Key Takeaways From The 2025 CFMA National Conference
The construction industry stands at a crossroads of opportunity and challenge, where innovation and collaboration are key to unlocking success. At GBQ, we’re committed to staying ahead of the curve, which is why our team members Emma Giroux and Ryan Kilpatrick recently attended the 2025 CFMA National Conference and walked away with a wealth of insights. This dynamic event was a hub of ideas, where industry professionals shared insights on leveraging technology, refining exit strategies, enhancing project management, and navigating market trends. Here’s what we learned and how it can empower your business.
The Transformative Power Of AI In Construction
Artificial Intelligence (AI) is no longer a futuristic concept. It’s a game-changer revolutionizing how construction companies operate. Discussions at CFMA highlighted several AI applications transforming the industry:
- Artificial General Intelligence (AGI) streamlines repetitive tasks like data entry, freeing up valuable time for strategic decision-making.
- Machine Learning (ML) is a powerful predictor of outcomes. Some insurance providers in the construction space are using ML to assess risk, while contractors report using it to help enhance jobsite safety, forecast cash flow, prepare budgets, and conduct variance analyses.
- Natural Language Processing (NLP) converts spoken words into text, capturing 10 times more detail than written reports. This technology is ideal for documenting jobsite conditions, attendance, and issues, and is widely used in contract and document reviews.
- Computer Vision leverages cameras to monitor jobsite progress and safety compliance, such as ensuring proper use of safety gear, and providing real-time insights for accounting and risk management.
- Large Language Models (LLMs), like Copilot or ChatGPT, accelerate research and correspondence drafting, boosting efficiency.
- Robotics stole the spotlight with innovations like TyBOT, which automates rebar tying, and a remarkable Australian machine that 3D prints buildings and lays bricks.
From an accounting perspective, AI promises to reduce reliance on manual data entry, enable real-time dashboards, and facilitate a continuous close, potentially even daily. These advancements empower finance teams to focus on strategic insights, driving smarter decisions and greater profitability.
ESOPs: A Strategic Exit Path For Construction Companies
Employee Stock Ownership Plans (ESOPs) remain a top choice for construction firms seeking a sustainable exit strategy. With 17% of all ESOPs in the construction sector and 30% of new ESOPs coming from this industry, their appeal is clear. ESOPs preserve company culture, attract top talent, and offer significant tax benefits, such as being exempt from federal (and potentially state) income tax and opportunities for gain deferral under §IRC 1042.
Key considerations for implementing an ESOP include:
- Timeline: Expect 6–18 months for setup.
- Structure: Forming a holding company to manage debt can mitigate surety concerns.
- Redemption Planning: Budget for redemptions triggered by death, disability, retirement, or termination.
- Learning from Others: Engage with both young and mature ESOPs prior to implementation to gain a comprehensive perspective. Ensure you engage with a firm to complete an ESOP feasibility study and guide you through the ESOP process. GBQ can help.
By strategically planning for these factors, construction firms can leverage ESOPs to ensure long-term stability and employee engagement.
Click here to learn more about ESOPs
Collaborative WIP Meetings: The Heart Of Project Success
Work-in-progress (WIP) meetings are the backbone of project evaluation, enabling early identification of risks and opportunities. CFMA attendees identified common challenges, including inaccurate inputs, delays in data collection, tracking change orders, and aligning cost projections with financial realities. These hurdles underscore the need for a collaborative, trust-based approach.
Keys to successful WIP meetings include:
- Building Trust: Foster open communication, reliability, and genuine concern for team interests to create a culture of accountability.
- Deep Project Knowledge: Understand specific projects and project managers to flag issues early and provide proactive solutions.
- Robust Tools and Training: Equip teams with user-friendly technology and real-time data to drive informed decision-making.
- Consistent Engagement: Conduct WIP conversations across all five stages of project management to maintain alignment.
By prioritizing collaboration and leveraging advanced tools, companies can transform WIP meetings into a strategic asset for project success.
Market Outlooks: Navigating Residential & Heavy Construction
Residential Construction
Despite higher interest rates compared to the COVID-era boom, the residential sector remains robust, driven by a housing shortage and strong demand from Millennials forming households. Elevated construction costs, skilled labor shortages, and potential tariff impacts continue to push home prices and rents higher. As populations shift to affordable markets, demand for supporting commercial and infrastructure projects grows. To stay competitive, firms must adopt strategic procurement, risk-based bidding, and escalation clauses while leveraging AI and software for better cash flow planning.
Heavy Construction
The state of America’s infrastructure (graded a concerning “C” by the American Society of Civil Engineers) demands urgent action. Sectors like wastewater, transit, and roads are nearing failure, requiring costly repairs and innovative funding solutions. With 75% of infrastructure funding coming from state and local governments, competition for resources is fierce amid rising interest rates and budget constraints. Construction finance professionals must adapt to policy shifts, explore public-private partnerships, and embrace technologies like AI and robotics to deliver projects efficiently and gain a competitive edge.
Looking Ahead
The 2025 CFMA National Conference underscored the construction industry’s resilience and potential for innovation. At GBQ, we’re inspired by these insights and ready to partner with you to harness AI, structure successful ESOPs, optimize WIP processes, and navigate market dynamics. Together, we can build a future where your business thrives through collaboration, innovation, and strategic foresight. Contact us today to turn these insights into action.
By Ryan Kilpatrick, CPA, CCIFP & Emma Giroux, CPA
Looking for additional construction industry insight? Check out these resources:
Empowering Architecture & Engineering Firms With ESOPs: A Strategic Path Forward
Mastering Inventory In A Tariff-Driven World
Accounting Methods For Small Contractors
