Euna Solutions' 2025 State of Public Procurement Report Finds Budgets Flat, Costs Up, and Teams Pushed to the Brink by Last-Minute Requests

Business Wire

a day ago

ATLANTA & TORONTO--(BUSINESS WIRE)-- Euna Solutions®, a leading provider of purpose-built, cloud-based solutions for the public sector, today announced the release of its 2025 State of Public Procurement Report. It offers a comprehensive look into how public procurement professionals across North America are confronting economic volatility, budget constraints, and rising stakeholder demands by leveraging technology, streamlining operations, and reimagining their roles as strategic leaders.
'This year's report makes clear that procurement teams are not just managing spend, they're becoming strategic stewards of public trust in a time of economic uncertainty,' said Tom Amburgey, CEO of Euna Solutions.
'This year's report makes clear that procurement teams are not just managing spend, they're becoming strategic stewards of public trust in a time of economic uncertainty,' said Tom Amburgey, CEO of Euna Solutions. 'This year's State of Public Procurement Report shows that with the right tools, even small teams can drive outsized impact. As automation and AI reshape what's possible, Euna is committed to helping public agencies modernize procurement in a way that's not only efficient, but intelligent, equitable, and future-ready.'
Based on survey responses from 86 public procurement professionals and 252 suppliers, along with anonymized data from over 3,000 procurement teams using Euna Procurement, the 2025 State of Public Procurement Report reveals a sector that is at a critical inflection point. Despite flat budgets, public procurement teams face shrinking purchasing power due to inflation and rising costs, with 2025 emerging as a pivotal year for transformation.
The report's key findings include:
Rising Costs Are Undermining Stable Budgets: Although most agencies report that their budgets have remained steady year over year, procurement professionals consistently identified rising costs as their top external challenge. More than 50% of survey respondents flagged inflation and market volatility as a critical constraint; these factors are eroding real purchasing power, making it harder for teams to achieve the same outcomes with the same dollars.
Small Teams Face Big Demands: Many public procurement departments consist of just one to three individuals, often tasked with managing the full-cycle procurement process across multiple departments. Complex projects can take upwards of 130 hours without streamlined workflows, highlighting the need for automation and digital transformation.
Manual Processes Are Slowing Progress: Outdated systems and fragmented workflows contribute to inefficiencies. Teams spend significant time on routine tasks, limiting their ability to focus on strategy and supplier relationships.
Technology Adoption Is Accelerating but Barriers Remain: Nearly 70% of survey respondents have established or plan to establish contract lifecycle management software in the next year, while agencies are also prioritizing investments in supplier performance tracking and invoice automation. However, budget limitations remain the biggest barrier to adopting modern procurement solutions.
Digital Tools Drive Real Savings: Procurement teams using Euna Procurement save an average of nearly $35,000 per project through more efficient sourcing, contracting, and supplier engagement. Euna's AI-powered savings advisor has saved agencies over $4.5M through cart optimization at checkout. Full-cycle automation also leads to faster contract execution, reduced late payments, and improved compliance.
AI Adoption Slow but Emerging in State Operations: According to the National Association of State Procurement Officials (NASPO), 42% of states now have official AI policies, and all 54 U.S. chief procurement officers included in the polling named AI as a key priority for 2025. While adoption is early, practical use cases are already demonstrating value, such as AI-enabled invoice analysis that flags payment discrepancies before they become costly errors and marketplace tools that rapidly analyze and compare goods for best-value purchasing decisions at scale. Euna's AI-driven procurement solutions alone saved public agencies $1.25M in 2024 and flagged more than 75,000 invoice discrepancies, underscoring the technology's potential to deliver meaningful cost and time savings.
The themes within the 2025 State of Public Procurement Report, especially the trend toward automation, full-cycle digital workflows, and data-driven decision-making, point the way toward AI's growing role in the future of public procurement.
'AI is poised to play a pivotal role in public procurement by automating difficult tasks and enabling faster, more strategic decision-making based on real-time data and performance trends,' said Amburgey. 'The foundations being laid today with automation and modern cloud-based platforms are paving the way for intelligent systems that can help procurement teams do even more with their limited resources.'
To read the full 2025 State of Public Procurement Report visit: https://eunasolutions.com/resources/2025-state-of-public-procurement/
About Euna Solutions
Euna Solutions® is a leading provider of purpose-built, cloud-based software that helps public sector and government organizations streamline procurement, budgeting, payments, grants management, and special education administration. Designed to enhance efficiency, collaboration, and compliance, Euna Solutions supports more than 3,400 organizations across North America in building trust, enabling transparency, and driving community impact. Recognized on Government Technology's GovTech 100 list, Euna Solutions is committed to advancing public sector progress through innovative SaaS solutions. To learn more, visit www.eunasolutions.com.