2025 National Subcontractor Market Report
See How Top-performing Subs
Are Overcoming the Status Quo
What separates the most profitable subcontractors from the rest — and what every sub can do to get there
Table of Contents
About the Report
In late 2024, Billd surveyed subcontractors across the nation to create the fifth annual National Subcontractor Market Report. This survey investigated the market conditions subcontractors faced in 2024, capturing the perspectives of hundreds of construction executives. The findings reveal a clear divide between top-performing subcontractors and the rest — and what practices drive that difference.
Report Highlights
The status quo in construction continues to place an enormous financial burden on subcontractors — slow pay, rising costs, and misaligned supplier terms are persistent realities. But top-performing subcontractors are finding ways to break free. They're bidding smarter, financing strategically, and treating working capital as a tool rather than an afterthought.
This report identifies the specific behaviors, tools, and mindsets that separate high-margin subcontractors from those who leave money on the table every project.
15.2%
Average profit margin for subs who account for working capital costs in bids
11.8%
Average profit margin for subs who do not account for these costs
54 days
Average wait to get paid after submitting a pay application
Subcontractors who treat working capital as a line item — not an afterthought — are seeing measurably better outcomes: higher revenues, stronger margins, and more confidence in their 2025 growth plans. The gap is widening. Those who adapt their bidding and financing strategies now will be the ones who dominate in the years ahead.
The Ongoing Burden of Slow Pay
Still the #1 Cash Flow Problem
Despite growing awareness among general contractors, slow pay remains the dominant challenge for subcontractors entering 2025. The average subcontractor waits 54 days after submitting a pay application to receive payment — often while their own supplier terms expire in 30 days or less.
74%
Of respondents report being generally slow paid by general contractors
79%
Of subcontractors paid for materials out-of-pocket before receiving payment
49%
Said cash flow was the biggest obstacle to business growth
54
Days
Average time waiting to get paid for completed work
88
Days
Worth of working capital available to the average business
The Gap Is Getting Harder to Bridge
Most subcontractors have supplier terms of 30 days or less, yet wait nearly two months to get paid. This gap — nearly 24 days on average — must be bridged with working capital. Top performers have a plan for this. Most subs still don't.
Rising Input Costs & Margin Pressure
Labor Costs Continue to Rise
Skilled labor shortages remain a persistent headwind. Subcontractors are paying more to attract and retain qualified workers, compressing margins further.
11%
Average increase in skilled labor costs year-over-year
52%
Named skilled labor availability as the top risk to their business in 2025
Material Costs Remain Volatile
Post-pandemic material spikes have moderated, but price volatility hasn't disappeared. Tariff uncertainty and supply chain fragility keep procurement unpredictable.
14%
Average increase in material costs compared with peak pandemic levels
62%
Foresee material price volatility negatively impacting their business in 2025
The best-performing subcontractors are adapting through smarter supplier relationships, diversified sourcing, and building the cost of working capital directly into bids. 67% of top performers adjusted their bid templates in 2024 to reflect true financing costs — a practice that directly separates profitable subs from the rest.
How Top Performers Finance Growth
Beyond Supplier Terms
Supplier terms remain the most common method for purchasing materials, but top-performing subcontractors are diversifying their financing toolkit. Those with access to dedicated material financing are taking on larger projects and growing faster.
How subcontractors purchased materials in 2024
75%
Have supplier terms of 30 days or less, yet wait 54 days to get paid
41%
Believe their supplier terms don't align with their actual payment timelines
87%
Report a misalignment between supplier terms and days sales outstanding
Working Capital as a Competitive Edge
The most significant differentiator in 2025 is not trade, geography, or even company size — it's how subcontractors think about and manage working capital. Those who account for the cost of working capital in their bids consistently outperform those who don't.
| Financing Source | Typical Cost | Cost Driver |
|---|---|---|
| Line of Credit | 10–15% APR | Interest |
| Supplier Terms | 2–4% per month | Cost baked into pricing |
| Material Financing | 2–4% per month | Financing charges |
| Credit Cards | 18–36% APR | Interest / Merchant fees |
| Cash | 5–10% APY | Forgone investments / Delayed growth |
Only 53% of subcontractors currently include the cost of financing in their bids. That means nearly half are absorbing a real cost — and giving GCs a hidden discount on every project. The top performers have closed this gap. Download the full report for their exact approach.
Revenue Growth & 2025 Outlook
Subcontractors heading into 2025 are cautiously optimistic. Pipeline activity is healthy in most markets, but the ability to take on new work without straining cash flow is increasingly the binding constraint. Those with a working capital plan are positioned to scale. Those without one are at risk of winning the bid but losing on the project.
68%
Plan to grow revenue in 2025, up from 61% the prior year
42%
Say access to working capital is their biggest barrier to taking on new projects
2×
Top performers are twice as likely to have a dedicated financing strategy
Key Takeaway
The subcontractors who will win in 2025 are the ones who stop treating working capital as a last resort and start treating it as a strategic tool.
Download the full 2025 Market Report to see every data point, regional breakdown, and the exact strategies top performers are using right now.
About the Survey Respondents
500+
Construction executives surveyed across the United States
32
Trades represented, from mechanical to concrete to framing
All 50
States represented in the survey sample
Respondents included owners, CFOs, and financial decision-makers at subcontracting firms ranging from small specialty contractors to large regional businesses. The survey was conducted in Q4 2024 and represents a broad cross-section of the subcontracting industry.
Get the Full 2025 Report
Download the complete 2025 National Subcontractor Market Report and see exactly what the top performers are doing differently.
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