2 0 2 7 C O N S T R U C T I O N I N D U S T R Y O U T L O O K

2027 CONSTRUCTION INDUSTRY OUTLOOK 2

200 construction leaders tell us about the systems, the advice, and the technology behind their next phase of growth.

We asked 200 construction leaders about their priorities for the next two years, and they put revenue growth first, followed by skilled labor, modernized technology, and stronger cash-flow management. Growing a construction business takes the right tools in the toolkit: people, technology, financial visibility, and trusted advice.

The tools matter more as the business grows, and many are not keeping pace. Two-thirds of companies still manually move data between their systems, and 38% are working on platforms that are at least seven years old. Outdated technology and manual processes can limit a company’s ability to grow — and getting past them means shifting from managing every problem in- house to seeking guidance and updating systems.

Technology can help. Leaders recognize that AI can help improve day-to-day efficiency and data accuracy, and they are ready to apply it to administrative tasks, manual data entry, and slow reporting. Since AI capabilities are evolving quickly, leaders want a clearer view of how the technology can deliver value.

Existing advisors can also help. Beyond traditional tax and compliance advice, advisors who understand both the financial and operational sides of the business can help leaders evaluate emerging technologies like AI, put practical applications in place, and connect that investment to broader business goals.

Across most challenges this study identifies, the common thread is a platform that has not kept pace with the business. The good news is that this is a solvable problem — and the businesses that have solved it did not do it alone.

EXECUTIVE SUMMARY

Growth starts with the right toolkit

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THE FIVE CHALLENGES

Five key challenges for construction businesses This report highlights a common theme: construction businesses that have challenges with technology, financial management, and business strategy may simply need an updated solution toolkit. We outline the main issues that leaders identified and explore proactive steps to help overcome them in the future.

1. The hidden costs of DIY Two-thirds of businesses still manually move data between their systems, and that manual work comes with a cost. The same hands-on approach that built the business is now holding it back, and so are the tools that got it there.

2. Systems that haven’t kept pace Most growing construction businesses know their original systems haven’t kept pace with their growth, and only 21% say their current system handles complexity well. Decisions to replace systems get delayed, and that can start eroding margins and growth.

3. AI without a blueprint Construction businesses are using AI in their day-to-day dealings, but they may not be using it to its full capability. The study identified that while 62% of businesses are already using or piloting AI, few fully understand it, and most say their advisor is not closing that gap, which creates an advisory opportunity.

4. The project that never starts Construction leaders broadly agree that they need to modernize their financial systems. But when asked what is holding up modernization, no single obstacle dominates, which may be why the project keeps getting delayed.

5. The advisor is not in the plan Three in four construction businesses work with a CPA or advisory firm. While most leverage their CPA for their tax and compliance requirements, many are not seeking additional guidance from them. Leaders may not realize their advisors may be able to help guide some of their biggest, most important business decisions.

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Hard work and self-reliance are virtues in this industry. That DIY instinct does not switch off when it comes to finance functions, but it can result in inefficient, manual processes that likely have hidden costs. Manually keying job costs from one system into another and using a spreadsheet to track month-end close data can expose a business to potential errors and financial risk.

The field-to-office gap Manual practices slow businesses down, and 66% of leaders reported that they still use manual processes. These manual efforts can add up: 43% of respondents experienced a reporting error or missed deadline caused by disconnected or outdated systems, which can directly impact the bottom line.

Reducing those errors starts with the most manual process of all, moving data from the field into the general ledger.

66%

STILL MOVE DATA

BETWEEN SYSTEMS

BY HAND

43%

HAVE HAD AN ERROR OR

MISSED DEADLINE FROM

DISCONNECTED SYSTEMS

HAVE FIELD AND

OFFICE SYSTEMS FULLY

CONNECTED

Only 1 in 3

CHALLENGE 1

The hidden costs of DIY

2027 CONSTRUCTION INDUSTRY OUTLOOK 5

CHALLENGE 2

Systems that haven’t kept pace The systems that help a construction business get off the ground are not always able to scale as the business grows. As project volume increases, teams expand and operations become more complex. This is usually when the original systems begin to show their limits. As shown in Figure 01, only 21% of construction leaders say their current system can successfully handle the complexity of their growing business.

