Carpentry Industry Trends and Outlook for 2025

The carpentry industry is set for big changes as we head into 2025. With over 353,000 workers and an estimated $44.2 billion in revenue — despite ups and downs in the housing market driven by shifts in interest rates and post-pandemic demand​ — it’s clear this field plays a major role in construction.

How do you stay competitive and grow in this environment? The key is to stay on top of carpentry industry trends in 2025.

In this article, we’ll explore:

• New technology that can make your business more efficient.
• Green building trends and the demand for eco-friendly materials.
• Workforce shifts and how to handle labor shortages.
• Customer expectations and the growing demand for custom work.
• Challenges like rising costs and supply chain issues.
• Opportunities to grow your business by tapping into niche markets.

Ready to keep your business going and growing? Let’s dive in!

Overview of the Carpentry Industry in 2025

The carpentry industry is set for both challenges and opportunities in 2025. While the sector has seen modest growth in recent years, several economic, labor, and technological trends are shaping the landscape.

Current State of the Carpentry Industry

In 2024, the U.S. carpentry industry generated $44.2 billion in revenue. The industry has faced fluctuating demand, driven by interest rate hikes, labor shortages, and shifts in residential and commercial construction. 

However, despite these challenges, the carpentry industry remains a vital part of the broader construction sector.

Key Economic Factors Influencing the Industry

The carpentry industry is heavily influenced by economic factors such as interest rates, material costs, and labor shortages. High interest rates have slowed growth in residential construction, but increased public spending on infrastructure projects has helped offset the decline​. 

Labor shortages remain a significant issue, with shortages reported across many trades, including finished carpentry​. 

Rising material costs and supply chain disruptions have also impacted profit margins, making it essential for carpenters to adopt more efficient practices and technology​.

Emerging Opportunities for Carpenters and Contractors

Despite these challenges, there are opportunities for growth. Public infrastructure projects, driven by government funding, are expected to increase demand for commercial carpentry work. 

Additionally, the rise in sustainable building practices and eco-friendly materials offers carpenters new niches to explore​. As technology adoption increases, carpenters who invest in automation, digital tools, and sustainable practices will be better positioned to thrive in the evolving market​.

Track employee time and location accurately with Workyard.

Find out more

The Latest Technology for Carpentry in 2025

Carpentry, like the broader construction industry, was traditionally slow to adopt technology due to tight budgets, high costs, and resistance to change​. However, this is rapidly changing. 

In 2022, 91% of construction professionals saw increased tech use among colleagues who hadn’t previously adopted it​.

Field technologies like drones and wearables had the most impact, according to 82% of respondents, while only 8% noted automation in back-office tasks​. This shift reflects a growing recognition of how technology can improve efficiency and reduce costs, especially on job sites.

While some smaller carpentry businesses face barriers like cost and budget concerns, those adopting these tools are seeing gains in efficiency and accuracy.

Adoption of Key Technologies in Carpentry

Technology adoption in carpentry is gaining momentum, driven by the need for efficiency, safety, and productivity. With market growth projections for various technologies, more carpentry businesses are expected to embrace these advancements to stay competitive.

Automation and Robotics

Automation and robotics are changing how carpenters handle repetitive tasks like cutting and assembling materials. More professionals are using it, in fact:  

• The construction automation market is expected to grow from $4.3 billion in 2023 to $9.1 billion by 2032 at a CAGR of 8.5%, driven by demand for efficiency and cost reduction. 
• The construction robot market is projected to rise from $1.03 billion in 2022 to $1.14 billion by 2030, growing at a CAGR of 17.5%. This growth is fueled by the need to cut labor costs and enhance safety.

Professionals a using these technologies because…

• Automation and robotics handle repetitive tasks with precision, reducing human error and increasing the speed of production.
• These technologies help compensate for labor shortages by reducing reliance on manual labor.
• By taking over dangerous or physically demanding tasks, automation and robotics improve overall worker safety on job sites.

Software Solutions

Software solutions are becoming indispensable for carpentry businesses. The global construction software market surpassed $3.72 billion in 2024 and is projected to reach $8.23 billion by 2033, growing at a CAGR of 9.21%. 

This growth reflects the rising demand for better planning and project management and the overall digitization of the construction industry, including carpentry.

Professionals are adopting this technology because…

• Digital software reduces the time spent on manual processes like scheduling, invoicing, and tracking progress.
• By automating cost estimation and project management, software helps carpenters avoid unexpected expenses and keep projects within budget.
• Carpenters can track project status and workforce management in real time, making it easier to address potential issues before they escalate.

