As we kick off 2025, there are many reasons to be optimistic about Wisconsin’s future and commercial construction will continue to play a significant role in its success. From $6.9 billion in federal funding to major regional projects including public transit improvements and water treatment upgrades, investments in infrastructure bode well for our industry and our local communities.
These positive developments also mean that Wisconsin’s commercial construction market is still poised for some growth, though less than last year, according to industry experts. Here at Riley, we are monitoring some 2025 industry trends that will bring a mix of opportunities and challenges.
Strong economic tailwinds
Lower interest rates coupled with robust consumer spending and infrastructure investments advanced by the Infrastructure Investment and Jobs Act (IIJA) will contribute to a continued need for commercial space across various sectors. Industrial and manufacturing are especially seeing increased demand in Milwaukee, Madison, and Green Bay. Due to the e-commerce boom, companies are strategically locating facilities to streamline supply chains. This leads us to believe that construction for distribution and warehouses will hold steady.
Overall, construction contractors are generally optimistic about certain private-sector and most types of public-sector work such as manufacturing plants and education, according to a new survey by the Associated General Contractors of America (AGC) and Sage. Yet there are still worries about labor shortages, material prices and potential tariffs, the report says.
Riley is especially monitoring discussions about potential tariffs and how they may impact material costs and the supply chain in 2025. While it’s hard to predict where things will land, our preconstruction and estimating team is preparing for this by planning early and cautiously to ensure that we have contingencies for potential price increases or delays.
Thriving workforce development 
If there’s one thing that we are particularly excited about here at Riley, it’s Wisconsin’s commitment to training commercial construction’s next generation. It’s especially crucial at a time when the industry faces a talent gap. Over 40% of the current U.S. commercial construction workforce is expected to retire over the next decade and it’s estimated the industry will need to add nearly 454,000 new workers in 2025 to meet industry demand.
Technology will help address this gap by automating tasks and attracting younger workers. Upskilling existing employees is equally important to retain experience and knowledge. It’s good news that Wisconsin continues to shine with a five-year construction job growth of 4.4% and a commitment to career and technical education. Today, we are seeing a 97% graduation rate for students in these programs and 91% of post-secondary students are placed in careers or apprenticeship programs.
Advanced tools like AI, drones, and data-driven models are appealing to young professionals, positioning construction as a tech-driven career choice. Companies investing in mentorship and training programs foster collaboration between seasoned workers and young professionals, ensuring innovation and continuity.
Riley is committed to workforce development through its partnerships with some innovative local programs, including AGC’s ACE Academies, a high school-level education program that integrates academia with technical education in construction-related fields. Riley will continue to offer high school and college internships and is excited to again host its annual Build Trade Careers Summer Camps in collaboration with the Kenosha Unified School District.
Transformative tech innovations
The construction industry is undergoing significant changes, driven by advancements in technology that are redefining project planning, management, and execution. While tools like Building Information Modeling (BIM) have matured, newer innovations such as artificial intelligence (AI), digital twins, and workforce transformation are leading the way. These advancements are reshaping how the industry operates and prepares for the future.
AI is revolutionizing the industry with predictive analytics and real-time decision-making tools. Beyond improving efficiency—it’s transforming how projects are designed, planned, and executed. AI systems improve safety by identifying hazards, automating repetitive tasks, and reducing human error. They also offer proactive solutions by simulating design changes to assess their impact on timelines and budgets. Strategic use of AI gives companies an edge with faster delivery, lower costs, and higher quality.
Digital twins, virtual replicas of physical assets, are emerging as key tools in construction. They allow stakeholders to simulate and analyze projects before construction begins, improving design accuracy and building performance. In 2025, digital twins are becoming more widely used as project owners recognize their value in reducing errors and enhancing collaboration. Early adopters use them to visualize projects under real-world conditions, leading to better decision-making. However, widespread use requires education and advocacy. Companies that demonstrate the benefits of digital twins through case studies and workshops are driving adoption and making them a standard in complex projects.
Riley is always looking at the ever-changing commercial construction landscape and staying abreast of trends to best evaluate how to deliver the most efficient and cost-effective projects. To learn more about emerging trends in the construction industry, contact Riley President, Ben Kossow, or Construction Technology Manager, Kevin Kendellen, at trends@rileycon.com.