ESOP Construction Firms Hold Steady Despite Labor and Rate Pressure
Key Highlights
-
Labor, not demand, is the growth bottleneck: ESOP contractors report stable backlogs but limited capacity due to workforce depth
-
AI tools move from optional to operational: Estimating, scheduling, and job costing lead technology investment priorities
-
Employee ownership supports long-term stability: Retention, culture, and succession planning remain key ESOP advantages
OAKBROOK TERRACE, IL — Prairie Capital Advisors, Inc. (“Prairie”), a middle-market investment bank specializing in ownership transitions for private construction businesses, has released findings from its 6th Annual Construction Survey focused on ESOP-owned firms.
Prairie works closely with construction company owners nationwide on growth strategies and succession planning, with many clients choosing employee stock ownership plans (ESOPs) as a long-term ownership solution. The annual survey is designed to capture benchmarks, emerging trends, and market factors shaping the performance and sustainability of employee-owned construction companies.
ESOP Firms Maintain Stable Backlogs Despite Market Headwinds
Survey results show ESOP-owned construction firms remained resilient in 2025, with most respondents reporting stable backlogs and healthy demand. This performance persisted despite ongoing challenges from higher interest rates, persistent labor shortages, and increased competitive pressure across the construction sector.
Workforce Depth Emerges as Primary Growth Constraint
Across respondents, workforce depth—not demand—continues to limit growth. Firms reported difficulty recruiting experienced tradespeople, field supervisors, and office leadership needed to support expanding operations and project volume.
Technology Adoption Accelerates, Led by AI Tools
Technology investment continues to gain momentum, with ESOP-owned contractors increasingly adopting AI-enabled tools to improve estimating accuracy, scheduling efficiency, job costing visibility, and management decision-making.
Employee Ownership Supports Retention and Accountability
Respondents reinforced the role of employee ownership in strengthening company culture, accountability, and long-term retention, particularly among experienced, long-tenured employees critical to operational continuity.
Governance and Sustainability Planning Gain Importance
More firms are prioritizing ESOP sustainability and governance planning, including conducting—or planning—repurchase liability and long-term sustainability studies to ensure ownership transitions remain viable over time.
Leadership Development Becomes Strategic Priority
Leadership development and succession planning are becoming increasingly intentional, as companies invest in internal talent pipelines to support continuity, future ownership transitions, and long-term growth.
“We’re excited to share the results of our 6th Annual ESOP Construction Industry Survey. Once again, the findings offer valuable insight into the trends shaping our ESOP construction clients and reinforce what we continue to see—ESOPs play a meaningful role in strengthening culture, accountability and employee retention among successful construction companies,” commented Franco Silva, Managing Director at Prairie.
Rocky Fiore, Managing Director and COO, added, “This survey is another example of our thought leadership within the ESOP construction industry, providing meaningful data and useful insights for our clients and partners.”
To view the survey visit www.prairiecap.com/article/prairies-6th-annual-esop-construction-survey-insights-into-2025-and-beyond.