Are Increasing Tariffs And Labor Shortages Affecting The Advanced Work Packaging In 2025?

Challenges are nothing new to the construction industry, but 2025 has raised the bar. With the skilled labor shortage reaching a record high and tariffs driving up material costs, contractors are under tremendous pressure to complete projects more quickly, more cheaply, and more effectively. This is precisely the moment when Advanced Work Packaging (AWP) emerges as a major game-changer, not just a trendy term.

What are the real reasons behind uncontrolled expenses and delays?

Construction input costs have risen by an astounding 41% since February 2020. The most recent round of tariffs imposed by the Trump administration has caused prices to skyrocket for necessities like steel, copper, and aluminum, which are the foundation of any commercial or infrastructure project. 

It is more difficult than ever to lock down budgets because suppliers are modifying prices in response to global uncertainty, even if a project is entirely domestic.

But what’s the real kicker? It’s work. 

The industry now requires at least 546,000 additional workers to meet current demand, and a startling 91% of contractors are having difficulty finding qualified candidates, even if it is about operators of used construction machinery. 

This is a delivery crisis now, not just a labor issue. In actuality, investors and developers are now more focused on deadlines than on expenses. In the construction industry, schedule certainty has formally emerged as the new currency.

Learn some basics about advanced work packages

Fundamentally, AWP is an organized approach to project delivery that synchronizes engineering, procurement, and construction into a unified, prearranged schedule. It divides big projects into smaller, more manageable “work packages” so that everyone on the job site, from supervisors to planners, is aware of what is expected of them and what is needed. 

It goes beyond simply having better documentation. The Construction Industry Institute (CII) states that AWP may lead to: 

A 25% rise in worker productivity

10% lower overall installed cost

80% of projects based on AWP are completed on time or earlier

When you are competing with budget cuts and growing costs, that’s a big deal.

Why, isn’t everyone doing it yet?

Even though AWP is obviously effective, you can’t implement it right away. The absence of role-specific training is the largest obstacle to adoption, a 2024 peer-reviewed study found. Companies have been hindered by the lack of specialized guidance that engineers, supervisors, and planners frequently require in order to use AWP efficiently.

However, things are shifting quickly. This can be the new normal in coming days and people won’t be hesitant to implement AWP at the work sites.

Which academy is taking lead to provide training on AWP?

Concord Construction Academy has introduced a fully online certification program to assist businesses in making the switch to AWP more swiftly. It doesn’t take months to finish, and it was created with actual job roles in mind.

Among the salient features are:

Specialized training programs for planners, engineers, and supervisors

Real-world case studies, downloadable resources, and quizzes in on-demand modules

Enterprise teams can participate in live Q&A sessions and group learning.

Options for expedited training in cases where projects are already behind schedule

Up to 35% more productivity, less rework, and even better cash flow are already being experienced by early adopters of the program, particularly in high-stakes contracts like Guaranteed Maximum Price (GMP) jobs where every delay costs money.

The construction industry can only rise by upskilling; hiring is not enough

Although hiring more staff might seem like the obvious answer, Olfa Hamdi, CEO of Concord, states that “hiring alone won’t fix today’s challenges.” Upskilling current teams to handle greater complexity, better planning, and faster execution are the best courses of action for businesses at this time, as the talent pool is already overstretched.

With labor shortages and steel prices that can fluctuate overnight, AWP is rapidly establishing itself as more than just a management fad. It is turning into a strategic imperative.

Two Cents

Despite the odds, it is evident that contractors who invest in AWP and workforce upskilling will remain profitable and competitive as 2025 progresses. Whether you are managing mid-sized commercial projects or major infrastructure construction, adopting this approach could give your projects the competitive edge they require.

At MY Equipment, we know that construction is about more than just machinery—it’s about strategic planning, particularly during difficult times. We will keep providing you with insights like these to keep you on the cutting edge. Whenever you are ready to buy a used equipment without breaking your account, simply get in touch with us.

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