How Contractors Can Compete in 2025: AI, Costs & Consolidation

Construction Champions Podcast
Oct 2
3 min read

Construction is entering one of the most disruptive eras in decades. Material prices have surged more than 40% in just five years. AI data centers are pulling electricians out of other industries. Private equity is consolidating trades at a pace that leaves independents vulnerable.

The question isn’t whether things are changing. it’s whether contractors are ready.

In this special edition of the Construction Champions Podcast, host Ron Nussbaum sits down with Scott Cannon, CEO of BigRentz and SiteStack, to talk about how contractors can survive and thrive in 2025.

Why Interest Rates Aren’t the Real Problem

Contractors often blame interest rates for tightening margins. But Scott points out that while rates make headlines, the bigger challenge is predictability of cost.

Materials have increased 40% in just five years.
Supply chains remain unpredictable.
Labor shortages drive up wages while reducing availability.

The real tax on contractors is uncertainty. If you can’t predict costs, you can’t bid accurately. And if you can’t bid accurately, your margins disappear.

Labor Shortages: The Electrician Gap

The labor shortage isn’t just about general trades. As AI and tech industries build massive data centers, they’re pulling thousands of electricians out of traditional construction.

Scott warns we’ll be short by 1–2 million electricians over the next decade. That means higher costs, project delays, and fiercer competition for skilled labor.

Contractors who rely on the “old way” of recruiting are going to find themselves priced out or left behind.

How AI Procurement Levels the Playing Field

One of the most powerful tools contractors have in 2025 is AI procurement software.

Platforms like SiteStack help contractors:

Predict material costs before they spiral.
Improve bidding accuracy with real-time data.
Automate procurement processes to save time and reduce risk.

For small and mid-sized contractors, these tools aren’t a luxury — they’re a survival mechanism. They help independents compete against national roll-ups with far more buying power.

Why Data Co-Ops Are the Future

Scott emphasizes the importance of collaboration through data.

Instead of competing alone, independent contractors can pool data, share insights, and access collective buying power. This kind of collaboration allows smaller players to stand up to private equity-backed giants who are consolidating the trades.

The future won’t belong to contractors who go it alone. It will belong to those who build networks of shared knowledge and tools.

Consolidation Is Here, Not Coming

Private equity has already begun rolling up contractors across multiple trades. These national groups have deep pockets, buying power, and the ability to run leaner operations.

For independents, the choice is clear:

Embrace software and collaboration, or
Get squeezed out by players with more capital and scale.

Scott is blunt: contractors who keep ignoring technology will not survive the next wave of consolidation.

What Contractors Must Do Now

Adopt construction-specific software. Stop trying to retrofit generic tools into your business. Use platforms built for the trades.
Focus on predictability. Your margins depend on it. Embrace tools that stabilize costs and bids.
Join or build a co-op. Collective power beats isolation every time.
Invest in your people. Labor shortages are real. The contractors who train and retain will win.
Challenge your mindset. 2025 isn’t about doing more of the same. It’s about adapting faster than the competition.

About Scott Cannon

Name: Scott Cannon
Company: BigRentz
Role: CEO
Specialty: Construction rental marketplace & AI procurement software
Websites: BigRentz.com
LinkedIn: https://www.linkedin.com/in/sccannon/

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