business forward.”

Ranked No. 292, the firm uses project management software to streamline “every aspect of our work”—from preconstruction to project closeout, helping the firm better integrate with all of its departments and collaborators, Cook says.

She adds that use of drones and aerial technology to survey and monitor projects, as well as security technologies and building information modeling (BIM), have become standard components of the firm’s services.

“By adopting these technologies, we improve our operational efficiency and position ourselves to meet the changing demands of the industry,” Cook says.

At Poettker Construction Co., the launch of a drone program has made a significant impact on the contractor’s risk management and efficiency processes, allowing it to perform inspections and identify hazards from the air without the need to have additional labor resources.

“Bechtel is capitalizing on these opportunities by investing in our business, expanding our capabilities, and strengthening project execution.”
—Peter Nelson, Planning Manager,  Bechtel

“As drone use in our company increases, so will the quality of work. We have a fleet of various models, all with different capabilities that cater to the specific needs of a project,” says CEO Keith Poettker. These include thermal scans, topographical information and aerial photography.

“This robust technology is a significant asset to our service offerings and in-house capabilities,” Poettker points out.

With AI added, drones can flag potential project barriers or easily measure stockpile quantities, the CEO explains. “Customers benefit from the technology as well by monitoring the progress of their project virtually.

According to Matt Agner, No. 173-ranked Rodgers Builders executive vice president, virtual reality is helping its clients and end users better visualize their spaces early on.

“This leads to fewer usability-related changes during construction, reducing rework and saving costs,” the executive explains. “We’re also seeing strong results from data analytics tools that pull from multiple sources to create visual and insight-rich dashboards.” He emphasizes that “these tools reduce the need for static reports and help teams make faster, more informed decisions.”

Swinerton Director of Innovation Aaron Anderson expects technology adoption to rapidly advance as more applications used by companies integrate AI. The firm is ranked No. 30.

“The outlook for deciding our own strategic direction and then teaching these tools to execute is helping to grow their acceptance,” Anderson says. “Modeling details, determining scope for buyouts and adapting schedules inside contract constraints are just a few of the amazing, emerging capabilities” in developing industry technology.

Mortenson, ranked No. 22 on this year’s Top 400, has integrated technology to improve productivity across its jobsites. “We’re seeing the advancement of industrialization—particularly in our solar energy and data center projects, which is having a big impact on our business,” says Executive Vice President Maja Rosenquist.

She adds that there is not a singular technology having an impact on the company—but rather “the aggregation of technologies coming together that’s allowing us to standardize tasks, automate work activities and drive lean practices that focus on schedule optimization.”

Rosenquist says Mortenson has also adopted use of drones and GIS, “which is having a significant impact on our civil business.”

Swinerton’s Big Concrete Pour  |  By Jonathan Keller

Photo courtesy of Swinerton

Swinerton (No. 30) is general contractor on the 555 Bryant Street project in San Francisco, a 478,000-sq-ft, 16-story apartment building that is the firm’s largest self-perform job to date in northern California, it says. Swinerton’s concrete team executed a single phase pour of approximately 7,000 cu yd to complete the 6-ft-thick, 32,000-sq-ft mat slab for the footprint of the structure. Working between occupied residential buildings, the team coordinated 70 concrete trucks delivering to five concrete pumps, which poured about 460 cu yd per hour, and also handled the doors, frames, hardware, drywall and millwork scopes.

Leveraging Labor Resources

Top 400 firms say they expect last year’s challenges to carry over into this year, with many amplified by dwindling labor pools and availability.

“Labor scarcity can impact our ability to scale quickly, meet aggressive schedules and deliver the level of quality we expect on every job,” says Rick Davenport, president and COO of Samet Corp. “This challenge is not unique to us—it’s systemic in the AEC industry.”

In response, the firm is doubling down on proposed solutions, such as investing in workforce development and supervision, he says, “ensuring we have well-trained, engaged field leaders who can support our teams and trade partners,” and on evolving firm culture to prioritize trade appreciation and worker welfare.

According to Davenport, that includes “everything from recognition programs to building covered wellness areas on the jobsite where our trade partners can take breaks from the heat, warm their food and have a clean place to sit and enjoy their lunch.”

The Trump administration crackdown on undocumented U.S. workers and its immigration policies more generally have added to labor pressures for some Top 400 firms as they look to recruit and retain talent internationally.

“We’re closely monitoring labor and immigration changes as they directly impact our workforce,” says Vincent Lai, vice president of estimating at Bernards. “Our proactive approach includes mentorship, training programs, competitive wages and fostering a diverse and inclusive workplace. These efforts help us retain and grow talent while preparing for future shifts in workforce policy.”

Q&D Construction CEO Lance Semenko thinks the company’s internal training center will be a game-changer for how its employees gain new skills and are promoted through the ranks.

As for Trump’s crackdown on undocumented workers, he says: “For us this is not going to affect the workforce as all our employees have to be vetted for the right documentation of being legal citizens.”

Shifts in labor and immigration policies will continue to shape workforce availability across the construction industry, predicts Moss CEO Scott Moss, “especially in sectors like utility-scale solar, where demand is rapidly increasing and there is a huge need for skilled labor.”

To address such challenges, Moss says the company has launched a first-of-its-kind solar apprenticeship program in partnership with the Florida Dept. of Education, a two-year program that includes hands-on training, technical instruction and a focus on leadership and communication.

Graduate solar installers earn a nationally recognized certificate, Moss notes, adding that the accreditation has expanded benefits for hourly employees.

“Together, these efforts strengthen our workforce and help ensure Moss is ready to meet the demands of a changing labor landscape,” says Moss. The firm is ranked No. 41.

Innovating Under Pressure

In the face of market challenges, Top 400 firms say shifting market conditions have been an opportunity for them to innovate operations and hone the work they do best.

Knutson, ranked. No. 263, says it secured notable projects in the education and health care sectors over the past year came by “concentrating our efforts in markets where we excel.”

“Labor scarcity can impact our ability to scale quickly, meet aggressive schedules and deliver the level of quality we expect.”
—Rick Davenport, President,  Samet Corp.

Joeris General Contractors President Burton Hackney says the firm has been able to scale operations while maintaining its culture and talent. “Through highly intentional talent development initiatives and leadership mentoring programs, we’ve successfully preserved our collaborative, client-focused culture,” he adds. The firm is ranked No. 113 this year.

Jim Radich, Granite Construction chief operating officer and executive vice president, says the firm has had numerous projects on which it has been able to bake innovations into the design and permitting stages to reduce risk and save time and money. The company, ranked No. 39, says it is continuing to focus on early contractor involvement and qualifications-based selection procurement.

“All markets are facing ongoing uncertainty around geopolitical issues, tariffs, interest rates supply chain disruptions, and labor constraints,” says William "Bill" H. Goodrich, Chairman and CEO of LeChase Construction Services LLC. “Rather than take an alarmist view, we choose to be realistic and responsive in how we navigate the challenges,” he point out.

As the No. 128-ranked company did during the COVID-19 pandemic, Goodrich says it is using this period of uncertainty to deepen its partnerships. We remain confident in our ability to adapt and support our clients through whatever comes next," he adds.