Construction Market Update for Late 2025 to Early 2026

This technical report provides an update on the US construction market as it transitions from late 2025 to early 2026. It outlines the current economic environment, highlighting the impact of federal investments from the IIJA, CHIPS Act, and Inflation Reduction Act on infrastructure and clean energy projects. The report details ongoing challenges such as labor shortages, inflation, and supply chain disruptions while noting the mixed trends in private construction, particularly in commercial office spaces. The document also discusses the importance of strategic procurement and digital transformation for contractors to enhance productivity and resilience. Additionally, it addresses the evolving regulatory landscape, emphasizing the need for compliance with stricter environmental mandates. The report concludes with a cautiously optimistic outlook for the construction market, recommending strategies for stakeholders to navigate ongoing disruptions and capitalize on emerging opportunities.