Workyard is a prime example of software that helps carpenters track labor costs, manage employee time, and improve project transparency. Offering features like GPS tracking and time clock integration, this software ensures carpenters have full visibility over labor expenses and project timelines​.

Digital Tools (3D Modeling and CAD)

Digital tools like 3D modeling and CAD (Computer-Aided Design) are becoming essential in carpentry, especially for custom and complex projects. 

• The global 3D modeling market is projected to grow to $13.32 billion by 2033 at a CAGR of 7.95%.
• The global CAD market is expected to expand from $10.7 billion in 2023 to $20.04 billion by 2033, with a 6.4% CAGR​.

Professionals are adopting these tools because…

• With the rising demand for custom carpentry projects, 3D modeling and CAD help carpenters deliver highly detailed and personalized designs to clients.
• These tools reduce the time spent on manual drafting and revisions, speeding up the design and planning process.
• 3D modeling and CAD help ensure higher quality in the finished product by catching potential issues during the design phase.

Outlook: What to Expect

As automation, robotics, and digital tools grow, more carpentry businesses will adopt them to cut costs and boost efficiency. With ongoing innovations, carpenters can expect better access to advanced tools that drive productivity and keep them competitive.

Sustainable Practices and Green Building Trends

Sustainability is playing an increasingly important role in carpentry and construction, with green building materials and practices becoming more popular.

This shift is driven by the need to reduce environmental impact, improve energy efficiency, and meet growing consumer demand for eco-friendly options.

Eco-Friendly Materials Gaining Popularity

The global green building materials market is expected to grow from $474.21 billion in 2024 to $1.2 trillion by 2032, with a CAGR of 12.3%​. Carpenters are increasingly using eco-friendly materials like reclaimed wood, bamboo, and recycled composites. These materials not only reduce the environmental footprint of construction but also offer durability and cost savings in the long term.

Sustainable building materials help conserve dwindling non-renewable resources and reduce the carbon emissions associated with the extraction and transportation of conventional materials​.

Green materials like hempcrete, mycelium, and recycled plastics are also gaining traction as viable, eco-friendly alternatives in the carpentry sector.

Impact of Sustainability on Consumer Demand

Consumer interest in green building continues to rise. In the U.S., 84% of homeowners believe living in a green home is important, and 64% are willing to pay more for eco-friendly homes​. Additionally, green buildings tend to have higher asset values, with property owners seeing a 10% or more increase in value after implementing sustainable building practices​.

This trend extends to commercial buildings, with 42.2% of office spaces in the U.S. being green-certified as of 2022. This shows that both residential and commercial markets are prioritizing sustainability​.

Certification Programs for Green Building Practices

Green building certifications, such as LEED, Energy Star, and BREEAM, are becoming more widely adopted. These certifications showcase a commitment to sustainability and increase property marketability and value​. 

LEED-certified buildings, for example, have been shown to reduce operating costs by nearly 10% in the first year and offer lower maintenance costs​. Such certifications provide clear benchmarks for sustainability, helping builders and consumers make eco-conscious choices.

Outlook: What to Expect

The future of green building in carpentry is strong. Demand for eco-friendly materials and certifications is rising, keeping carpenters who adopt sustainable practices competitively. With government and industry support for reducing carbon footprints, the green building movement is set for major growth in the next decade.

Workforce Changes and Labor Market Outlook

The carpentry workforce is undergoing significant shifts due to an aging workforce, a skills gap, and labor shortages. Despite recent improvements, these challenges remain prevalent. Let’s explore the trends shaping the future of the carpentry labor market.

Aging Workforce and Skills Gap

The average age of carpenters in the U.S. is 42 years​, and many are approaching retirement, contributing to a growing skills gap in the industry. As experienced carpenters retire, the need for younger, skilled workers is increasing.

 However, attracting younger generations like Gen Z to skilled trades remains difficult. Interest in carpentry apprenticeships and other technical trades dropped by 49% from 2020 to 2022.

The aging workforce and lack of young workers are contributing to the persistent labor shortage in carpentry. As of February 2024, 65% of builders reported a shortage of carpenters for finishing work, though this has improved from the all-time high of 85% reported in 2021​.

Initiatives for Training and Upskilling Carpenters

To address the skills gap, many organizations are focusing on training and upskilling.

The U.S. Department of Labor’s investment in expanding apprenticeships has played a crucial role. In 2021, over 241,000 new apprentices entered the national apprenticeship system, and there were nearly 27,000 active apprenticeship programs​.

