Asphalt Product Manufacturers NAICS 324121, 324122

Feb 6, 2026 - Slow Spending Growth for Highways, Bridges

• Slower growth in highway, street, and bridge construction spending could affect demand for asphalt products used in road construction. North American construction and engineering spending for roadway projects is expected to grow by 1% in 2026 after slowing an estimated 1% in 2025, according to FMI’s first-quarter 2026 North American Engineering and Construction Outlook. Highway and bridge projects will progress in 2026 as funding through the Biden-era Infrastructure Investment and Jobs Act matures. Spending on bridges has risen amid $5 billion in additional funding from the Federal Highway Administration for deficient bridges, but pavement spending has dropped. While surface transportation reauthorization is likely to come before the end of fiscal 2026 in September, the timing and amounts of funding remain uncertain.
• The roofing industry faces several ongoing challenges, including higher material costs and increased immigration enforcement, but contractors have largely stayed busy, in part by offering numerous roofing systems, according to Roofing Contractor magazine's 2026 State of the Roofing Industry Report. Three-quarters of roofing contractors surveyed said they work with steep-slope asphalt shingles, while 72% said they use low-slope asphalt products. Other popular roofing systems included single-ply (70% of respondents), metal roofing (67%), coatings (64%), and metal accessories (60%). The survey showed that steep-slope shingles account for 22% of residential roofing contractor sales, followed by low-slope products (12%), and single-ply (11%). About 80% of residential roofing contractors reported using asphalt shingles.

• Construction spending for nonresidential buildings is expected to remain sluggish in 2026 and 2027, according to the American Institute of Architects’ (AIA) Consensus Construction Forecast released in January. Total spending for nonresidential building construction is expected to rise just 1% in 2026 and 2.2% in 2027. For the next two years, commercial facility growth will be led by data centers, with spending rising 26.3% in 2026 and 16.5% in 2027. However, offices are expected to see a sharp decline in spending over the forecast period, while warehouse and retail will see weak growth this year and modest gains in 2027. Manufacturing construction spending will fall 3.9% in 2026 and drop 2.8% next year. Spending on institutional projects will grow 2.7% this year, and 2.8% in 2027, led by steady growth in the health sector, but educational, and amusement and recreation project spending will remain relatively flat.
• Contractors are entering 2026 with subdued expectations as economic uncertainty, tariffs, immigration enforcement, and persistent labor shortages weigh on confidence, even as demand for data centers and power projects remains strong. The Associated General Contractors of America’s latest outlook shows contractors are optimistic about data center growth, with 65% expecting the market to grow. Still, contractor sentiment regarding education, lodging, office, and retail construction all declined sharply compared to last year. Many firms report project delays or cancellations due to financing challenges and rising material and labor costs, and more than 80% struggle to fill both craft and salaried positions.