How to Strengthen Your Construction Projects When the Market Trends Down

How to Strengthen Your Construction Projects When the Market Trends Down

By Tammy McConaughy, LCI Director of Education & Certification

The October 2025 Architecture Billings Index (ABI) recorded a score of 47.6, up from 43.3 in September. While still below the 50 growth threshold, the increase signals that fewer architecture firms are reporting declining billings. New project inquiries also rose to 54.8, indicating that interest in new work remains healthy even as firms remain cautious about near-term workloads.

For the architecture, engineering, and construction (AEC) community, this is an important moment. The market is soft but stabilizing. In Lean thinking, slowdowns are not pauses; they are opportunities to strengthen your people, your processes, and your partnerships.

Here are three Lean moves your design and construction teams can make now to stay ready for what comes next.

3 Key Steps to Improve Your Project Outcomes

1. Invest in Your People

Lean Tenet: Respect for People

When the pipeline feels uncertain, many organizations pull back on development. Lean organizations do the opposite. They use this time to build capability.

Ongoing development is crucial for teams to succeed in today’s constantly-changing world. With the rise of new technologies and the discovery of new methods, you need to stay ahead to be competitive. There’s always a new skill to learn or an old process to optimize.

Consider:

2. Tighten Your Process Flow

Lean Tenets: Eliminate Waste; Focus on Process and Flow

Slower seasons give your team the space to truly see the system. Inefficiencies that get lost in busy seasons start to become visible.

Conduct a thorough review of your processes. You may be surprised where inconsistencies arise, or where flows that made sense years ago no longer meet today’s standards for excellence. Take this time to identify and fix pain points that have remained unresolved due to the lack of bandwidth to address them.

Try asking:

  • Where do we often wait for information or decisions?
  • Which handoffs cause confusion or rework?
  • What steps in our process add little or no value?
  • Which meeting rhythms no longer serve us?

3. Collaborate Upstream

Lean Tenets: Optimize the Whole; Focus on Customer Defined Value

Soft markets offer the best conditions for strengthening relationships. Use this time to reconnect with owners, designers, and trade partners. Try to find areas where there isn’t complete alignment on objectives or priorities, and seek ways to improve collaboration for future endeavors. This could be a great opportunity to get on their radar for a future project they’re considering.

Try starting with:

  • What has changed in your priorities or pipeline?
  • How can we better define value for your next project?
  • What worked well on our past projects?
  • Where did friction occur, and what can we refine together?

Looking Beyond the Numbers

The ABI for October shows continued softness but also signs of stabilization. Rising inquiries signal that owners are exploring ideas and preparing for future work, even if they are cautious about immediate commitments. Complementary metrics, such as the Dodge Momentum Index, the ABC Construction Backlog Indicator, and ENR cost indices, paint a similar picture. The market is steadying, not stalling.

Lean gives organizations the mindset and system to navigate uncertain conditions with focus and purpose. Strengthening people, refining processes, and aligning early with partners position teams for success when demand increases.

Ready to Start Thinking Lean?

The Lean Construction Institute (LCI) is focused on transforming the design and construction industry to improve operational excellence across projects and organizations. Find out what Lean is all about by exploring our variety of Lean topics, signing up for a local Community of Practice event, or attending an upcoming LCI webinar!