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Executive Summary

The construction materials sector enters 2026 on steadier footing, supported by firm pricing, steady demand and improving operating conditions. Public infrastructure spending remains the primary anchor for demand, with a significant portion of Infrastructure Investment and Jobs Act (IIJA) funding still unspent and expected to support activity through and beyond 2026. Large private construction projects, including data centers and advanced manufacturing, are providing additional, multi-year demand in select markets. While residential construction remains softer, strength in public work and private industrial development is supporting stable operating conditions and continued strategic M&A activity.

Strategic Positioning for 2026

As we look ahead to 2026, understanding where demand is durable is more important than ever. The construction materials industry is entering a steadier phase, but outcomes will remain uneven across markets, asset types and end uses. Companies that rely on broad assumptions rather than market-specific insight risk being misaligned as funding, growth and investment vary widely by geography.

Organizations that take these steps will be rewarded in 2026:

  • Align portfolios with public infrastructure and large private projects supported by multi-year funding.
  • Secure long-term access to high-quality reserves, logistics and downstream assets.
  • Pursue portfolio refinement and vertical integration, using M&A to strengthen strategic positions rather than chase short-term growth.
  • Deploy capital selectively, prioritizing strategic fit and long-term demand visibility over scale.
  • Maintain operational discipline as pricing remains firm and cost conditions normalize.

Access the Full Report

Download the full report to explore the market drivers, funding dynamics and sector-specific insights shaping the construction materials industry in 2026, including how public infrastructure spending, private industrial investment and disciplined M&A are influencing performance and long-term positioning.