As we look ahead to 2025, the construction finance landscape is poised for significant transformation. The latest insights from AvidXchange’s 2025 Trends Survey reveal the top priorities and concerns for finance leaders in the construction industry. Here, we delve into the seven critical trends that will shape the future of construction finance and accounting departments.
1. Understanding the ROI of AI
Artificial Intelligence (AI) continues to be the trend. Now 82% of finance departments currently using or planning to use AI in 2025. Measuring the return on investment (ROI) in AI remains a challenge, with 71% of finance leaders expressing concerns. In fact, 68% of respondents have already reported moderate to significant ROI from their AI investments. To maximize the benefits of AI and improve ROI, supporting AI adoption through targeted employee training programs is essential.
2. Remaining Vigilant Against Financial Fraudsters
Security remains a top concern for construction finance departments, with 52% of leaders prioritizing fraud and phishing prevention. In 2024, 65% of organizations strengthened their security measures, and 46% of finance leaders took on new responsibilities related to cybersecurity and fraud prevention. As attacks grow more sophisticated, finance departments must stay vigilant and adopt the latest innovations to detect and deter malicious actors.
3. Developing New Skills as the Finance Function Evolves
The finance function for construction businesses is evolving, with 87% of finance leaders taking on new responsibilities in 2024. This includes data analytics, tech integration, and strategic financial planning. This shift towards more strategic roles is driven by the ongoing talent shortage and the demand for digital skills. Embracing this evolution can help finance teams provide valuable insights that drive construction business growth and decision-making.
4. Evaluating Finance and Accounting Tech Stacks
As the demand for cloud-based solutions rises, finance leaders are increasingly consolidating their technology stacks to centralize operations and drive greater efficiency. Recent data reveals that 73% of finance leaders express satisfaction with their current ERP and accounting systems, while 64% are considering a switch within the next six months. The primary cause is heightened concerns around security and a growing need for advanced analytics and real-time reporting capabilities.
5. Adopting New Electronic Payment Methods
The adoption of ePayments is on the rise, with 86% of finance departments using digital wallets and mobile payment platforms. In 2024, the percentage of businesses using mobile payment platforms to pay suppliers nearly doubled. The speed and security advantages of electronic payments make them an attractive option for businesses looking to streamline financial transactions.
6. Finding Efficiencies Through Automation
Automation is a top priority for construction finance leaders. Data shows 64% of organizations are currently using finance automation technology and an additional 17% are planning to implement it in 2025. Automation tools improve compliance, increase efficiency, enhance data analysis, and minimize human errors. This ultimately leads to cost savings and improved productivity.
7. Nurturing Strategic Partnerships with Suppliers
Collaborating with suppliers offers numerous advantages, including discounts and strategic partnerships that positively impact the bottom line. However, a recent survey reveals that despite these benefits, only 37% of finance leaders believe their organization is very effective at supplier collaboration. Embracing supplier hubs can strengthen these relationships by offering greater transparency into invoice and payment statuses, streamlining reconciliation processes, and untimately improving cash flow management.
Where Does That Lead Us?
As we move into 2025, construction finance leaders will need to stay up to speed with industry trends and embrace emerging technologies where possible to better position their teams as essential business assets. Innovations like AI, cloud-based computing, ePayments, and automation open new avenues for enhanced efficiency and enriched business information. By adopting a forward-thinking approach, finance professionals in construction can navigate the future with resilience and adaptability, driving growth and success in the construction industry.
For more detailed insights, check out the full AvidXchange Construction 2025 Trends Whitepaper
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