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By Matt McCammon, AvidXchange

It’s a challenging time to work in construction finance, between labor shortages, ongoing supply chain issues, tariff volatility, and 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.

At AvidXchange, 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 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:

  • 82% are concerned about the current state of the economy overall. Let’s take a closer look at some specific areas as well:
  • 91% are concerned about a possible recession.
  • 93% are concerned about labor market conditions.
  • 92% are concerned about the impact of tariffs.
  • 96% are concerned about inflation.
  • 84% have already seen price increases from suppliers tied to inflation.

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:

  • Delays in payments can trigger delays in materials.
  • Delays in materials can derail timelines.
  • 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:

  • 44% are re-evaluating budgets and cutting discretionary spending
  • 34% are building up cash reserves
  • 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:

  • 47% are prioritizing collaboration and workflow tools.
  • 45% plan to invest in AI and machine learning.
  • 36% are focused on compliance and data security.
  • 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 Is a Top Investment Choice

AP automation stands out among finance technology investments because it provides immediate, measurable benefits. According to our Economic Sentiment Survey, only 12% of respondents don’t plan to invest in financial technology, showing the broad recognition of its value. With companies needing to do more with less, automation allows scalable operations without overburdening teams, as manual invoice processing can no longer keep pace with today’s payment demands.

Speaking of, “doing more with less” isn’t just a saying for finance teams—it’s their reality. Our survey found 47% are under moderate to significant pressure to maintain output with fewer resources, while only 19% report no such pressure. Automation not only saves time but also reduces burnout, freeing staff for higher-value work like scenario planning and negotiations, and enabling a shift from reactive to proactive operations without sacrificing accuracy or speed.

Automation also directly improves risk management. Overworked teams relying on spreadsheets are more prone to mistakes, but automation reduces errors, strengthens internal controls, and ensures an audit-ready compliance trail. In fact, over 66% of businesses have seen recent and anticipated tariff changes significantly affect their financial planning and forecasting, making accurate, timely payments a distinct competitive advantage.

Looking ahead, more than 50% of construction finance leaders say economic uncertainty has made them more likely to invest in automation and AI. Intelligent automation, especially when AI-powered, bridges the gap between shrinking resources and rising expectations to deliver greater accuracy, smarter exception handling, and ongoing improvement. Today’s finance teams need these intelligent systems to reduce manual workloads and amplify insights, blending technology’s speed with expert human oversight for the best results.

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.

 

About the Author: 

As Vice President and General Manager of Sales at AvidXchange, Matt McCammon brings over 15 years of strategic leadership in driving revenue growth, building high-performance teams, and scaling go-to-market strategies in the fintech and SaaS sectors. With a proven track record of exceeding targets and fostering lasting customer relationships, Matt leads a data-driven approach, empowering teams to deliver innovative solutions that streamline financial operations. Passionate about operational excellence and customer success, he is committed to advancing AvidXchange’s mission to revolutionize the way companies pay their bills.