Higher Sub Rates May Finally Solve Labor Shortages
Increasing subcontractor rates in 2025 transform the construction industry by tackling persistent labor shortages.
By Cayla McCully
5 min read
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Articles tagged with rates
Increasing subcontractor rates in 2025 transform the construction industry by tackling persistent labor shortages.
The 2025 construction labor shortage elevates costs, prolongs timelines, and tests builders and homeowners. Scarce skilled trades necessitate strategic planning, prompt hiring, and adaptable schedules. Understand the drivers of increasing labor rates and methods to maintain project efficiency and affordability.
Labor shortages in construction can disrupt operations, but strategic contractor hires provide a solution.
A tightening labor market in 2025 will push construction wages up by 10 to 20 percent, complicating schedules and budgets. Factors such as an aging workforce, insufficient apprenticeships, and surging project demand exacerbate the shortage. Contractors can navigate these challenges by prioritizing early recruitment, targeted training, technology adoption, and transparent financial planning to preserve quality, safety, and client relationships.