Skip to main content
Mar 2026

2026 Civil Infrastructure Construction Index: First Quarter

By

Executive Summary

For the most part, the first quarter found contractors feeling fairly positive about the economy and the landscape ahead. Concerns over a recession and sliding demand were eased by reduced inflation and stabilized interest rate expectations. Confidence was scaffolded by strong local indicators, like funded projects; local, state and federal public-sector investment; and strong backlogs.

These conditions fueled contractors’ overall business outlook, with many taking expansionary positions. The only drag on their optimism was operational doubt about their ability to have the headcount and capacity to deliver projects. Those who figure out how to balance productivity and financial stability against growing workloads and the ongoing labor shortage are best positioned for the remainder of the year.

Overall, contractors are hopeful but measured, knowing that capitalizing on the positive trends the sector is experiencing depends on their ability to execute.

 

Key Takeaways

  • The CICI came in at 52.1 in Q1 2026, up from 50.6 in Q4 2025, reflecting modest but broadening optimism across the civil infrastructure sector.
  • Backlog strengthened meaningfully, rising to 57.3 from 52.8, with median firm coverage at approximately 12 months and averages exceeding 15 months.
  • Cost pressures have stabilized but not eased. Materials pricing is predictable, while labor remains the heavier margin burden due to shortages, turnover and the premium on experienced talent.
  • The defining constraint entering 2026 is not a lack of opportunity, but the industry’s capacity to execute profitably against growing workloads and a persistently tight labor market.
  • Firms that invest in leadership depth, workforce development and disciplined backlog management are best positioned to capitalize on a prolonged infrastructure cycle with uneven opportunity.