TL;DR

Mid-market construction firms are caught in a crossfire of security threats, fragmented data systems, and a widening tech skills gap. With tight budgets and jobsite limitations, IT leaders are under pressure to modernize without overextending. This post unpacks the top six IT hurdles—and how to start solving them.

Key Takeaways

• 42% of mid-market contractors see cybersecurity as their top risk and the one they’re least prepared for.
• Poor data integration wastes up to 28% of project time due to rework.
• 76% of builders aren’t fully leveraging their data’s potential.
• Over 60% of firms struggle to find tech-skilled workers.
• Jobsite connectivity issues delay decisions and increase security risk.

Introduction

IT leaders in mid-market construction firms aren’t just tech managers anymore - they’re strategic linchpins. As construction becomes more data-driven, the demand on IT to secure, streamline, and scale tech operations grows exponentially. This post breaks down the six biggest challenges construction IT leaders face in 2025, drawing on fresh industry data and field-tested insights.

1. Persistent Cybersecurity Threats & Compliance Burden

Top risk. Least prepared. That’s the damning summary from the QBE Construction Risk Survey, which found 42% of mid-market construction firms cite cybersecurity as their #1 threat, but only 40% admit they’re underprepared to handle it (Construction Dive).

Cybercriminals target construction firms for their sensitive financial and project data and their often-weak defenses. Add in regulatory pressures and IT leaders face a double bind: protect more, with less.

Action points:

• Deploy secure remote access tools (e.g., SASE, MFA).
• Build vendor risk programs to monitor subcontractor security.
• Consider unified, integrated cybersecurity platforms to close expertise gaps and meet compliance.

2. Data Fragmentation & Integration Complexity

Your PM team uses Procore. Finance lives in Sage. Field logs live on tablets but never hit the office dashboard. Welcome to the world of fragmented data.

Procore reports 18% of project time is lost just searching for data. Worse, 28% of time is lost to rework caused by bad or outdated data (Procore).

Action points:

• Prioritize platforms with native integrations.
• Invest in iPaaS (e.g., Boomi) for custom connectivity.
• Standardize data formats across project phases.

3. Technology Adoption & Digital Skills Gap

Construction spends less than 1% of revenue on IT, and 45% of firms still use manual workflows (Gartner).

Meanwhile, 62% of firms report new hires lack the tech skills needed to use current tools (AGC).

Action points:

• Phase out spreadsheets and legacy tools.
• Pair new tech rollouts with robust training programs.
• Partner with vocational schools to build a future pipeline.

4. Securing & Retaining IT / Tech-Savvy Talent

Mid-market firms are stuck between big players who can pay more, and small firms who can move faster. The result? 61% of construction companies say skilled IT talent is hard to find and getting harder (Deloitte).

Action points:

• Offer defined growth paths for tech staff.
• Adopt cybersecurity platforms that drive engagement and upskilling for talent
• Lean on automation and AI to support small IT teams.

5. Managing IT Costs Amid Economic Uncertainty

High interest rates, inflation, and tighter owner budgets are hitting IT hard. Many firms delay upgrades or skip cybersecurity protections because they can’t justify the spend.

Yet legacy systems often cost more in the long run—through inefficiency, downtime, and security risk.

Action points:

• Run TCO analyses to compare cloud vs. legacy.
• Monitor SaaS usage to eliminate waste.
• Phase implementations to spread costs.

6. Job Site Connectivity & Infrastructure Gaps

Even the best platform fails if you can’t connect to it. Field teams often work in dead zones, using unsecured networks or home Wi-Fi. This delays updates, increases errors, and opens major security holes.

Action points:

• Invest in dedicated jobsite connectivity
• Use endpoint protection for all remote devices.
• Align connectivity plans with tech rollout strategy.

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FAQ

What’s the biggest cybersecurity risk for construction firms?

Phishing and ransomware top the list, especially when field teams use unsecured networks or weak credentials.

Why does data fragmentation hurt profitability?

Lost time and rework from siloed data drive up costs. It also blocks insights from AI and analytics tools.

How can firms upskill their current teams?

Use vendor training, internal mentorships, and microlearning. Upskilling is often faster and cheaper than hiring.

What’s one fast win to improve IT posture?

Enable multi-factor authentication across all systems. It’s low-cost and dramatically reduces breach risk.

Conclusion

These challenges aren’t just IT problems - they’re business risks. Whether you’re modernizing your data stack or just trying to retain your tech talent, one thing is clear: mid-market firms must act now to stay competitive. Empower IT to do more with the right tools, skills, and strategy.

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Looking to upgrade your IT strategy without breaking your budget? Let’s Explore the Potential to build smarter, secure infrastructure that scales with your business.

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