Association Data: Labor Shortage & Subcontractor Strategies for 2025

Construction associations have been warning about labor shortages for years, but 2025 is shaping up to be the most challenging environment yet. Subcontractors aren’t just struggling to find skilled labor; they’re struggling to keep up with bidding, training, on-site work, and the increasing administrative load that comes with running a modern trade business.

Recent data from leading construction associations paints a clear picture: labor shortages are here to stay. But subcontractors aren’t standing still — they’re adapting with new strategies, new processes, and a growing willingness to adopt tools that help them operate more efficiently.

Here’s what the latest association data shows, and what subs are doing in response.

The Skilled Labor Shortage Is Worsening, Not Improving

Construction associations report:

• Fewer young workers entering the trades
• High retirement rates among experienced workers
• Rising wage competition in metro markets
• Increased project demand in commercial and industrial sectors

This creates a squeeze from both sides: more work is available, but fewer people are available to do it.

Subcontractors shared frustrations such as:

• Turning down work due to staffing constraints
• Relying on overtime and weekend work
• Difficulty finding qualified estimators
• Pressure to maintain productivity with smaller teams

The result? Every person on the team has to handle more work than ever before.

Subcontractors Are Increasing Bid Volume to Protect Backlog

Labor shortages don’t stop GCs from sending ITBs. In fact, bidding volume has increased for most subs.

Association data suggests subcontractors are:

• Bidding more frequently to ensure steady work
• Prioritizing repeat GC relationships
• Pursuing smaller or mid-market projects for stability
• Expanding service divisions to diversify revenue

Combined with labor shortages, this creates a difficult mix: more bids, fewer people to manage them.

Admin and Estimation Workloads Are Stretching Teams Thin

With fewer hands available, back-office and estimation tasks become disproportionately difficult.

Subcontractors are reporting:

• Too much time spent in email
• Difficulty keeping track of deadlines
• Slow turnarounds when teams are understaffed
• Reduced accuracy when estimators are overloaded

Even firms with solid field crews are struggling with administrative capacity.

For many, the bottleneck isn’t field labor; it’s the office workload required to win work in the first place.

Subcontractors Are Turning to Workflow Tools to Increase Efficiency

Association data shows a clear trend: subcontractors are increasingly open to tools that help them streamline processes, not just field operations.

Popular strategies include:

• Automating bid intake
• Centralizing bid tracking
• Improving estimator handoffs
• Reducing redundant inbox work
• Using technology to prevent missed opportunities

This shift aligns with what we saw in the Riffle Subcontractor Survey: subs are not adopting technology for the sake of “innovation” — they’re adopting it because they’re overwhelmed.

The Most Forward-Looking Subs Are Building “Lean Admin” Models

Labor shortages are forcing subcontractors to rethink how they work.

Forward-thinking subs are:

• Reducing dependency on individual inboxes
• Documenting standardized bid workflows
• Sharing visibility across office and field
• Using tools to ensure nothing falls through the cracks

These leaner, more efficient back-office models will define the next decade of subcontractor operations.

What This Means for Subcontractors

Labor shortages aren’t going away, and bidding demands aren’t slowing down.

This means subcontractors need tools and processes that:

• Reduce administrative drag
• Give visibility into every active bid
• Help small teams operate like larger ones
• Prevent missed deadlines or lost ITBs
• Allow estimators to focus on the work, not the workflow

Efficiency isn’t a “nice to have” anymore; it’s the only way to survive a labor-constrained market.

Riffle was designed to support exactly this need.

If labor shortages are putting pressure on your workflow, Riffle can help you bring clarity to your bidding process.

Join the waitlist at rifflecm.com.