Site Prep Contractors NAICS 238910

Apr 20, 2026 - Residential Demolitions Flat in 2025

• US residential demolition activity saw a slight 0.1% dip in 2025 compared to 2024, but remained steadily above pre-pandemic levels, according to the National Association of Home Builders' analysis of Construction Monitor data. Residential demolition activity is a demand driver for site prep services. Despite a slight slowdown, demolition permits in 2025 were still up 34.2% from 2018. Demolitions tend to be highly concentrated in a handful of states; the top five states accounted for nearly half of all demolition activity in 2025. Florida leads the US with 14.6% of all US residential demolitions in 2025, followed by California (13.3%), New Jersey (10.4%), Texas (7.2%), and New York (4.1%).
• North American engineering and construction spending in 2026 is expected to remain essentially flat (0% growth) after declining 1% in 2025, according to FMI’s second-quarter 2026 North American Engineering and Construction Outlook. Infrastructure and data center-driven office construction will lead growth, with office rising 6% (with data centers accounting for half of the growth), sewage and waste disposal increasing 8%, conservation and development up 6%, and power and water supply advancing 4% and 5%, respectively. Commercial construction spending is projected to decline 6% amid continued softness in retail and warehouse construction, while lodging is forecast to fall 4%. Healthcare and transportation construction are expected to increase 2%, while education remains flat, and segments including public safety and manufacturing post slight declines. Residential construction remains constrained by high mortgage rates and affordability pressures, with single-family spending declining 2% and multifamily down about 1% as elevated supply and uneven rent growth weigh on activity. Overall, 2026 reflects a fragmented market, with growth concentrated in infrastructure and data centers, while rate-sensitive private development remains weak.

• The Dodge Momentum Index (DMI) increased 1.8% in March 2026 to 250.5 (2000=100), up from the revised March reading of 246.2. The Momentum Index is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which has been shown to lead construction spending for nonresidential buildings by a full year. On a monthly basis, the commercial planning component improved by 7%, while the institutional component declined by 8.8%. Dodge’s associate director of forecasting, Sarah Martin, said, "Planning momentum in March was powered almost entirely by data center projects, with most other sectors easing back,” said Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “For some categories, this reflects a natural reset after the outsized growth in late 2025. But for others, elevated macroeconomic risks are likely beginning to feed into planning decisions."
• Bedrock Robotics, a San Francisco start-up developing autonomous systems for excavators and other heavy construction equipment, has raised $270 million in new funding, valuing the company at $1.75 billion, according to The New York Times. The technology is designed to automate earthmoving and site preparation tasks while working alongside human operators, thereby increasing efficiency, safety, and productivity on construction sites. The approach comes as the construction industry faces persistent labor shortages, with Associated Builders & Contractors estimating the sector will need 349,000 additional workers in 2026 and 456,000 in 2027 to meet demand. Bedrock’s systems can be added to existing machines from manufacturers such as Caterpillar, allowing contractors to deploy the technology without replacing equipment. For the construction industry, the technology could help firms complete projects faster, extend equipment operating hours, and offset workforce shortages as demand for housing, factories, and data centers grows.