By Al Nafea
In 2025, emerging tech like AI, 3D modeling, drones, and VDC is helping small contractors boost productivity, cut costs, and thrive in a changing construction industry. Technology is improving productivity and profitability for small contractors as the building industry continues to change.
Technological advancements are sweeping across all industries at a staggering pace, and the architecture, engineering, and construction sectors have seen dramatic changes over the past few decades. This growth is creating real momentum in the building and construction sector, especially for those willing to adapt. In 2025, new technologies continue to improve performance and profit margins for small contractors. In this article, we’ll dive deeper into the trends you should know about in the coming year.
Construction remains a key contributor to the U.S. economy, responsible for more than $2.1 trillion worth of structures each year (AGC). Despite the upswing in projects, job growth, and continued expansion, the industry isn’t an easy one to be in. Small contractors face many challenges, including difficulty hiring and retaining quality workers, managing documents in an increasingly digital world, cash flow hurdles, and communication breakdowns. Still, project managers and their teams continue to be resilient, delivering successful results despite the pressures. Now, technology is stepping in to help ease some of these burdens.
The tools that are driving the construction industry forward align closely with global trends identified in The Future of Jobs report by The World Economic Forum. According to the report, we are at the beginning of a fourth industrial revolution.
What were once just buzzwords—artificial intelligence (AI), generative AI (Gen AI), machine learning, the Internet of Things, cloud technology, augmented and virtual reality, 3D modeling, unmanned aerial vehicles (UAVs or drones), and mobile internet—are now becoming trusted tools even in the oldest professions.
For small contractors grappling with today’s economic challenges, solutions may be found in adopting new technologies that optimize projects right from the start. Technologies like virtual design and construction (VDC) allow teams to plan and analyze every aspect of a project before breaking ground.
Here’s a closer look at some of the technologies being adopted by building contractors in 2025:
3D Modeling and Augmented Reality
Reality Capture Technology
Lean Construction Software
Drones (UAVs) for Site Surveys and Inspections
3D modeling combined with virtual and augmented reality is enhancing client engagement by offering in-depth visualizations of construction projects. These tools allow contractors, architects, and engineers to see different stages of a project before construction even begins, helping to improve planning and reduce costs.
For example, decking and railing contractors can share real-time 3D models with clients, ensuring better communication and project accuracy. Beyond design, VR and MR systems are also being used for safety training, offering immersive ways for workers and managers to practice hazard identification. Studies have shown that students trained in VR environments are better at identifying job site hazards than those using traditional training methods.
In 2025, the use of 3D modeling and augmented reality in project planning, client communication, and construction safety is only expected 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, Denver Deck Builders
Reality capture technology (RCT) turns the physical world into digital data, giving contractors new ways to manage projects more efficiently. Capturing highly accurate measurements and visuals allows for early issue identification, minimizing delays and costly rework.
RCT helps teams gain a deeper understanding of existing conditions, leading to better decision-making throughout the project lifecycle. As the construction industry continues to modernize, reality capture technology is becoming a go-to solution for streamlined workflows, faster site assessments, and cost savings.
“Reality capture data significantly reduces rework by providing highly accurate as-built documentation.” — Industry expert at Avvir
Meeting client needs in 2025 will require solving increasingly complex problems, and lean construction software is a valuable tool for doing just that.
Virtual design and construction (VDC) technology allows contractors, engineers, and architects to create digital models that map out every detail of a project. VDC supports planning schedules, budgets, site logistics, and more—all before any construction begins.
The benefits are clear: lean construction software can help improve site safety, reduce costs, increase quality, streamline project management, and boost client satisfaction. For small contractors, embracing this technology now means setting a strong foundation for the future.
Site surveys have always been a crucial step in construction, and drones (UAVs) are taking that process to new heights in 2025.
Drones offer a faster, safer, and more efficient way to conduct site surveys, inspections, and defect detection. They capture important visual data quickly and can share real-time results with project teams. For decking and railing contractors, this technology improves project planning accuracy and saves valuable time.
As more industries adopt drone technology, its applications are expanding beyond construction into fields like landscaping, painting, and roofing.
“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
We are living in an era of unprecedented opportunity. Modern technologies like AI, augmented and virtual reality, and drones are creating new ways to improve productivity and profitability across the construction sector.
Small contractors, whether ready or not, have an opportunity to explore the leading tech trends of 2025. Like every revolution, these changes will unfold with or without us. By embracing these technologies now, small contractors, architects, and engineers can position themselves for greater success in 2025—and beyond.