2026 Construction Market Outlook Analysis

The document is a report detailing the outlook for the U.S. construction industry in 2026. It outlines the current economic conditions affecting construction, including sluggish growth due to economic volatility, policy shifts, and supply chain disruptions. The report cites a modest projected growth of 2.0% in non-residential construction spending for 2026, as per the American Institute of Architects. Leading indicators such as the Dodge Momentum Index and construction starts indicate selective strength in commercial and institutional segments. The report also discusses sector-specific forecasts, including expected declines in office and manufacturing construction, while institutional construction is projected to grow. Furthermore, it addresses the significant labor shortages facing the industry, with projections indicating a need for nearly 499,000 additional workers in 2026. The report emphasizes the importance of strategic responses to the labor crisis and highlights upcoming safety regulations that will impact construction practices in 2026.