Rising material costs have been a serious issue for construction and engineering companies since the COVID-19 pandemic required lockdowns in 2020. While the industry hoped these costs would return to normal quickly, that hasn’t been the case. In 2025, costs remain about 40% higher than they were before the pandemic. Additionally, industry leaders remain concerned about the effects tariffs could have on costs.
Supply chain disruptions have certainly contributed to these and related issues. As projects get delayed, business owners get desperate to meet their goals. It’s especially challenging for SMBs that can’t afford to stockpile materials.
Unfortunately, these problems don’t exist within a vacuum. Supply chain volatility and higher material costs also have an impact on hiring construction workforce solutions. Many companies also struggle to find effective hiring strategies that fit their budgets and skill needs.
The Material Cost Challenge
Volatility is perhaps the most challenging aspect of material costs. With inflation, global demand, energy prices, and geopolitics influencing the price of materials, it’s impossible for businesses to budget accordingly. If a tariff deal gets delayed, you might face a 40% increase in steel costs. If the price of energy increases, suppliers have to pay more to create and ship materials. Those increases get passed on to you, the buyer.
Regardless of which factor you face right now, the impact results in unpredictable budgets, tighter profit margins, and increased pressure on project managers and financial controllers.
Finding professionals skilled in areas like cost estimating, vendor negotiations, and financial risk management could help lessen the impact of volatile prices and supply chains on your business. While it won’t eliminate these challenges, hiring the right people gives your organization more control.
Recruiting and hiring these professionals remains difficult because there’s a lack of talent in the workforce. About 80% of firms say it’s difficult to find hourly craft workers. Developing recruitment and onboarding strategies for financial professionals with experience in the construction industry is likely even harder.
Supply Chain Volatility in Construction & Engineering
Supply chain volatility also puts increased pressure on construction and engineering costs. When supply chains can’t deliver enough materials to meet demand, companies end up competing with each other to buy what’s available. This creates conditions where suppliers can charge higher prices.
Most firms cave to these pressures because they don’t have many options. Without the right supplies, they can’t complete projects.
Building relationships with more suppliers can help companies access the materials they need without paying outrageous prices. Firms can also try nearshoring strategies to avoid high tariffs. As long as they follow the law closely, some companies find that they can avoid the highest tariffs by routing deliveries through other countries.
Both of these approaches are easier said than done. Building relations takes time, and nearshoring requires legal expertise. Supply chain talent in construction and engineering is understandably sought after by all firms. How you recruit these professionals could make the difference between hiring them and losing them to competitors.
Technology as a Response
Even when you turn to technology as a response to materials costs and supply chain volatility, your results rely on engineering recruitment that targets professionals who know how to use tools like artificial intelligence (AI), real-time project management platforms, and digital tracking systems.
As the industry adopts technological solutions, engineering and construction hiring trends for 2025 will evolve to reflect these changes. Ideally, you will find tech-savvy candidates who know how to apply emerging technologies to your workflows.
The Ripple Effect on Workforce Strategy
Construction and engineering firms clearly need professionals with cross-functional skills. For example, you might need to hire someone with experience in engineering and finance. Similarly, your construction company might need to hire managers who understand how supply chains work.
These aren’t easy goals to meet. Success will often depend on SMBs choosing recruitment experts who understand the industry’s changing needs.
How MRINetwork Supports Clients in This Landscape
Rising material costs and supply chain disruptions are reshaping hiring trends in construction and engineering. MRINetwork is here to identify, recruit, and onboard candidates who match your business’s evolving needs.
MRINetwork has an existing network that includes thousands of qualified professionals with backgrounds essential to the future of construction and engineering. Contact an office in your region to learn more about how we can fill your open positions and create a hiring pipeline that adapts to the hiring trends of 2025 and beyond.
Connect with MRINetwork