Nonresidential construction spending dipped slightly in April, leaving roofing contractors to navigate a market marked by modest public‐sector support amid weakening private demand. 

According to the latest figures from the U.S. Census Bureau, total construction for April reached a seasonally adjusted annual rate of $2.15 trillion, a 0.4% decline from March and 0.5% below the level recorded in April 2024. 

Of that sum, nonresidential projects accounted for $1.25 trillion, down 0.1% from the previous month and 0.5% lower than in April of the prior year. Spending on private nonresidential projects bore the brunt of the pullback. 

In April, private outlays totaled $746 billion, a 0.5% decline from March’s revised $750 billion. The office, retail, and lodging segments all registered modest declines as high borrowing costs and demand uncertainty slowed project starts. 

Public nonresidential spending, by contrast, climbed 0.5 % to $502 billion, buoyed by federal infrastructure outlays and a backlog of school renovations, according to a news release from Associated Builders and Contractors on June 2.

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“Construction spending slipped in April as headwinds like trade‐policy uncertainty, high interest rates and tight lending standards continued to batter industrywide momentum,” said Anirban Basu, ABC's chief economist. 

Basu added that 22% of contractors reported project delays or cancellations attributed to tariffs and related trade concerns, underscoring the policy volatility that has hindered private‐sector investment.

Data-center projects were among the few private segments that showed resilience. Census Bureau data indicate that spending on data-center construction in April increased by 0.2%, reflecting ongoing corporate investment in cloud infrastructure and hyperscale facilities. 

However, the computer and electronic manufacturing category, which had driven much of 2023’s expansion, was down nearly 10 % year over year. “With the exception of data centers and certain public‐sector segments, the industry has few bright spots at the moment,” Basu said.

Manufacturing project spending rose 0.3% in April, while outlays for healthcare facilities and public safety buildings were flat. Public highway and bridge construction increased 0.5% to $146.3 billion. Educational projects held steady at $110.9 billion, down 0.1% from March. Public-sector stability provides a lifeline for roofing contractors focused on school and municipal projects.

Implications for Roofing Contractors

Commercial roofing firms often rely on a steady pipeline of private commercial projects — particularly office buildings, retail complexes and hospitality properties — to sustain growth. With private spending on those segments softening, many contractors are weighing shifts toward more stable public‐sector work or niche private categories, such as data centers and industrial facilities.

Data centers often demand specialized roofing systems — such as fully adhered thermoplastic polyolefin or high‐performance reflective membranes — to meet stringent energy efficiency and cooling requirements. 

Contractors with expertise in these systems can expect to find work even as broader private‐sector building slows. 

“Data centers remain a key driver of nonresidential growth,” Basu said, noting that many technology firms have completed earlier phases of build‐out and are now expanding capacity to handle increasing workloads.

Public‐sector work likewise offers a cushion. School districts and municipal agencies continue to fund roof replacements and repairs even amid budgetary constraints. Basu observed that federal infrastructure support and growing state and local education budgets have propped up public nonresidential spending in April. 

Tariff‐induced volatility in steel and aluminum prices has compounded pressure on roofing material costs. On June 4, the administration doubled tariffs on imported steel and aluminum from 25% to 50%. According to Reuters, this action has already driven domestic metal premiums up more than 50 % since April, straining manufacturers of metal roofing panels and related components.

Roofing Contractor reported in late May that metal roofing premiums had surged 54 % since April, with many contractors adjusting bids weekly to account for unpredictable surcharges. Nearly 42% of roofing firms surveyed in Q1 2025 cited material‐cost issues as their top concern. 

With domestic steel‐mill capacity near peak use, many suppliers are extending lead times or demanding larger deposits. Contractors without long‐term agreements risk being squeezed on both availability and price.

Labor Pressures and Strategic Considerations

The tight labor market remains a chronic challenge. The construction industry had 248,000 job openings on the last day of April, according to an ABC analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey released on June 3. 

JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 3,000 last month and are down by 78,000 from the same time last year.

According to a May 2 release from the Bureau of Labor Statistics, the industry added 11,000 construction jobs in April, of which 4,900 were in nonresidential specialty trades. 

Heavy and civil engineering employment, by comparison, fell by 500 positions. Roofing contractors report fierce competition for skilled installers, particularly those versed in metal and high‐performance membrane systems.

As firms vie for the same limited pool of talent, labor costs are climbing. Some contractors have begun offering signing bonuses, apprenticeship programs and performance‐based incentives to attract and retain roofers.

Industry experts recommend that contractors expand their sector exposure and secure material pricing whenever feasible. Those pursuing conventional retail or office projects might face idle crews if pipelines slow down, especially in areas with high vacancy rates. 

“Those who can pivot to data centers, industrial facilities or public sector school work will fare better in the next six to 12 months,” said Basu. 

While public‐sector projects and data centers provide pockets of resilience, broad private‐sector demand continues to cool. Roofing contractors that adjust their focus to growth segments, secure material pricing and invest in labor development will be better positioned to navigate a market in flux.

As Basu concluded, “With elevated policy uncertainty and high borrowing costs, contractors must remain nimble. Those who can pivot quickly to where projects are growing—whether public schools, highways or data centers—will sustain healthier backlogs.”

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QUICK READ: April’s Construction Spending Report

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• Private-Sector Slowdown: Spending on office, retail, and lodging projects declined due to high interest rates and economic uncertainty, reducing opportunities for commercial roofing work.
• Public-Sector Stability: Federal infrastructure funding and school renovation backlogs maintained steady public construction, providing consistent demand for municipal and educational roofing projects.
• Data Centers Remain Strong: Investment in cloud infrastructure drove a 0.2% increase in data center spending, creating demand for specialized roofing systems, such as TPO and reflective membranes.
• Material Cost Volatility: Tariff hikes on steel and aluminum have driven up metal roofing prices by over 50% since April, forcing contractors to adjust their bids and carefully manage supplier relationships frequently.
• Labor Shortages Persist: With over 240,000 unfilled construction jobs and rising labor costs, roofing contractors are using bonuses, training, and incentives to attract and retain skilled workers.

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