Surveying and Mapping Services NAICS 541370

Dec 15, 2025 - Tariffs Increase Construction Project Stress

• Rising construction project stress could hinder demand for surveying services. More construction projects were paused, abandoned, or delayed in November, according to ConstructConnect’s latest Project Stress Index report. Overall, the index for stressed construction projects rose by 19.9% in November compared to October. Project abandonments jumped 41.1%, while projects on hold were up 16.5%, and bid delays increased 2.9%. In speaking to Construction Dive, ConstructConnect’s associate economist Devin Bell said, "Tariffs have played a key role in defining abandonment activity across both the public and private sectors this year. As companies deplete their pre-Liberation Day stockpiles months after initial tariffs took effect, rising construction costs are pushing some owners and developers toward project cancellations. This pressure is already visible in elevated private sector abandonments, and both sectors continue to run well above their historic averages."
• The Dodge Momentum Index (DMI) decreased 1.1% in November 2025 to 276.8 (2000=100), up from the revised October reading of 280.0. 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 declined by 0.1%, and institutional dropped by 3.4%. Dodge’s associate director of forecasting, Sarah Martin, said, "The influx of high-value data center work, compounded by inflationary cost pressures, continues to support elevated DMI levels. Overall, nonresidential construction is expected to strengthen in 2027, led primarily by data center and healthcare projects. Other nonresidential sectors are more likely to face softer demand and heightened macroeconomic risks."

• Construction firms that work on civil infrastructure projects are holding steady as they manage uncertainties, including waning backlog growth and stagnant margins, according to FMI’s fourth-quarter Civil Infrastructure Construction Index (CICI) survey. The CICI reading for the third quarter was 50.6 compared to 50.8 in Q3 2025 – on a 100-point scale. Any CICI reading above 50 indicates that more civil infrastructure contractors see conditions as good than poor. About half of civil infrastructure contractors reported that their backlogs in Q4 met or exceeded their targets. However, most noted that public projects are making up a growing share of overall backlogs, as private-sector projects face greater uncertainty. Contractors expect backlog growth to slow over the next few quarters as more firms vie for a narrower set of public projects. Contractor margins remained steady but flat in Q4 2025 as bid competition and rising cost pressures eroded pricing power.
• 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, remain 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.