Construction contractors have “dampened” expectations for 2026, aside from surging demand for data centers and power facilities, amid broader worries about the direction of the economy, according to Dampened Expectations: The 2026 Construction Hiring and Business Outlook which the Associated General Contractors of America and Sage released today. In addition to lower expectations, contractors report they have been impacted by tariffs, enhanced immigration enforcement, and challenges finding qualified workers.
“While there are pockets of optimism in select private-sector markets, contractors’ overall sentiment has dampened notably compared to last year,” said Jeffrey Shoaf, the association’s chief executive officer. “One reason for their lowered expectations is that contractors are increasingly worried about the broader economy, the possibility of a recession and the outlook for materials costs.”
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