Profitability is essential for any business, but in construction, it's the difference between staying competitive and falling behind. For project-based operations with tight timelines, fluctuating material costs, and complex subcontractor relationships, increasing profitability ensures long-term sustainability and fuels future growth. Profitability means generating more revenue than you spend, and in construction, that requires strategic planning at every phase of a project. It’s about executing projects efficiently, managing cash flow effectively, and making smart decisions that reduce waste and maximize value. Here are four key points to consider when focusing on boosting profitability.

In the construction industry, managing cash flow isn’t just important, it’s the backbone of successful project execution. Whether you're overseeing a small residential build or a large-scale commercial development, cash flow—the timing of money moving in and out—is what keeps operations running, crews paid, and materials ordered on time.

The national construction industry added 11,000 jobs on net in April, according to data released today by the US Bureau of Labor Statistics. On a year-over-year basis, industry employment has expanded by 143,000 jobs, or an increase of 1.7%.

National nonresidential construction spending decreased 0.5% in March. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.25 trillion for the month and is up year-over-year.

Looking at data from thousands of invoices, we discovered a clear trend: shops that send invoices within the first 10 days post-job are significantly more likely to be paid faster.

In his April 2025 "Construction Briefs," Ed Zarenski examines the potential impact of tariffs on construction costs, noting that while tariffs directly affect imported materials, domestic producers often adjust their prices in response, leading to broader inflation within the industry. The article also highlights the strain on energy grids from the rising demand of data centers, particularly in Virginia, where data centers consume 25% of the state's electricity supply.

The national construction industry added 13,000 jobs on net in March, according to data released today by the US Bureau of Labor Statistics. On a year-over-year basis, industry employment has expanded by 143,000 jobs, an increase of 1.8%.

National nonresidential construction spending increased 0.3% in February. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.255 trillion for the month and is up year-over-year.

A recent article on edzarenski.com compares forecasts from various sources on nonresidential building construction spending over the past several years. It highlights the significant variation in projections and emphasizes the importance of understanding the methodology behind each forecast, as differences in inflation adjustments, market segments, and data sources can lead to different outlooks. Ultimately, the article underscores the need for construction professionals to look beyond single forecasts and consider multiple perspectives when planning for the future.

Despite economic uncertainty, a major downturn may not be on the horizon for the construction industry. At ABC Convention 2025, leading economists and industry experts shared key insights on what’s driving construction demand, workforce trends, and strategies to navigate shifting market conditions. Their message? Smart planning and adaptability will be critical for success in the years ahead.