3 Key Takeaways from the AGC 2025 Outlook Report

AGC’s 2025 Outlook reveals key construction trends: labor shortages, tight margins, and uneven tech adoption. What subcontractors should know.

Heidi Sullivan
October 29, 2025

Each year, the Associated General Contractors (AGC) release their construction outlook. The 2025 report highlights challenges and opportunities for subcontractors. Here are 3 key takeaways from this year’s report:

1. Labor Shortages Are Intensifying

The skilled labor pipeline isn’t keeping up with demand. Rising wages and staffing shortages mean productivity-boosting tools aren’t optional — they’re essential.

2. Margins Remain Tight

Material costs and bidding pressure squeeze profits. Digital estimating and cost-control tools help subcontractors protect margins where manual processes fall short.

3. Digital Adoption Is Uneven

Large contractors are pulling ahead with tech investments. Mid-sized subs risk losing bids if they lag behind. Early adopters can differentiate and win work.

Conclusion

The AGC 2025 Outlook confirms what we’re seeing in the field: construction is at a tipping point. Labor, margins, and tech adoption will define competitiveness.

For subcontractors, the question isn’t if to go digital in 2025 — it’s how fast.

Heidi Sullivan
Heidi is the Fractional CMO for RiffleCM. A marketing and product leader with over two decades of experience in growing B2B SaaS businesses, she is passionate about helping small to medium size businesses get to the next stage of growth.

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Eliminating Manual Errors in Construction Bids

Common questions about reducing errors and improving accuracy

What causes most manual errors in subcontractor bids?

Manual errors usually come from disconnected workflows — things like outdated spreadsheets, inconsistent templates, or rekeying the same data multiple times. When project info lives across emails, texts, and PDFs, small mistakes add up fast.

How can software help reduce bidding mistakes?

Purpose-built estimating software automates repetitive tasks like data entry, quantity takeoffs, and revision tracking. Instead of chasing down the latest drawings or retyping costs, your team works from one centralized, accurate system — cutting errors before they happen.

Is automation complicated to set up for small subcontractors?

Not with modern tools like Riffle. You can connect your email or ITB inbox in minutes, and automation starts working behind the scenes — identifying bid invites, tracking updates, and helping you prioritize the right opportunities. No IT department required.

How much time can automation actually save?

Most subcontractors save 6–10 hours per week just by eliminating manual re-entry and version confusion. That’s more time for estimating the next job, reviewing margins, or simply getting home on time.

Does automating bids mean losing control over pricing?

Not at all. Automation handles the busywork — you keep full control over pricing, scope, and judgment calls. Think of it as an assistant that gets the numbers right so you can focus on strategy.

How do I know if my team is underspending or overspending on software?

A good rule of thumb: most subcontractors invest 1–3% of annual revenue in digital tools. If you’re still running bids manually or using outdated systems, the real cost might be hidden in lost time and missed opportunities.

Why does accuracy matter so much in bidding?

Every error compounds — one missed line item or miscalculated rate can erase your entire profit margin. Accuracy doesn’t just win jobs; it protects your business from losses you don’t see coming.

How does Riffle help subcontractors eliminate manual work?

Riffle automates your bidding and project workflows from start to finish. It finds ITBs in your inbox, organizes bid invites, fills in estimating data, and tracks updates — helping subcontractors bid smarter, reduce errors, and grow revenue.

We Understand the Bottlenecks for Subs

My biggest weakness has always been follow-ups—I’m just not great at it. If I had a built-in reminder feature to follow up on projects automatically, that would be a game-changer. I’ve gotten better, but I could still use that extra nudge.

Bryan Dolgin
Project Manager, Division 10 subcontractor

Quoting can be chaotic. You have five different contractors sending out the same bid invite, each named differently. We end up with duplicate bids on the board or miss one entirely because it was labeled another way. There is no clear procedure when invites come in from multiple people.

Dustin Siegel
Project Manager, Division 10 subcontractor

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