Painting & Wall Covering Contractors NAICS 238320

Sep 16, 2025 - Nonresidential Construction Planning Improves

• The Dodge Momentum Index (DMI) increased 7.5% in August 2025 to 301.4 (2000=100), up from the downwardly revised July reading of 279.9. 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 8.7%, and institutional rose by 5.4%. For the commercial sector, growth in August was led by data centers, warehouses, hotels, service stations, and parking garages. Some institutional spending slowed, including education and healthcare, but remained in positive territory. Dodge’s associate director of forecasting, Sarah Martin, suggested that after several months of uncertainty, project owners and developers are beginning to move ahead, pricing in higher tariff-related costs.
• Nearly a third of US construction firms have been impacted by intensified immigration enforcement in the last six months, according to a recent report by the Associated General Contractors of America (AGC) and the National Center for Construction Education and Research (NCCER). More stringent enforcement has slowed project delivery and left 88% of firms with craft worker vacancies. One-fifth of construction firms surveyed reported that subcontractors had lost workers, 10% reported increases in absenteeism due to actual or rumored enforcement actions, and 5% said jobsites had been visited by immigration agents. Only 10% of firms use visa programs like H-2B due to approval challenges, leaving many vulnerable to enforcement actions. Industry leaders are urging Congress to increase funding for career and technical education and to create a construction-specific visa program to stabilize the workforce and support long-term growth.

• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the second quarter of 2025 was 59, down four points from the first quarter, according to a July 2025 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the second quarter, the Current Conditions Index portion of the RMI fell five points to 66 compared to Q1 2025. The Future Indicators Index component of the RMI declined by four points to 51. While the RMI remained solidly in positive territory in Q2 2025, the NAHB noted that high interest rates and waning consumer confidence continue to pose challenges to the remodeling industry.
• North American construction and engineering spending in 2025 is expected to grow by 1% after increasing an estimated 7% in 2024, according to FMI’s third-quarter 2025 North American Engineering and Construction Outlook. Nonresidential building construction spending is forecast to rise 1% in 2025, led by growth in data centers (up 32% over 2024 spending), amusement and recreation (+6%), educational (+4%), and transportation (+4%). Nonresidential building construction spending will be tempered by weakness in warehouse (down 5% compared to 2024 spending), commercial (-4%), lodging (-3%), and manufacturing (0%). Amid high mortgage interest rates and a lack of affordability, single-family construction spending is forecast to rise by 1% in 2025. A recent jump in new apartment supply and unfavorable cost conditions will reduce multifamily spending by 9% in 2025.