Pain Points and Solutions in the New Construction, Commercial and Home Service Trades

The construction, commercial trades, and home services industries are facing significant challenges in 2025. From labor shortages to financial instability, these sectors must adapt to overcome persistent obstacles. This blog explores five major pain points and offers practical strategies to address them.

Labor Shortage: The Skilled Worker Crisis

The Problem

A chronic shortage of skilled labor continues to plague the construction and home services industries. According to a recent survey by the Associated General Contractors of America, 93% of construction firms report having open positions they struggle to fill. This makes it difficult for builders to assemble the teams needed to complete projects on time and within budget.

The shortage spans various trades, including bricklayers, groundworkers, joiners, plasterers, plumbers, roofers, and electricians.

The Solution

• Invest in Training and Education: Develop comprehensive apprenticeship programs and partnerships with trade schools to cultivate a new generation of skilled workers.

• Enhance Recruitment Efforts: Implement targeted recruitment campaigns that highlight the benefits and opportunities within the trades.

• Offer Competitive Compensation: Provide attractive wages and benefits to retain existing workers and attract new talent.

  
  

Rising Material Costs and Supply Chain Disruptions

The Problem

The construction industry is grappling with escalating material costs and supply chain disruptions. Factors such as tariffs on Chinese imports have led to increased prices for building materials. Additionally, the COVID-19 pandemic has caused significant delays and shortages in the supply chain.

The Solution

• Diversify Suppliers: Establish relationships with multiple suppliers to mitigate the risk of disruptions.

• Adopt Technology: Utilize inventory management software to monitor stock levels and predict future needs.

• Plan Ahead: Order materials well in advance and consider bulk purchasing to lock in prices and ensure availability.

Financial Instability and Cash Flow Issues

The Problem

Financial instability is a significant concern in the construction industry. Many firms face cash flow issues due to delayed payments, cost overruns, and project delays. These financial challenges can lead to insolvency and hinder the ability to take on new projects.

The Solution

• Implement Robust Financial Management: Use accounting software to track expenses, manage budgets, and forecast cash flow.

• Negotiate Payment Terms: Establish clear payment schedules with clients to ensure timely payments.

• Seek Financial Assistance: Explore financing options such as lines of credit or loans to maintain liquidity during challenging periods.

  
  

 Regulatory Compliance and Bureaucratic Hurdles

The Problem

Navigating complex regulations and bureaucratic processes can be time-consuming and costly. Compliance with building codes, safety standards, and environmental regulations requires significant resources and expertise.

The Solution

• Stay Informed: Keep abreast of changes in regulations and ensure that all team members are educated on compliance requirements.

• Hire Compliance Experts: Employ professionals who specialize in regulatory compliance to guide the company through complex legal landscapes.

• Streamline Processes: Use project management tools to organize documentation and facilitate communication with regulatory bodies.

  
  

Technological Integration and Modernization

The Problem

The construction and home services industries have been slow to adopt new technologies. This reluctance hampers productivity, efficiency, and competitiveness. Many firms still rely on outdated methods, leading to errors and inefficiencies.

The Solution

• Invest in Technology: Adopt modern tools such as Building Information Modeling (BIM), project management software, and mobile applications to enhance efficiency.

• Train Employees: Provide training programs to ensure that staff are proficient in using new technologies.

• Embrace Innovation: Foster a culture that encourages innovation and continuous improvement.

Addressing these pain points requires a proactive approach and a willingness to adapt. By investing in workforce development, embracing technology, and implementing sound financial and regulatory practices, the construction, commercial trades, and home services industries can overcome current challenges and build a more resilient future.

Bonus Pain Point: Permitting and Inspections—The Hidden Profit Killer

The Problem

You win the job, get your crews lined up, and then boom—you're dead in the water waiting on permits or an inspection that’s two weeks out. Sound familiar? Every contractor knows the frustration of having labor ready, materials staged, and nothing moving because the city’s dragging its feet or kicked back paperwork over a small error.

These bottlenecks kill productivity, burn your profit margin, and throw off your entire schedule.

The Solution: Bring in a Third-Party Permitting & Inspections Partner

For busy contractors juggling multiple projects, handing off permitting and inspection coordination to a third-party vendor isn’t just smart, it’s essential. These firms live and breathe building codes, zoning regulations, and municipal processes. They know who to call, what paperwork gets rubber-stamped, and how to keep your jobs moving.

Why It Works:

• They Speak “City Hall”: Vendors have insider knowledge on local departments and what each one wants. They can often resolve issues in hours that would take your office staff days.

• Fail Fewer Inspections: Many services will do a pre-inspection walkthrough to catch and correct issues before the inspector ever arrives.

• Keep Your Crews Working: By syncing permitting and inspection timelines with your production schedule, you avoid having teams sit idle—or worse, bouncing between half-finished jobs.

• Reduce Costly Mistakes: A missed step or outdated form can derail a project. These pros don’t miss details.

• Let You Scale Up: Whether you're adding new subs, new neighborhoods, or new cities, a good vendor can expand right alongside you.

  
  

Real Talk

If you’re still trying to handle all permitting in-house while growing your book of business, you’re eventually going to choke on the admin load. Third-party permitting and inspection services aren’t an added expense—they’re how smart contractors stay profitable, on schedule, and competitive.