Higher costs, fewer deals ahead for construction

Contractors could be heading into a leaner period over the next 18–24 months, according to the latest forecast from Associated Builders and Contractors.

What’s Driving the Slowdown

  • Financing is the choke point.
    Interest rates remain the most significant factor killing pro formas and delaying approvals.

  • Data centers are driving the market
    Crews on AI/data center jobs still show ~12 months backlog.
    Everyone else averages ~8 months as new deals dry up.

  • Boom areas cooling fast
    Markets like Nashville, Tampa, Austin, and Denver have hit saturation.
    Higher delivery costs + slower job creation = fewer viable projects.

  • Tariffs reshaping activity
    Lower imports mean fewer warehouse leases and less distribution buildout.
    Manufacturing starts are slowing as companies wait out uncertainty.

  • Public work won’t save everyone.
    Federal IIJA funds expire in September 2026, and municipal budgets are tightening — fewer RFPs are already being reported.

Recovery Timeline
Work volumes may not rebound until late 2026 or 2027, and only if rates drop and federal programs are renewed.

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Nearly 28,000 Work Injuries Every Year Are Linked to Hot Weather

New nationwide research from George Washington University and Harvard T.H. Chan School of Public Health reveals that extreme heat contributes to nearly 28,000 workplace injuries in the U.S. each year, a number experts say is likely an underestimate due to under-reporting. Using OSHA injury data across 48 states, the study found that injury risk begins to rise at 85°F and increases sharply above 90°F.

The effect was observed across almost all industries, including indoor work environments, and workers in states with dedicated heat-protection standards had lower injury rates on hot days. Researchers argue these findings strengthen the case for OSHA’s proposed national standard requiring employers to reduce heat exposure risks.

Beyond heat stroke and illness, even moderate heat was shown to impair physical and cognitive performance, leading to accidents, lost wages, permanent injuries, and premature deaths, underscoring the need for prevention policies before extreme heat events occur.

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Government Shutdown Day Nine: What Contractors Need to Know

The federal government shutdown has now stretched into its ninth day as Congress remains locked in a funding standoff. Senate Republicans are forcing daily votes on the House-passed Continuing Resolution to pressure Democrats to end the shutdown. Still, the bill falls short of the 60 votes required to break a filibuster.

Democrats insist they will not support the measure without commitments to extend Obamacare subsidies and reverse major Medicaid cuts, a negotiation GOP leadership says will only happen after the government reopens. With neither side moving, the shutdown is expected to continue.

For contractors, the shutdown is already having consequences. Federal agencies have moved to contingency plans, delaying approvals, slowing communication, and potentially stalling work tied to public funding. ABC has urged the Senate to pass a clean continuing resolution and is directing contractors to review agency shutdown procedures and legal guidance now available from Wiley Law and Littler, especially for those working in defense, infrastructure, immigration, OSHA, and other regulated areas.

Another key impact: all federal construction economic data has come to a halt. Until reporting resumes, ABC is unable to issue updates tied to spending, hiring, unemployment, job openings, or materials pricing, leaving contractors with less market visibility during the shutdown.

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Understanding Construction Contract Insurance Requirements: How to Avoid Costly Gaps and Legal Risks

Construction contracts often include strict insurance requirements because the work carries high financial and safety risks. When contractors misunderstand or overlook those requirements, a job that looked profitable can quickly become a loss.

Real cases show the impact: contractors have lost millions in unpaid invoices because pollution coverage was missing, or they were forced to buy expensive replacement policies mid-project when exclusions were discovered too late. In some situations—especially near water, rail lines, or high-rise sites- specialized policies such as USL&H, railroad protective coverage, pollution liability, or higher limits are mandatory and can dramatically increase insurance costs.

Insurance language itself is another risk. Terms like indemnity, additional insured, performance guarantees and arbitration carry legal and financial weight. Signing without understanding them can transfer massive liability back onto the contractor.

The safest approach is to review every contract with both a construction attorney and an insurance broker before pricing or signing, so coverage, cost, and compliance are aligned from day one. This prevents delays, protects payments and shields firms from catastrophic exposure.

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A Head of the Game: Navigating Traumatic Brain Injuries in Construction

Construction workers operate in one of the most hazardous industries, and among the most serious risks they face are traumatic brain injuries (TBIs). These injuries can be caused by penetrating trauma or blunt-force impact from falls, struck-by incidents, vehicle crashes, or falling objects. Symptoms vary widely from headaches and dizziness to long-term disability, cognitive decline, or even death, and may appear immediately or over time.

Beyond physical harm, TBIs are closely tied to mental health deterioration. Injured workers often face memory loss, difficulty concentrating, mood changes, anxiety, depression, and an inability to return to work, which compounds stress for both the worker and their family. In an industry where mental health stigma already runs high, many do not seek help or know which resources exist.

Prevention remains the most effective strategy. Employers must enforce proper PPE use, guardrails, fall protection, equipment maintenance, hazard communication, jobsite organization, and ongoing safety training. Transparent incident reporting and documented response protocols are essential when injuries occur.

Support after a TBI is equally important. Early intervention can save lives, and employers should provide medical response, symptom monitoring, mental health resources, accommodation for return-to-work, and guidance for workers’ families. Consistent leadership oversight, including daily inspections and reinforcement of safety culture, is crucial to reducing future risk.

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