Construction input prices jumped 0.4% to 0.6% in November, marking the fastest annual increase since January 2023. With aluminum, steel, and energy costs climbing amid tariffs, contractors are raising bids, passing on costs, and planning cautiously—even as some remain optimistic about margins next year.
Survey shows strong demand for data centers and power projects in 2026, even as contractors grow more concerned about recession risks, labor shortages and policy uncertainty.
While data centers and power projects are driving commercial demand, contractors say economic uncertainty and workforce shortages could affect residential and mixed-use construction in 2026, according to a new AGC and Sage survey.
Construction employment declined by 11,000 in December and the unemployment rate among workers with recent construction experience jumped to 5.0 percent, AGC said, even as many firms still plan to add headcount in 2026 if they can find qualified workers amid persistent labor shortages.
How technology, workforce investment, and smarter sourcing are reshaping resilience and growth
January 7, 2026
After years of disruption from inflation, labor shortages, and global instability, building supply companies face a pivotal moment. By strengthening supply chains through digital transformation, local sourcing, and workforce development, industry leaders can turn today’s challenges into lasting competitive advantages.
October’s construction starts posted headline growth, but the gains were concentrated in a small number of megaprojects. Outside of those high-value builds, activity softened, and the industry’s labor picture dimmed further as job openings and hiring indicators pointed to ongoing contraction heading into 2026.