Labor Shortages Add to Construction Uncertainty, According to DPR's Q2 Market Conditions Report

Early Planning and Delivery Innovations Like Prefab and Self-Perform Are Key to Navigating Volatile Conditions

REDWOOD CITY, Calif., June 12, 2025 /PRNewswire/ -- Permitting delays, utility constraints, material price volatility, and tariffs continue to challenge construction delivery, according to DPR Construction's Q2 2025 Market Conditions Report. Labor shortages are now compounding those pressures—emerging as a top contributor to project delays across many regions. At the end of last year, the Associated Builders and Contractors (ABC) projected a shortfall of approximately 546,000 workers in 2025. While job openings have begun to decline slightly in recent months, the industry continues to feel the ripple effects of a strained workforce, driving a need for faster, smarter decision-making.

"Volatility has become the norm, not the exception," said Tim Jed, DPR's Supply Chain Leader. "Labor availability, material lead times, and regulatory hurdles are converging into a perfect storm. The customers weathering it best are planning early, pressure-testing strategies, and working with partners who know how to respond as conditions shift."

The cumulative effect of these challenges is an environment of sustained uncertainty. Construction teams are adjusting in real time, balancing resource limitations with rising demand and tighter delivery windows. DPR's latest report outlines how data, planning, and early alignment help teams keep projects moving, on time and on budget.

For example, to help mitigate labor pressures, DPR recommends expanding the use of prefabrication and leveraging Self-Perform Work capabilities. These tools give teams more control over scope, sequencing, and schedule.

 The Q2 report finds these pressures are being felt across a wide range of key markets, including:

• Life Sciences: A surge in large, technically demanding projects is driving strong competition for key trades, particularly in manufacturing. DPR helps customers respond through national and regional trade sourcing, prefabrication to reduce on-site labor, and self-perform capabilities that help address workforce gaps.
  
  
• Healthcare: Amid rising uncertainty and a complex capital planning environment, healthcare systems face pressure on multiple fronts — including workforce constraints, evolving patient needs, and operational risk. DPR supports healthcare owners with real-time market insights, early stakeholder alignment, and prefabrication strategies that reduce risk and improve outcomes.
  
  
• Commercial: Developers in high-growth regions, like Texas, Arizona, and the Southeast, are pursuing ambitious timelines while navigating labor constraints, inflationary pressure, and material cost variability. DPR enables more informed developer proforma inputs by providing cost possibilities for various design options by way of early scenario modeling, early supply chain engagement, and self-perform strategies.
  
  
• Higher Education: Universities are navigating a wave of uncertainty, from rising material costs and shifting regulations to new pressures on funding and enrollment. Many are refocusing on renovation, maintenance, and cost containment. DPR delivers predictability through early logistics planning and collaborative scheduling aligned with tight construction windows and evolving priorities.
  
  
• Advanced Technology: Demand for data centers and advanced manufacturing facilities remains high, driven by AI growth, electrification, and reshoring trends. But teams face major hurdles — including workforce shortages in remote areas, long utility lead times, and permitting delays. DPR helps projects stay ahead through early agency coordination, trade partner alignment, and data-driven planning that informs siting, sequencing, and prefab strategies.

The report also includes a breakdown of current tariff impacts and supplier complexity, with more than 4,000 material-related updates tracked since January. Explore the full report and dashboard at dpr.com/market-conditions.

About DPR Construction
DPR Construction is a forward-thinking, self-performing general contractor and construction manager specializing in technically complex and sustainable projects for the advanced technology, life sciences, healthcare, higher education and commercial markets. DPR's portfolio of work ranges from large-scale new construction to small tenant improvements and special projects. Founded in 1990, DPR is a great story of entrepreneurial success as a private, employee-owned company that has grown to a multi-billion-dollar organization with offices around the world. Strategically focused on delivering more predictable outcomes through applications of virtual design & construction, prefabrication, its team of self-perform craft, and leveraging data to learn and improve from DPR consistently ranks among the top building contractors and employs approximately 11,000 professionals across its family of companies. For more information, visit http://www.dpr.com.

For more information, please contact:
Eva Chotani
DPR Construction
Email: pr@dpr.com 

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SOURCE DPR Construction