2025 CIRT Sentiment Index: First Quarter
Get the pulse of the construction industry's top CEOs with our first quarter 2025 sentiment index and current trends from the Construction Industry Round Table (CIRT).
Contractors & Construction Services
FMI’s team of expert consultants works only with companies in the built environment. Our extensive and specialized industry knowledge mean that we’re ready to start helping you improve your business on day one.
Key Trends in These Sectors
All types of contractors across the built environment have engaged FMI to implement tailored solutions for their particular needs, markets and challenges. Contractors leverage our investment banking teams to maximize value when they're looking to grow by acquisition or sell their businesses.
While general contractors and construction managers operate differently, they face many of the same business challenges, such as managing and tracking projects, balancing risk and cash flow, and retaining key talent. Rising material costs, economic uncertainty and the potential for inflation continue to be top of mind for those trying to optimize their businesses and position themselves for growth.
Heavy civil and infrastructure contractors remain one of the strongest sectors of the construction market, particularly as the Infrastructure Investment and Jobs Act (IIJA) continues to drive projects at an accelerated pace. Many heavy civil firms are optimistic about their prospects, with most sectors showing improved expectations. Backlogs continue to grow and margins for heavy civil firms are improving.
That doesn’t mean the path ahead will be easy. Competition continues to increase, and many firms are reaching capacity with labor remaining a large limiting factor. Top risks include the lack of skilled labor, cost increases for materials and equipment, and a potential economic slowdown.
Managing labor productivity, sourcing materials and optimizing equipment are challenges that require focus and discipline. This is particularly true for specialty trades contractors.
Training is not enough to improve performance. A strategic approach to improving direct cost management is imperative for all specialty trade contractors. Additionally, there will also be greater demand for these specialty trade contractors as infrastructure investment increases and competition to complete projects remains high.
Improving the bottom-line profitability begins with superior controls and planning at all levels within the firm.
Capital plans by owners of power, gas and communication infrastructure continue to grow. To fundamentally improve U.S. infrastructure, we need investment that is growing faster than the rate of inflation.
Combining the IIJA, the Inflation Reduction Act (IRA), the Drinking Water and Wastewater Infrastructure Act, and private company investment, the dollars available for repair of utility infrastructure have never higher. The challenge will be finding qualified people to manage and constructe these projects.How We Help
- Assess your current market and operations to discover strengths and areas for improvement.
- Understand your clients’ unmet needs and their perceptions of your company.
- Evaluate your competition and identify the unique differentiators that separate your firm from others.
- Create a clear road map that capitalizes on your strengths and aligns your organization.
- Understand and develop your competitive advantages to improve your win rate and grow your business.
- Diversify your business by entering new markets or segments or offering new services based on data-driven insights and market research that accelerate success and minimize risk.
- Optimize the performance of your estimating function to capture more of the right kinds of work.
- Create strategies to reduce dependence on hard-bid markets by adding alternative procurement capabilities. Assess your market opportunities and then build new service offerings and increase organizational capacity to execute on those.
- Develop a competitive advantage that focuses on clients' key issues, high-value solutions and becoming a trusted partner.
- Create consistent performance and outcomes across projects by understanding your operations and processes.
- Develop tools and metrics to help monitor your business and continually improve.
- Align asset strategy and fleet management practices with operational requirements.
- Establish consistent offensive and defensive risk management practices that protect the balance sheet and the enterprise.
Leadership and Organizational Development
- Create leadership and talent development plans that build exceptional people across the organization.
- Align your culture, strategy, systems and processes around a clear vision.
- Incorporate industry best practices for your leaders to drive business.
Benefits
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