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Jan 2026

2026 North American Engineering and Construction Overview: First Quarter

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Executive Summary

Total U.S. construction put in place is estimated to decline 1% in 2025, then in 2026 rise 1% to $2.2 trillion. Growth across sectors remains uneven, with data centers and infrastructure work offsetting softer cyclical building segments including multifamily, lodging, commercial, traditional office, amusement and recreation, and manufacturing. In our 2026 industry overview, we offer sector-specific and regional forecasts for the U.S. and Canada, as well as five trends to watch across the built environment to drive resiliency and profitability.

How Can Companies Become More Resilient?

As we move into 2026, understanding the trends shaping the built environment is more important than ever. The industry is entering a transition year marked by heightened uncertainty, uneven performance across sectors and regions, and the convergence of powerful macro forces. But not all sectors, business models and geographies will experience the same outcomes, so leaders who rely on broad assumptions rather than targeted insights risk being caught off guard as conditions evolve.

Organizations that take these steps will be rewarded in 2026:

  • Invest in people and your leadership pipeline.
  • Establish disciplined operating systems and data frameworks.
  • Build resilience in supply chains and business models.
  • Accelerate adoption of AI, automation and digital tools.
  • Understand sectors and geographies and what’s driving demand.

Access the Full Report

Download the full report to understand the detailed market drivers, sector-specific commentary and understand what will impact your engineering and construction business in 2026.