It’s a challenging time to work in construction finance. Labor shortages. Ongoing supply chain issues. Tariff volatility. Inflation. If one thing is for certain, it’s that nothing seems certain right now.
While these pressures aren’t new, their convergence is creating a high-stakes environment for construction firms everywhere. Despite a number of concerns about multiple economic factors, there is hope, too.
We surveyed over 100 construction finance professionals for our Economic Sentiment Survey to understand how they’re navigating today’s economy. We learned that investing in technology—especially AP automation—is quickly becoming a critical business priority and the light at the end of the tunnel for businesses swept up in uncertainty.
According to our survey, roughly 66% of respondents to our survey state they are more prepared to handle the uncertainty of today compared to that at the start of 2020 with the COVID-19 pandemic. Many companies are now shifting their strategy to focus on what they can control: efficiency, cash flow, and operational resilience. That’s where AP automation comes in.
Economic Concern is Here, and Higher Costs are Following
Despite their preparedness, construction finance leaders are clearly feeling the strain right now amidst a shifting market. According to our Economic Sentiment Survey:
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- 82% are concerned about the current state of the economy overall. Let’s take a closer look at some specific areas as well:
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- 91% are concerned about a possible recession.
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- 93% are concerned about labor market conditions.
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- 92% are concerned about the impact of tariffs.
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- 96% are concerned about inflation.
- 84% have already seen price increases from suppliers tied to inflation.
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That last figure is key. When vendor pricing rises, payment cycles tighten and project costs become harder to predict. As a result, the consequences are both financial and operational.
Here’s what that can mean:
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- Delays in payments can trigger delays in materials.
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- Delays in materials can derail timelines.
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- Derailments cost money, relationships, and trust.
Furthermore, our Economic Sentiment Survey showed over 80% of construction professionals are worried about supply chain volatility causing project delays, underscoring just how connected finance and operations have become.
These sentiments may not be a reason to panic, but they should give teams some pause. Finance leaders who aren’t planning and being proactive could find themselves reacting defensively down the line.
Construction Finance Leaders Are Rewriting the Playbook
So, how are firms responding?
Our survey found that nearly 70% of companies are already changing their business plans and being proactive in response to macroeconomic conditions. Some are tightening budgets. Others are investing in more localized supply chains to minimize tariff exposure. Many are evaluating staffing levels with an eye toward doing more with leaner teams.
Here’s what else stood out from our survey:
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- 44% are re-evaluating budgets and cutting discretionary spending
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- 34% are building up cash reserves
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- 37% are strengthening vendor relationships
These aren’t one-off decisions, but signs of a strategic pivot among many businesses.
Firms are actively prioritizing resilience over growth. However, even with these shifts, finance leaders are being asked to maintain efficiency, accuracy, and control. That strategy is probably not sustainable without rethinking the tools they use.
Investing in Emerging Technology is More Essential Than Ever
Here’s one of the most telling insights from our survey:
Over 60% of respondents said technology is “very” or “extremely” important to responding to today’s challenges.
Most aren’t starting from scratch, either. Seventy-five percent of construction leaders said the technology investments they made during the COVID-19 pandemic are still helping them navigate current conditions.
What our survey found has changed is where they plan to focus investment next:
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- 47% are prioritizing collaboration and workflow tools.
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- 45% plan to invest in AI and machine learning.
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- 36% are focused on compliance and data security.
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- 30% are specifically targeting automation tools.
These numbers highlight a shift in mindset for construction companies: technology is more than just a cost saver. It is now a safeguard against disruption that enables better planning and faster decisions across business functions with more confident execution.
Why AP Automation Rises to the Top
Among all areas for finance tech investment, AP automation delivers an immediate and measurable return in four key ways:
Better Cash Flow Visibility
Uncertainty demands visibility. Automated AP systems give you real-time insights into pending invoices, due dates, early payment opportunities, and cashflow projections. This clarity enables smarter decision-making and eliminates guesswork at a time when decisiveness is key.
Reduced Manual Workloads
Only 12% of respondents in our Economic Sentiment Survey said they don’t plan to invest in any technology when it comes to their finances, which means most businesses see the value in embracing new solutions. With businesses now having to do more with less, automation is how you scale without burnout. Manual invoice processing simply can’t keep up with the volume and complexity of payments that businesses see today.
Stronger Vendor Relationships
Delayed payments lead to frustration and can jeopardize future bids. AP automation ensures vendors are paid accurately and on time, boosting trust and keeping projects on track.
Improved Risk Management
Human error is inevitable when teams are overworked and relying on spreadsheets. Automation reduces mistakes and strengthens internal controls, creating a consistent audit trail for compliance.
In a time where over 66% of businesses have seen recent and anticipated changes in tariffs moderately or significantly adjust their financial planning and forecasting, gaining control over payment timing and accuracy is a powerful advantage.
“Doing More With Less” Isn’t Just a Phrase
For many finance teams, it’s a reality.
When we asked how labor market challenges are impacting operations in the Economic Sentiment Survey:
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- 47% said they’re under moderate to significant pressure to maintain output with fewer resources.
- Only 19% said they were under no pressure to maintain output with fewer resources.
Automation can do more than save time, it helps protect your people from burnout as well. The right automation strategy frees up bandwidth for higher-value activities like scenario planning, forecasting, and vendor negotiations. It allows your team to shift from reactive to proactive without sacrificing accuracy or speed.
AI and Automation Business Investments are on the Rise
One of our survey’s most forward-looking findings?
More than 50% of construction finance leaders say they’re more likely to invest in automation and AI because of economic uncertainty.
That’s not surprising. More leaders are looking to intelligent automation to fill the gap between limited resources and rising expectations.
However, not all automation is created equal. Solutions that are AI-enhanced (like those from AvidXchange) combine the speed of technology with the assurance of human oversight. That means greater accuracy, smarter exception handling, and continuous improvement over time—all the benefits of AI technology combined with a team of experts.
This is the kind of support today’s finance teams need: intelligent systems that reduce manual steps while amplifying insight.
One Thing is Certain: The Future is Built on Automation
Construction leaders are planners. Project managers. Problem solvers. They understand that building something strong means starting with the right foundation. That same thinking applies to finance operations.
If your AP process is still paper-based, manual, or fragmented across tools, you’re introducing risk to your operation—and missing out on better ways to work. Our survey found that 34% of respondents have technology that improves operational efficiency as a top priority for investments in 2025—automation solutions are a clear step towards meeting that need.
AP automation isn’t just about going digital. It’s about going forward. It’s about turning uncertainty into agility, data into decisions, and pressure into progress. If you want to join the finance leaders that feel more prepared to face current challenges compared to those in 2020, automation offers a way forward.
Ready to explore how AP automation fits into your strategy?
Let’s talk about how AvidXchange can help you modernize your AP process—so you can focus on what matters most: building your future.