49%

21%

16%

6%

0%

0% 10% 20% 30% 40% 50%

ADEQUATELY - SOME WORKAROUNDS

WELL - NO ISSUES

STRUGGLES - SIGNIFICANT LIMITS

WE’VE OUTGROWN IT

DON’T KNOW

Figure 01 How well current software handles business complexity

System limitations rarely appear as a single problem and can show up as various issues across the operation.

In the study, leaders indicated:

→ 44% experience administrative burden

→ 42% point to manual data entry and reconciliation

→ 40% experience reporting delays

→ 39% report project cost-tracking issues

→ 38% name disconnected systems as a pain point

While each of these areas looks like separate problems, viewed together, they point to the fact that the infrastructure supporting the business has not kept pace with the business itself. The instinct to manage system problems in-house can keep an old system in place long past its usefulness. Over time, these problems can add up and hold a business back from its growth goals.

2027 CONSTRUCTION INDUSTRY OUTLOOK 6

�A technology strategy is no longer an IT decision; it’s a business growth decision. The construction companies that build the right foundation now will be better positioned to scale, adapt and compete as the industry changes.”

Patrick Ball, Intuit Leader | Director, Technology Advisory, Aprio

“

Cash flow tells you whether you can pay your bills this month. Job costing tells you whether the work you are doing is actually profitable, but it is the job costing gap that compounds over time — eroding margins on projects that looked profitable at bid but turned into losses by closeout. The study found that inaccurate or delayed project cost-tracking ranks among the top five operational challenges, and that more accurate job costing is one of the most commonly cited improvements leaders want from their systems. Visibility into profit at the job level, not just at month-end, is what separates a growing construction business.

The technology decision is really a growth decision Replacing systems is not a simple process. Leaders need to think ahead and determine what their business will require in the future, which processes should change as the business evolves, and how technology, financial information, and operations need to connect. These questions should be addressed before selecting a product. Once selected, the new platform’s performance may depend on how well it connects to the rest of the operation.

Many of today’s advisors are well- positioned to help businesses answer key questions regarding which technologies and tools can improve functionality and support future growth goals. Ultimately, the technology a business selects directly affects its growth strategy.

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CHALLENGE 3

AI without a blueprint Construction businesses are adopting AI faster than they are learning how to use it. While AI adoption in construction businesses is high, leaders continue to deploy (and pay for) technology without fully understanding its full range of benefits. Nearly half of the business leaders surveyed plan to include AI in their budgets in the next 12 to 24 months. For most, the question is not whether they will use AI — it’s how to get the best value from it.

AI adoption, understanding, and guidance The survey data points to a clear pattern: AI arrived on the job before the advice on how to use it. Of those surveyed, 62% report already using or piloting AI, but it’s important to point out that the percentage breaks out unevenly. As shown in Figure 03 on the following page, only 22% are actively using AI in their financial or operational workflows, while 40% are still piloting or testing.

As shown in Figure 02, slightly more than half of respondents describe themselves as familiar with AI features in their financial systems, and only 32% describe themselves as very familiar or better.

Confidence in technology is not an issue. As seen in Figure 04, 44% are very or extremely confident that AI can improve financial accuracy and decision- making. Yet among respondents who work with a CPA firm, 57% say that their firm is not proactively guiding them on AI, as Figure 05 shows.

A growing number of accounting and ERP platforms already include AI features, such as invoice capture, coding suggestions, and cash-flow forecasting. But because the technology is new, these features may vary widely by system and may be underused.

