Specialized Heavy and Civil Engineering Construction NAICS 237990

Feb 6, 2026 - Conservation and Development Spending to Rise

• North American construction and engineering spending for conservation and development projects is expected to grow by 7% in 2026, according to FMI’s first-quarter 2026 North American Engineering and Construction Outlook. Dredging will make up a significant share of conservation and development activity in 2026. Key projects include channel deepening and widening programs. Congressional proposals could boost US Army Corps of Engineer civil works budgets by as much as 12% in fiscal 2026. Multiphase projects will focus on stormwater reduction and habitat restoration in coastal and other flood-prone regions.
• The construction industry is turning to AI tools and agents to ease project managers’ workloads and prepare for a wave of retirements that could claim 41% of the workforce by 2031, according to the National Center for Construction Research and Education and reporting by The Wall Street Journal. Companies such as Procore, Trimble, and Autodesk are rolling out AI systems that analyze safety risks, summarize documents, extract data, and automate routine tasks, helping address what the Associated Builders and Contractors expect will be a shortage of about 349,000 workers. Startups are using computer vision to track job progress and match workers with open roles, while natural language processing lets superintendents dictate logs and speed daily reporting. Firms say AI can also preserve the expertise of veteran builders by capturing their decision-making and best practices. About 60% of construction companies use some form of AI, but adoption remains uneven.

• The Bureau of Reclamation’s draft environmental review outlines how dam operations at Lakes Powell and Mead may change after 2026 as prolonged drought continues to push both reservoirs toward critical thresholds, according to Engineering News-Record. The analysis evaluates five approaches for coordinating releases, triggering shortages, and protecting infrastructure once the current guidelines expire, but it does not identify a preferred option while basin states negotiate. Reclamation models conditions near and below minimum power pool at Glen Canyon Dam and assesses how alternative outlet works could maintain operations if turbine generation becomes constrained. The draft also examines buffer elevations meant to reduce the risk of hydropower disruptions across nine federally operated facilities. By testing each strategy against hundreds of hydrologic scenarios, the review highlights which operational frameworks best preserve dam performance under extended drought.
• The 43-day federal shutdown, the longest in U.S. history, ended November 12, but construction industry disruptions persist, according to Engineering News-Record. Infrastructure agencies, including the Department of Transportation, the Environmental Protection Agency, and the Army Corps of Engineers, remained under a continuing resolution through January 30, 2026, which limits spending, staffing, and new program starts. Contractors are facing mounting delays in grant agreements, environmental reviews, and permit approvals, particularly for transportation, water, and civil works projects. Inflation and seasonal timing compound risks, as procurement delays may drive up material costs. Public owners must still meet Infrastructure Investment and Jobs Act deadlines despite slowed federal processing. The reopening offers a path forward, but recovery will be gradual, requiring strategic planning across the construction sector to manage uncertainty and maintain momentum.