Key opportunities in a slowing construction market

By Dani Sheehan.

Understand how the economy is impacting the roofing and construction sectors to remain resilient through the end of the year.

Looking ahead to the rest of 2025, the economic picture offers a mix of steady growth, shifting consumer sentiment and industry-specific slowdowns. Determined to understand how these changes will or will not affect the roofing industry, Heidi J. Ellsworth sat down with Alex Chausovsky, director of analytics and consulting at the Bundy Group, in a recent Contractor Outlook to uncover his economic insights.

The Bundy Goup is a small boutique investment bank, and in Alex’s role, he provides direction to his clients on where the economy is headed, assists business leaders and owners in sales, acquisitions and capital financing. He shared, “My career has really been focused around one simple concept, which is how can I help people who are responsible for making business decisions, leverage data and an objective analysis in order to make the best quality decision?” From the macroeconomic environment and technological trends to labor market conditions and geopolitical developments, they all have an impact, and he helps people understand what they should be doing in response to the landscape.

Navigating slowing construction

In light of recent government decisions around the end of Q1 and moving into Q2 of this year, Alex described the construction industry as being “on the back side of the business cycle,” with most segments experiencing a slowdown since their peak in early to mid-2023. “The residential market has obviously been significantly affected by the interest rate environment,” he shared, with single-family housing particularly weak. “Multifamily was more robust, but that’s starting to slow pretty dramatically too.”

Non-residential construction, including metal buildings, is also slowing, especially in manufacturing and traditional office space. However, Alex highlighted two big areas of opportunity:

1. Data center construction: Driven by the demand for computing power and AI infrastructure, data centers are fueling both new construction and retrofits of vacant office space. Alex shared, “That opportunity is going to be very advantageous for the metal construction sector... regardless of what happens in the macro environment.”
2. Semiconductor manufacturing: Investment in U.S.-based semiconductor facilities continues, particularly in regions working to reduce reliance on imports.

Alex believes the economy is not in crisis, but it’s entering a more complex phase. While core construction segments may see a dip in momentum, savvy contractors can focus on resilient pockets of growth like tech-related construction and advanced manufacturing builds. “If we can contain the uncertainty, sentiment should bounce back and we should continue to see growth,” Alex noted.

In the meantime, staying informed, flexible and ready to pivot toward emerging markets will be the key to weathering the second half of 2025.

Read the transcript, Listen to the podcast or Watch the webinar to learn more about Alex Chausovsky’s outlook on recent economic trends.