Technology is improving productivity and profitability for small contractors as the shape of the building industry continues to change. 

Technological advancements are reaching across all industries at a staggering pace. We’ve seen the changes dramatically unfold in the architecture, engineering and construction sectors over the past few decades. The benefits of this growth are creating momentum in the building and construction sector, especially for those adapting. In 2025, new technology is continuing to improve performance and profit margins for small contractors. In this article, we’ll explore a bit more in depth the trends you should know about in the coming year.  

Construction is a key contributor to the U.S market. At scale, the construction industry is responsible for more than $2.1 trillion worth of structures each year (AGC). Despite the upswing in projects, increase in jobs and continued growth, the industry isn’t an easy one to be in. Small contractors face many challenges. It’s difficult to hire the right people, let alone keep them long enough to avoid the high cost of turnovers. The quality labor shortages are far reaching across the industry. Another difficulty is keeping up with document management in a modern world, and then there are cash flow and communication problems abound. Yet, at the end of the day project management and their teams are resilient and seem to get the job done well. Technology is making its play to help ease some of the burdens. 

Tech Trends Every Small Contractor Should Know: 2025

The tools that are driving things forward for building contractors are linked to similar trends that are transforming the global outlook for 2025. These trends align with The Future of Jobs report published by The World Economic Forum, which outlines that we’re at the beginning of a fourth industrial revolution. 

At first they are simply buzzwords, now the industry is becoming fast friends with the idea of artificial intelligence (AI), generative AI (Gen AI), machine learning, the internet of things, cloud technology, augmented and virtual reality, 3D modeling, unmanned aerial vehicles (UAV aka drones), and mobile internet capabilities. These future technologies are disrupting even the oldest professions. 

For small contractors facing the many challenges  today's economy offers,  solutions could be found in new approaches to optimize projects from kick-off. Adopting technology such as virtual design and construction (VDC) has the advantage of planning and analyzing all aspects of construction plans before anyone breaks ground. 

Let’s take a look at the technology being adopted by building contractors and the potential this new tech promises. Some of these are: 

• 3D modeling and augmented reality
• Reality capture technology
• Lean construction software such as web based project management software and VDC 
• Unmanned aerial vehicles (UAVs), otherwise known as drones

3D Modeling and Augmented Reality Improve Client Engagement

3D modeling combined with virtual and augmented reality offer captivating engagement with clients through visualization, in-depth insights of schematics for better project planning and coordination.

3D modeling and augmented reality enables enhanced visualization with precision never seen before. Architects, engineers and the construction team can see the project at different stages before it even begins. For those in the industry, including decking and railing contractors, 3D modeling and augmented reality can be shared with clients in real-time, increasing accuracy of the project and reducing costs.

Use in construction safety is another area that puts VR to use. VR and MR systems can offer engaging ways to train workers, students, and managers in hazard identification. For example, one study in which university students navigated a VR construction environment as “Safety Inspectors” tasked with identifying as many hazards as possible (e.g., unsafe material storage, uncapped rebar) within a time limit. Similarly, a VR system in which users performed a site survey with the goal to identify electrical hazards.

We see it’s clear that in 2025, 3D modeling and augmented reality for client interactions as well as other areas of project planning and construction safety will only continue to grow. 

“3D laser scanners can capture some really precise measurements of the existing space where the deck will be built. This ensures accurate planning and design - Ronald Gibas at Denver Deck Builders” 

Reality Capture: Transforming the Physical World Into Digital Assets. 

Next, let’s take a look at reality capture technology. This tech takes the physical world and turns it into digital data. This is the kind of data that has many uses for everyone involved on the project. Think of the implications this could have when it comes to planning, design, construction and your operations. 

Contractors utilize RCTs to manage projects more efficiently through early issue identification and tracking. These practices minimize potential delays and costly rework, which promotes the completion of projects on-time and within budget. (Elliot, Oblina 2023) 

This is the kind of technology that is being adopted more and more. As an industry, we get a better take on the existing and as-built conditions and this helps contractors make better (more informed) decisions. Reality capture technology is swiftly being adapted because it supports modernized workflows, it helps create straight-forward decision making, and optimized results. Small contractors can save time and money when it comes to site assessments. 

“Reality capture data significantly reduces rework by providing highly accurate as-built documentation” -  industry expert at Avvir”

Boosting Efficiency with Lean Construction Software

If we’re going to come close to meeting clients' needs in 2025, it will require solving increasingly complex problems. Lean construction software is a tool that helps small contractors develop solutions to even modern industry challenges. 

Virtual design and construction (VDC) is technology that creates digital models of buildings and sites. Small contractors, engineers and architects use VDC models to visualize and plan projects. VDC has capability for planning processes, schedules, and budgets. It also allows companies to scrutinize construction plans from the ground up before they even break ground. 

Software like this helps to improve site safety, project costs, quality, project management, turnaround times, employee retention, and ultimately client satisfaction. Now, and in the years ahead it will be a mainstay for construction projects. What once was new technology, at some point also becomes old hat (right now it’s the favorite). 

Drones: A Game-Changer for Decking Site Surveys and Inspections

From ancient methods of getting the angles systematically precise to our modern survey approaches — site surveys have been done through the ages. Now, the approach is lifting off. In 2025, drones otherwise called unmanned aerial vehicles (UAVs) will continue to be used more and more. 

We can use drones in decking and railing site surveys to help check for defects and collect important visual data. The drone captures the data and can share it immediately with real-time results.

What we see are these trends in tech will be leading the way in 2025.  We’re improving productivity and profitability on all sizes of projects. Why shouldn't the construction industry be at the forefront of a tech revolution? We change the landscape of the world around us, and part of that is changing the landscape of the tools we use to do this. Not all small contractors are ready to adapt. Some may use CAD, modeling and drones, while others are just getting started. No matter where you stand with these future technologies, it’s clear that they are becoming more widely adopted.

“As more people are using this hobby to promote their businesses, other small drones are coming onto the market. Now my friends in other trades, such as landscaping, painting, and roofing, want me to photograph their projects from the air as well. - Ron Spillers owner at West Coast Decks”

It’s an era of opportunity. 

Here we are. In an era of opportunity. It’s a landscape of connectivity, modern technology like AI, and Augmented/VR. In our personal and professional lives we continue to open up to new opportunities. In business this will help us to continue to improve their productivity and profitability.

Small contractors, ready or not, we all have an opportunity to explore what the leading tech trends of 2025 mean. Like all revolutions, some of the technological advances will take hold with or without us. Perhaps the benefits of advancing tech will revolutionize how small contractors, architects, and engineers conduct business in 2025, and beyond.