How Controllers Can Create Competitive Advantages in Q4 2025

The construction industry faces a convergence of pressures in Q4 2025. Skilled labor remains in short supply, materials and supply chains are unpredictable, compliance demands are growing, and cash flow is under strain. On top of that, digital adoption is still lagging and the broader economic outlook remains uncertain.

For controllers, these aren’t abstract issues. Each challenge directly affects project budgets, schedules, and liquidity. But more importantly, controllers are in a unique position to build resilience by pairing financial rigor with operational foresight. Here’s a breakdown of the key challenges and the strategies controllers can use to address them in real time.

Construction Labor Shortages

The U.S. construction industry is projected to need more than 439,000 additional workers in 2025 to meet demand. Retirements, worker churn, and immigration uncertainty have tightened the labor pool even further. The results are rising wages, higher overtime premiums, and project delays that stretch revenue recognition and cash flow.

Controllers can mitigate this by supporting digital onboarding and skills tracking to shorten ramp-up times. Standardizing processes and tools ensures new workers get productive quickly.

Partnering with trade schools and apprenticeship programs builds a pipeline for the future, while retention initiatives such as training, recognition, and clear career paths reduce turnover. Workforce planning tools can also help identify efficiency gaps and forecast labor needs across projects.

Construction Material Costs and Supply Chain Disruptions

Material prices have moderated since the peaks of 2022 and 2023 but remain volatile, especially for steel, copper, and other core inputs. Tariffs and trade policy shifts have added more uncertainty. Contractors also continue to face long lead times and unpredictable deliveries, raising risks of project overruns.

Controllers can push for contracts with escalation clauses that allow flexibility if prices rise. Supplier diversification, including nearshoring and local sourcing, can reduce dependency on single suppliers.Tracking commodity price indices and inventory turnover in real time helps identify risks early.

Where possible, small inventory buffers of critical materials can provide breathing room without tying up too much capital. Value engineering and preapproved substitute materials also give firms flexibility when shortages occur.

Cash Flow Pressures

Cash flow remains one of the biggest stress points for many companies. Progress payments are often delayed, retainage withholds 5 to 10 percent of payments until completion, and disputes over change orders can stretch receivables. For contractors, this often creates liquidity crunches that force them to rely on credit lines or miss out on new project opportunities.

Controllers can maintain rolling 12 to 18 month cash forecasts that are updated monthly or even biweekly. Negotiating milestone-based billing also helps spread inflows more evenly. Retainage balances must be tracked closely, with partial releases negotiated when possible.

Strong receivables management with timely invoicing and disciplined collections reduces exposure. Financing options such as credit lines or bonds should be stress-tested in advance so liquidity is not reactive but planned.