2026 has been an environment marked by expanding growth opportunities coupled with mounting business risks and construction firms will see their balancing skills tested.

Finances will continue to be pressured by trends like volatile material supplies and costs (up 34% since 2020) and the chronic labor shortage, aggravated by immigration enforcement. But, in addition to declining interest rates, positive business trends like accelerating investment by private equity and a booming market in data center construction should help those that can manage the underlying risks.

Reprinted courtesy of Craig Tappel, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.