Training programs are essential to ensure the next generation of carpenters has the skills required for modern projects. Organizations are offering more opportunities for on-the-job learning, paid apprenticeships, and classroom instruction to attract younger workers to the trade.

Growth of Apprenticeship Programs

Apprenticeship programs have become a key solution to bridging the skills gap. From 2014 to 2023, the number of women in apprenticeships increased by 230%, with the largest growth seen among Latina women (349%)​.

However, the construction sector remains heavily male-dominated, with women representing only 4.5% of construction apprenticeships​.

Despite the gender gap, apprenticeship programs are helping to develop a skilled workforce. These programs provide an alternative to traditional college, offering hands-on experience while earning a wage. This approach is crucial for attracting younger workers and reducing the industry’s reliance on an aging workforce.

Current Labor Shortages

While labor shortages have eased since the record highs of 2021, they remain significant in 2024. Still, 52% of builders reported shortages of carpenters for rough work, indicating that despite improvements, the demand for skilled carpenters still outpaces supply.

Outlook: What to Expect

The carpentry labor market faces ongoing challenges with an aging workforce and skills gap, despite easing labor shortages.

However, expanding apprenticeship programs and targeted training are helping bridge the gap. Expect more efforts to attract younger workers and increase diversity, leading to a more skilled and diverse workforce in the coming years.

Managing Carpentry Client Expectations

Client expectations in carpentry are shifting toward personalized, high-quality craftsmanship and seamless service. Homeowners and businesses want custom designs, clear communication, and efficient project management.

These changing demands, along with shifts in residential and commercial construction, are shaping the future of carpentry.

Demand for Custom and High-End Carpentry

The demand for custom and high-end carpentry has been steadily increasing, especially as homeowners seek unique, personalized solutions.

In 2022, 72% of homeowners focused on remodeling interior spaces, such as kitchens and bathrooms, which often require custom carpentry solutions. These projects, which emphasize tailored designs and high-quality craftsmanship, reflect the growing trend toward bespoke carpentry that meets specific homeowner needs​.

The rise in demand for custom carpentry is also driven by the desire for detailed work, including custom cabinetry, intricate moldings, and built-in furniture​. As more clients opt for these specialized services, the shortage of skilled carpenters has further contributed to rising costs, making custom carpentry a premium service​. 

This trend indicates that carpenters offering high-end, personalized services are well-positioned to benefit from this growing demand.

Trends in Customer Service and Relationship Management

Customer service is becoming a key differentiator in carpentry. Take note that 77% of customers are more loyal to businesses that offer outstanding service​. With the rise of digital tools, carpenters are expected to provide timely updates and maintain clear communication throughout a project. 

Personalized customer experiences, driven by data and automation tools, allow carpenters to tailor their services to individual client needs, boosting customer satisfaction and loyalty​.

Clients now expect seamless interactions across multiple communication channels, from initial inquiries to post-project follow-ups. Businesses that invest in CRM systems are better equipped to handle customer expectations, ensuring timely responses, clear communication, and better project management​.

Shifts in Residential vs. Commercial Carpentry Demand

The demand for residential carpentry is growing as housing projects increase globally​. However, commercial construction is expected to grow even faster, with the market projected to expand at a CAGR of 8.5% from 2023 to 2033​. 

Custom work, such as built-in cabinets and unique finishes, is in high demand in residential projects, while efficiency and adherence to strict timelines are prioritized​in commercial spaces.

In the U.S., carpenters in commercial construction are seeing a surge in projects. In Q2 2024, U.S. commercial construction spending hit $2.05 trillion, up 11.3% year-over-year​. With continued government investment in infrastructure, carpenters can expect more opportunities in sectors like education, healthcare, and public works.

Outlook: What to Expect

The carpentry industry is shifting towards higher client expectations for personalized, high-end solutions while balancing increased demand in both residential and commercial sectors. Businesses that prioritize customer service, adopt digital tools, and continue to offer bespoke carpentry services will be well-positioned to succeed in this evolving market.

Challenges Facing the Carpentry Industry in 2025

The carpentry industry, like much of construction, faces a range of challenges as it moves into 2025. These challenges will test the resilience of carpenters, contractors, and the wider industry, demanding adaptability and strategic planning.

❶   Labor Shortages and Skills Gap

One of the most pressing issues for carpenters is the ongoing labor shortage, which we mentioned earlier. While shortages have eased compared to their historic highs in 2021, they remain significant. 

A February 2024 survey found that 65% of builders reported a shortage of labor for finished carpentry, a decline from the all-time high of 85% in 2021 but still far worse than the levels seen during the housing boom of 2004-2006​. 

