Structural Steel and Precast Concrete Contractors NAICS 238120

Jul 7, 2026 - Construction Industry Confidence Holds Steady in Q2

• Construction industry confidence held steady in the second quarter, with Engineering News-Record's (ENR) Construction Industry Confidence Index remaining at 54 and its Economic Index staying at 48 for a third consecutive quarter. Index readings of 50 or more suggest a healthy industry. Executives reported weaker views of the current market but slightly improved expectations for the next 12 to 18 months. General contractors and construction managers were the most confident, while design firms improved and subcontractors slipped. Larger firms remained more optimistic than smaller ones. More than 75% of ENR respondents reported upward price pressure. Industry watchers suggest inflation, higher rate expectations, and materials costs are weighing on contractors, though strong demand, especially for data centers, continues to support the market.
• The total value of US construction put in place rose 0.1% in May 2026 compared to the prior month, according to the US Census Bureau. In the nonresidential buildings segment, growth was led by amusement and recreation manufacturing, which grew 0.9%, while overall investment in private nonresidential structures declined 0.3% in May from April. Spending on healthcare and educational projects each rose by 0.3% in May, while office spending increased by 0.2%. Construction spending on commercial projects fell 0.3%, and lodging spending fell 0.2%.

• Facilities Dive reports that modular data center design and construction could help developers ease bottlenecks tied to labor availability, land constraints, permitting, and long lead times for power and electrical equipment. Data center infrastructure firm Flex says modular construction can reduce on-site testing and cabling by 70% and shorten overall project timelines by 30%. The approach moves more work into controlled factory settings, which can support earlier procurement, more consistent equipment performance, and safer worksites. The shift is gaining attention, as 60% of data center projects expected to be online in 2027 have not started construction, according to JPMorgan analysts. Partly due to permitting issues, at least 20 projects worth nearly $42 billion were canceled in the first quarter of 2026, according to Heatmap. Modular power, cooling, and IT systems also may help operators adapt as chip technology and power requirements change.
• Demand for building design services declined in May 2026 over the prior month, as architectural billings remain soft, according to a June report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 44.5 in May from April's reading of 48.3. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries fell to 49.4 in May, down from 57.7 in April, and the index for the value of new design contracts decreased from 48.0 to 45.0. The AIA’s Chief Economist, Richard Branch said, "The uncertainty created by the Iran conflict, and substantially higher energy costs, weighed on architect billings in May. Higher interest rates, rapidly rising material costs, and continued labor shortages all contributed to softer demand."