BY THE NUMBERS

62% ALREADY USING OR PILOTING AI

44% PLAN TO INVEST FURTHER IN

THE NEXT 12-24 MONTHS

57% SAY THEIR CPA ISN’T

GUIDING THEM ON AI

2027 CONSTRUCTION INDUSTRY OUTLOOK 8

SOMEWHAT FAMILIAR

VERY FAMILIAR

FAMILIAR

0% 10% 20%

34%

29%

22%

NOT AT ALL FAMILIAR 14%

EXPERT LEVEL 3%

30% 40%

Figure 02 Familiarity with AI features in accounting or ERP

Figure 03 Current use of AI in financial or operational workflows

40%

21%

22%

18%

PILOTING OR TESTING

NO, AND NO PLANS

NO, BUT PLANNING WITHIN 12 MONTHS

YES, ACTIVELY USING

INSIGHTS

22% ARE ACTIVELY USING AI

The 62% using AI includes 22% active users plus 40% piloting or testing AI. Adoption is real, but leaders need direction on pilots.

The technology is not the hard part, it’s deciding what you want it to do for your business and how to find the best solution that fits your business. This is a topic business leaders should be discussing with their advisors.”

Patrick Ball, Intuit Leader | Director, Technology Advisory, Aprio

A closer look at the 62% using AI

“

2027 CONSTRUCTION INDUSTRY OUTLOOK 9

Business leaders should implement AI to replace repetitive tasks such as reports that are rebuilt each month and manual updates to invoices, cost codes, and budget variances. The return on investment in AI and automation includes less time spent on manual efforts, which frees up time for employees to bid on new work or review margins on the fly. Leaders who implement AI should see gains in time, effort, efficiency, and profitability from building an intentional AI blueprint.

Treat AI like any other project — start with a blueprint. Decide which features are desired, where they sit in the workflow, and what the results need to be. And like other projects, AI needs experienced advisors to help plan and guide the process.

INSIGHTS

57% ARE NOT RECEIVING

AI GUIDANCE

44% are very or extremely confident AI improves accuracy, as seen in Figure 04.

Firms are adopting AI faster than the people who advise them are talking about it.

Confident in AI, but unguided Figure 04 Confident AI improves financial accuracy & decisions

MODERATELY CONFIDENT

0% 10% 20% 30%

29%

23%

23%

11%

VERY CONFIDENT

SOMEWHAT CONFIDENT

15%EXTREMELY CONFIDENT

NOT CONFIDENT AT ALL

57%38%

5%

YES

NO

UNKNOWN

Figure 05 CPA proactively guiding on AI strategy

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CHALLENGE 4

The project that never starts Construction leaders are clear about the direction their systems need to take. Three in four say the pressure to modernize their financial systems has never been greater, and the same share ranks integrating field and office data as a top priority. Two in three also see cloud-based, multi-entity accounting as increasingly essential for businesses their size. Also, a similar share expects AI to meaningfully change how they will manage finance within the next three to five years. The challenge isn’t recognizing what needs to change; it’s turning that knowledge into action.

Just 33% of businesses have project management software that automatically exchanges data with their accounting or ERP system. Even among businesses that identify integration as a top priority, only 32% have achieved it. That disconnect reveals something important: two-thirds of businesses are not

integrated, yet only 38% identify disconnected systems as a pain point.

The gap between where businesses know they need to go and what they are experiencing day to day may help explain why modernization remains a priority without becoming a project.

Why the project never quite starts When leaders were asked what is holding modernization back, no single obstacle dominates. Training efforts, cost, platform selection, disruption during implementation, concerns about functionality, and data risk all receive relatively similar levels of agreement. Leaders agree that each of these areas (all between 61% and 77%, as seen in Figure 06) is important, but weighing several legitimate concerns at once makes it hard to focus on one specific area.

2027 CONSTRUCTION INDUSTRY OUTLOOK 11

One reason why leaders may hesitate to modernize is that their current system still feels “good enough.” Among businesses with fully integrated systems, 74% agree that their current system works well enough. But 73% of businesses with no integration say the same. In other words, the perception of adequacy, is not necessarily tied to how well the technology actually connects the business.

