After enduring four years of pandemic and post-pandemic challenges encompassing high interest rates and supply chain disruptions, the construction industry now stands on the brink of significant growth. According to ConstructConnect, forecasts suggest a 6.9% increase in total U.S. nonresidential starts and a 12% rise in total residential starts in 2025. We reached out to local construction industry professionals to gain insights into their expectations for the upcoming year and the emerging building trends at the local level.

Optimism Amidst Challenges

Kyle Sayers, president of LeChase Construction Services founded in Rochester in 1944, expresses overall optimism about 2025 across all markets. "We're witnessing remarkable strength in our clients, and our backlog is robust. We're truly excited and encouraged by the year ahead," he says.Locally, LeChase sees strength in multi-unit housing, along with sustained growth in the life sciences and healthcare sectors, including the outpatient medical market. Sayers notes that supply chain issues for construction materials have largely stabilized. "Although certain complex components now have longer lead times, we're in a predictable state where manufacturers can provide accurate delivery timings," he explains.A trend that Kyle Sayers looks forward to exploring deeper in 2025 is the increasing use of artificial intelligence. Data from 360iResearch indicates that the AI in construction market size was estimated at USD 1.52 billion in 2023, is expected to reach USD 1.92 billion by the end of 2024, and will reach USD 8.42 billion by 2030.Among the various applications of AI in construction are project management, quality control, job site safety, parametric design, and drones utilizing AI software. "We aim to understand the optimal use of AI in the construction industry. Our company has several initiatives involving AI and we plan to expand on them. Hence, we're investing heavily in personnel with relevant skills and the accompanying technology," Sayers emphasizes.

Pike Construction Services: Integrating AI

Pike Construction Services, a fifth-generation construction company founded in Rochester in 1873, is also focused on integrating AI into its practices. A few months ago, Pike published a report on the transformative impact of AI on the construction industry, detailing the long-term benefits beyond immediate cost savings and efficiency improvements. These include more accurate project estimates, enhanced client satisfaction through timely deliveries, and innovation in safety and sustainability.Ed Kurowski, executive vice president of Pike Construction Services, highlights the importance of technology. "In terms of technology, the widespread use of drones and robotics in the field and ensuring their availability to our superintendents will be a significant driver for us in 2025," he says.Another technological tool Kurowski plans to expand at Pike in 2025 is the use of digital twins to enhance project visualization and decision-making. He explains that in the construction industry, a digital twin is a virtual model of a building that accurately represents the actual product. "We're using digital twins in the field to ensure projects are constructed exactly as intended. Manufacturing has been using this process for some time, but the construction industry has only started in the last five years," Kurowski notes.Pike is also leveraging technology to bridge the experience gap between new and experienced employees. "We're excited about the year ahead. In the first quarter, we'll be starting many projects that were delayed due to the cost of the dollar," Kurowski says.

GLS Construction: Focus on Cost

Garett Schalge, owner of GLS Construction, observes a continued focus on cost in the region's residential construction space heading into 2025. "People are becoming more value-conscious and seeking better value for their money. They want to ensure that their investments have long-term value and hold their worth," he says.Schalge, with 30 years of experience in the construction industry and having opened his business in west Monroe County in 2023, notes that customers are increasingly focused on energy efficiency and choosing materials that will save them money in the long run. Whether it's for new construction or other services like roofing, siding, flooring, and windows, customers are making eco-friendly choices.At the same time, Schalge states that both commercial and residential customers are demanding eco-friendly options and materials produced using sustainable practices to reduce environmental impact. "People want to see green. We're seeing more companies marketing themselves as green, and some of the suppliers we use have always been green but are now emphasizing it more," he says.