This shortage is exacerbated by an aging workforce, with many experienced carpenters retiring and not enough younger workers entering the field. The skills gap poses a major challenge, especially as more advanced tools and technologies become essential to carpentry work.

❷   Cost Overruns and Delays

Cost overruns and project delays continue to be prevalent issues in the carpentry industry. A McKinsey study found that 98% of large construction projects experience cost overruns of over 30%, while 77% are at least 40% late​. This is often due to poor planning, unexpected changes, and rising material costs. 

Managing these issues requires improved forecasting and better communication across teams. Carpentry businesses will need to focus on efficiency and strategic planning to keep projects on track and within budget.

❸   Slow Technology Adoption

While the adoption of technology is improving, it still lags in certain areas. Many smaller carpentry firms struggle to justify the cost of implementing new tools, which can limit their efficiency. 

Some carpenters hesitate to adopt technologies like Building Information Modeling (BIM), project management software, and automation because they miss out on the productivity gains and cost savings these tools can provide​. However, businesses that embrace digital solutions are more likely to stay competitive.

❹   Economic Uncertainty

The construction sector as a whole is facing economic headwinds. After a strong 2023 performance, the sector is expected to weaken through 2025. 

Spending on commercial construction is projected to slow to just 1% growth in 2025​. Rising interest rates and inflation are also impacting the carpentry industry, making it harder for businesses to secure financing and maintain profit margins.

❺   Sustainability Pressures

There is increasing demand for carpentry businesses to adopt sustainable practices. Clients are looking for eco-friendly materials and green building certifications, pushing carpenters to meet these demands. 

While this presents opportunities for growth, it also adds pressure on businesses to adjust their operations and absorb the associated costs​.

As the carpentry industry moves forward, overcoming these challenges will require embracing new technologies, developing a strategic workforce, and adapting to changing economic and environmental pressures.

Learn more about becoming a carpenter

• Carpenter Job Description: Skills, Background, and More (w/ Job Post Template!)
• Carpentry Apprenticeship: How to Become (or Hire) a New Carpenter
• Carpenter Licenses and Certifications: What You Need to Start a Business in the U.S.
• Carpentry Terms: A Glossary of Industry Lingo + Detailed Definitions
• Carpenter Training: The 5 Best Courses and Schools for Carpentry Careers

Opportunities for Growth in the Carpentry Sector

The carpentry industry is projected to see moderate growth through 2025, driven by a mix of residential and commercial demands. As economic conditions fluctuate, carpenters can look for opportunities in the following key areas:

❶   Residential Construction

With home improvements remaining a popular investment, carpenters who specialize in renovations and custom projects can capitalize on consumer spending. Even as interest rates affect new home builds, demand for remodeling and upgrading homes, particularly in high-end finishes and custom cabinetry, presents a stable market for skilled carpenters​.

❷   Commercial Construction Growth

Commercial projects, especially in urbanized areas, continue to provide opportunities for growth. Businesses investing in new commercial spaces or renovating existing properties will require skilled carpentry work. The non-residential construction sector is expected to grow, particularly in sectors such as healthcare, education, and retail​.

❸   Sustainable and Eco-Friendly Practices

Consumers and businesses alike are increasingly prioritizing sustainability. Carpentry businesses that adopt green building practices using eco-friendly materials and certifications can stand out in a competitive market. The demand for sustainable practices is growing, with more clients seeking environmentally responsible projects​.

❹   Technology Integration

Carpentry businesses that embrace digital tools, automation, and project management software are more likely to improve their operational efficiency. The construction software market is expected to see substantial growth, which creates opportunities for carpenters to streamline their workflows, reduce costs, and manage larger projects​.

Find out facts to build your business

• Carpenter Marketing: How to Get More Leads for Your Business in 2025
• How to Start a Carpentry Business
• 70 Facts About Carpentry You Need to Know in 2025 (w/ Infographic)
• Carpenter Tools and Equipment: 64 Things Your Business Needs in 2025

The Bottom Line

The carpentry industry is poised for significant transformation as we approach 2025. While challenges such as labor shortages, cost overruns, and economic uncertainty persist, there are also exciting opportunities for growth in residential and commercial construction, sustainable practices, and the adoption of advanced technology.

For carpenters looking to stay competitive and boost productivity, embracing these trends is crucial. One way to do that is by integrating digital tools that streamline operations and improve project management. 

Workyard is an excellent solution that helps carpenters track labor costs, manage time effectively, and ensure project transparency. 

Ready to take your business to the next level? Try Workyard for free today to optimize your carpentry projects and stay ahead in 2025.