FMI’s 2026 Construction Materials Outlook points to a steadying market supported by firm pricing, improving operating conditions and durable public and private demand. M&A activity remains active but disciplined, with companies focused on strategic positioning, asset quality and long-term fundamentals rather than short-term growth.
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This year’s construction materials outlook highlights a resilient industry with strong merger and acquisition activity, driven by strategic growth opportunities and favorable market conditions. The sector remains well-positioned for continued momentum, supported by infrastructure investment, pricing strength and attractive demand tailwinds.
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Looking ahead, operating dynamics should support a strong mergers and acquisitions market for construction materials companies. Factors like guaranteed federal funding, pricing power, cost mitigation strategies and stable end markets all point to continued solid performance.
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Even though the industry was hit with economic headwinds last year, CM firms remained resilient with the headline "demand is strong" resonating throughout the sector. Looking ahead, the threat of a recession still looms. However, there are reasons to be optimistic such as IIJA funding coming online and strong CM demand in other end markets.
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