Challenges Facing Construction in 2025 | Ryder Services Ltd

Challenges Facing Construction in 2025: What Industry Professionals Need to Know

The construction industry continues to face complex and evolving challenges. While demand remains strong across commercial, infrastructure, and housing sectors, the pressures on delivery, cost, and compliance are mounting. For industry professionals, staying informed and adaptable is key.

Here are some of the most significant challenges shaping construction in 2025.

1. Materials Availability and Cost Fluctuations

While supply chains have improved since the disruption of recent years, price stability is still an issue for core materials such as timber, steel, and concrete. Global demand, shipping delays, and regional availability continue to influence costs.

Procurement strategies increasingly rely on supplier relationships that can offer both consistency and flexibility - especially for bespoke or time-sensitive orders.

2. Workforce Shortages

Skilled labour remains in short supply. An ageing workforce, fewer apprenticeships, and increasing competition across sectors are creating gaps on sites across the UK.

This is leading many contractors to streamline site operations - relying more on prefabricated or pre-prepared materials to reduce on-site workload and improve efficiency.

3. Sustainability Expectations

Sustainability is no longer an added bonus - it is now a baseline expectation. Projects are under greater scrutiny to demonstrate responsible sourcing, waste reduction, and environmental compliance.

As a result, there is growing demand for materials that meet recognised standards such as FSC® and PEFC, and for suppliers who can support a low-waste, low-carbon approach throughout the supply chain.

4. Tightening Project Timelines

Delivery expectations are higher than ever. Whether in housing, infrastructure, or civils, project schedules are compressed, and delays can have serious knock-on effects.

This places added pressure on procurement teams to source materials quickly and efficiently, often requiring short lead times and reliable logistics - especially for remote or multi-phase sites.

Looking Ahead

These challenges are unlikely to disappear in the short term. However, the industry is also showing strong signs of resilience and adaptation. Contractors and procurement professionals are finding smarter ways to plan, source, and deliver - often by working with suppliers who understand their sector, can respond quickly to changing needs, and offer practical solutions.

At Ryder Services, we continue to support the construction sector with a wide range of materials, in-house processing services, and flexible supply options. Our aim is to simplify procurement and help our clients keep projects moving - whatever 2025 brings.

To find out more about how we support the construction sector, get in touch with our team.