The “good enough” perception has a financial consequence that rarely shows up on the income statement. Manual reconciliation, delayed closes, and reporting workarounds absorb staff time that could otherwise go toward bidding, margin review, or growth planning. When those costs are invisible — buried in overtime hours, estimate corrections, and late reports — the case for modernization is hard to make. Making those costs visible is often the first step toward making the decision.

That sets the bar high for change. When the current system is still getting the job done, modernization must be worth more than the investment alone — it has to outweigh the perceived risk and disruption of switching. In this study, businesses that engaged a CPA or advisory firm for ERP and accounting software selection and implementation were more than twice as likely to be fully integrated — 46%, versus 22% of businesses that handled it themselves.

Figure 06 Three in four firms say the pressure to modernize has never been greater, and the same share call integrating field and office data a top priority.

CONSTRUCTION FIRMS ARE UNDER MORE PRESSURE �THAN EVER TO MODERNIZE FINANCIAL SYSTEMS

INTEGRATING FIELD AND OFFICE DATA� IS A TOP PRIORITY

AI WILL MEANINGFULLY CHANGE HOW CONSTRUCTION �FIRMS MANAGE FINANCES IN THE NEXT 3-5 YEARS

CLOUD-BASED, MULTI-ENTITY ACCOUNTING IS �BECOMING A REQUIREMENT FOR FIRMS OUR SIZE

WE EXPECT OUR CPA OR ADVISOR TO GUIDE� US ON TECHNOLOGY, NOT JUST TAXES

%16% 22% 28% 27%

65%20% 22% 25% 18%

68%10% 23% 25% 20%

76%14% 28%28% 20%

61%15% 30% 19% 12%

DISAGREE AGREE

INSIGHTS

2X THE LIKELIHOOD OF FULL

INTEGRATION WHEN CPA

ADVISORS ARE INVOLVED

IN SYSTEM SELECTION &

INTEGRATION

The data indicates that system costs are not the issue. Businesses are not dissatisfied with what they paid; they are dissatisfied with the amount of work they still must do by hand.

77

2027 CONSTRUCTION INDUSTRY OUTLOOK 12

CHALLENGE 5

The advisor is not in the plan Almost every construction business we surveyed has an accountant, with three in four leaders engaging an outside CPA. Yet far fewer have what they consider an advisory relationship.

Three in four leaders outsource at least part of their core accounting to a CPA or advisory firm, and 86% buy at least one service. This suggests that while advisors are present, they are simply not being asked to advise on strategic growth efforts. The average business buys 3.5 of the 10 services an external CPA or advisory firm can provide, and one in seven buys none.

From their existing advisors, leaders most often request tax planning and compliance services (61%), followed by ERP and accounting software selection (46%), outsourced accounting and bookkeeping (43%), audit and assurance (43%), and financial reporting and cash-flow forecasting services (42%). Advisors have room to play a much larger role in construction businesses.

We asked leaders to review the 10 services CPA or advisory firms can provide and, for each one, to tell us whether they use it today or would consider using it in the future. Figure 07 shows both rates side by side — and the distance between them is where the unmet demand sits.

53%14%

48%27%

49%30%

45%

45%

43%

33%43%

55%27%

42%21%

42%

38%46%

35%61%

M&A / TRANSACTION ADVISORY

SUCCESSION & WEALTH

TECHNOLOGY & AI STRATEGY

OUTSOURCED CONTROLLER / CFO

R&D AND OTHER TAX CREDITS

REPORTING & CASH-FLOW FORECASTING

AUDIT & ASSURANCE

ERP SOFTWARE SELECTION

ACCOUNTING / BOOKKEEPING

TAX PLANNING & COMPLIANCE

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

CURRENTLY USE WOULD CONSIDER

Figure 07 Services used vs. would consider from outside firm

2027 CONSTRUCTION INDUSTRY OUTLOOK 13

Today, leaders most often leverage their advisors for tax planning and compliance services, followed by software service selection. Interestingly, the businesses that already use strategic advisory services are not necessarily the highest revenue generators. A company’s revenue has no measurable relationship with how much advisory work it engages, but its growth does.

