Commercial Construction Surges in May 2025: What It Means for Labor Strategy

May 2025 delivered a strong signal of confidence in the U.S. commercial construction market. According to Dodge Construction Network, construction starts rebounded by 13% from April, fueled by transformative projects across solar, infrastructure, healthcare, and real estate. This rebound not only signifies economic momentum but also introduces renewed pressure on labor planning as projects scale during peak season.

 

The 9 Largest Projects That Broke Ground in May 2025

Commercial construction is not just back, and it's booming. According to Dodge, here's a breakdown of the top nine projects that contributed to the resurgence:

 

  1. $1.5B Sierra Solar Farm and Storage Project – Fallon, NV
    A massive renewable energy investment aligning with the nation's clean energy goals.

  2. $1.2B Delta Blues Advanced Power Station – Greenville, MS
    A next-generation power facility reinforces energy infrastructure.

  3. $1.2B BART Train Control Modernization – Oakland, CA
    A critical upgrade to public transit infrastructure improves safety and reliability.

  4. $900M SpaceX Starship GigaBay Facility – Brevard County, FL
    A cutting-edge aerospace hub driving innovation and regional job creation.

  5. $780M University of Kentucky CTC Markey Cancer Center – Lexington, KY
    A major healthcare expansion combining research and surgical excellence.

  6. $720M Pfizer HQ Residential Conversion – New York, NY
    A creative adaptive reuse turning former office towers into livable space.

  7. $705M DSHS Western State Forensic Hospital – Lakewood, WA
    A vital investment in mental health infrastructure and public services.

  8. $403M Domino Sugar Residential Redevelopment – Williamsburg, NY
    A waterfront revitalization blending modern housing with historical preservation.

  9. $290M Monmouth Square Residential Development – Eatontown, NJ

    A growing suburban housing project is addressing the regional demand surge.

 Each of these megaprojects requires a high volume of labor across different trades, specialties, and timelines, putting pressure on workforce strategies, especially during peak build periods.

 

The 40% Cost of Labor

Labor remains one of the largest expenses in construction, often accounting for up to 40% of total project costs. This includes direct wages, overtime, insurance, benefits, and the hidden costs of hiring delays or productivity loss. 

As project complexity grows, so does the need for workforce agility. Contractors must balance:

  • Compliance and safety requirements.

  • On-time scheduling with tight milestones.

  • And mitigating the risk of workforce shortages. 

Temporary Labor: The Smart Strategy for Peak Season Demands

The spring and summer construction seasons see a sharp increase in labor demand, often stretching permanent crews too thin. Temporary labor is proving to be a critical lever for:

1. Flexibility

Project timelines fluctuate. Temporary labor allows teams to scale up quickly for the busiest months and scale back when work slows, without carrying year-round payroll burdens.

2. Cost Control

By reducing overhead associated with full-time staff benefits, downtime, and insurance, contractors can stay within budget, especially when labor is already a significant cost driver. 

3. Specialized Skills On-Demand

Need a certified welder for three weeks or extra electricians to finish the rough-in on time? Agencies provide vetted, skilled professionals ready to deploy. 

4. Risk Mitigation

Reliable temporary staffing partners also handle compliance, safety training, and documentation, reducing risk and administrative drag for general contractors and subs alike.

 

The Real Impact

With nearly $8 billion in groundbreaking commercial work in just one month, the construction landscape in 2025 is setting the stage for aggressive growth. But to execute successfully, labor management must evolve. By pairing strategic forecasting with flexible, compliant temporary staffing, contractors can meet the moment, on time, on budget, and with the skilled hands needed to bring these landmark projects to life.

 

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