Businesses that describe themselves as growing use more advisory services than non-growing companies, and the fastest-growing companies use strategic advisory at more than double the rate of everyone else.

→ 48% of businesses that experience 15% or more growth use succession and wealth planning compared to 23% of other businesses.

→ 30% of growing companies use transaction advisory services, versus only 12% of flat or declining-growth businesses.

The fastest-growing construction businesses are the most likely to include their advisors as a key tool in their toolkit.

The best advisory relationships aren’t built at filing deadlines. They’re built in the conversations about the next bid, the next market, the next generation of ownership. Owners who bring their advisor into those conversations get a very different kind of value.”

Chavon Wilcox, Construction Leader | Partner, Assurance Services | Audit, Aprio

“

142027 CONSTRUCTION INDUSTRY OUTLOOK

THE BLUEPRINT

Three solutions to help change the trajectory The study outlines the five key challenges that arise when a business has outgrown its systems and the advisors best suited to help were not consulted. However, we outline three solutions below to help resolve these issues and change the trajectory.

1. Connect your on-site and in-office systems Only 33% of businesses have connected their financial and project management systems. Connecting these systems may help reduce reporting errors and missed deadlines, which 43% of respondents have already experienced.

2. Establish AI goals with your advisors 62% of businesses are already using or piloting AI. But 57% say their existing CPA firm is not providing guidance on how to use AI for their business. Discuss your AI goals with your advisor to help create a plan and see measurable returns on your investment.

3. Put a date on the platform decision There’s no single obstacle to modernizing that stands out in the survey. However, businesses that brought in a CPA or advisory firm to help select and implement the platform were more than twice as likely to finish the job. The criteria come first. The data follows from that. Set a timeline for modernization and engage a trusted advisor to help guide the process.

The construction businesses that grow fastest over the next few years will be the ones that connect their systems, develop a clear AI plan, and involve their advisors in business decisions. With the right tools and the right people beside you, you can Account for Anything®.

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ABOUT THIS REPORT

Methodology Findings are drawn from an Aprio study of 200 construction-industry leaders with support and cofunding from Intuit®. ROI Rocket, an independent market research firm conducted the 16-minute online survey, from July 13 – 23, 2026. The margin of error for the total sample is plus or minus 6.9%, calculated at the 95% confidence level in the most conservative case.

To qualify, respondents had to be 25 or older; employed by a construction-related business such as a general or specialty contractor, an architecture or engineering firm, or a builder or developer; at an organization with annual revenue between $5 million and $500 million; part of the leadership team at VP or Director of Operations level or above; and involved in selecting the organization’s accounting or ERP software or its CPA and advisory firm. Industry quotas were set to focus the sample on contractors, so respondent-composition figures are not reported, and findings describe surveyed businesses rather than the industry as a whole.

Account for Anything®

This report is provided for informational purposes only and does not constitute accounting, tax, legal, or investment advice. Figures are self-reported survey results and are subject to sampling error. Any application to your own circumstances should be reviewed with a qualified Aprio professional before you act on it.

“�Aprio” is the brand name under which Aprio, LLP, and Aprio Advisory Group, LLC (and its subsidiaries), provide professional services. LLP and Advisory (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. LLP is a licensed independent CPA firm that provides attest services, and Advisory (and its subsidiaries) provide tax and business consulting services. Advisory and its subsidiaries are not licensed CPA firms.  APRIO, the Aprio pentagonal pinwheel logo and “ACCOUNT FOR ANYTHING”, are registered marks of Aprio Advisory Group, LLC.  © 2026 Aprio Advisory Group, LLC. All rights reserved.

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