Weekly Construction Market Intelligence Report Dec 8–15, 2025

Construction Industry | December 8–15, 2025

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Executive Summary

The U.S. construction market closed mid-December 2025 with sharp contrasts across sectors. Capital continues to flood into data centers, advanced semiconductor manufacturing, and mission-critical infrastructure, while more traditional nonresidential segments show visible signs of contraction. This divergence is no longer cyclical noise. It reflects a structural reallocation of capital toward compute, power, water, and precision manufacturing.

Major project awards announced this week exceeded $3.5 billion, concentrated almost entirely in specialized programs requiring advanced engineering, labor coordination, and regulatory compliance. At the same time, construction job openings fell to what analysts described as “extraordinarily low” levels in October, a signal that hiring appetite outside these growth sectors has weakened meaningfully.

Federal policy uncertainty added another layer of complexity. Grant cancellations, shifting tariff dynamics, and heightened antitrust scrutiny are introducing execution risk for owners and contractors alike. Yet despite these headwinds, confidence indicators suggest guarded optimism for a 2026 recovery, contingent on financing stability, labor availability, and the industry’s ability to execute complex work with greater precision and documentation.

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Major Project Awards (Over $10M)

AECOM | FAA Air Traffic Control Modernization | $270M | 10-Year IDIQ
AECOM secured a long-term indefinite delivery, indefinite quantity contract with the Federal Aviation Administration to support modernization of air traffic control infrastructure across the Eastern, Central, and Western United States. The scope includes design support and construction administration for new and upgraded control towers, radar installations, and related systems. Initial task orders were awarded for Florence Regional Airport in South Carolina and Chicago Rockford International Airport in Illinois. The contract reinforces sustained federal investment in aviation safety and resiliency. Source

Ferrovial | Texas Water Infrastructure | $721M | Multi-Year
Ferrovial continues to deepen its presence in Texas water infrastructure with a combined $721 million in work spanning Austin and Fort Worth. The projects include a 105-foot-deep pump station tied to TxDOT’s I-35 Capital Express program and a major water treatment plant expansion. These awards underscore water’s transition from cyclical spending to a long-term, secular growth market driven by population growth, climate pressures, and aging assets. Source

Gilbane Building Company / DPS Advanced Technology | NanoFab Reflection Facility | Albany, NY | $614M
Gilbane and DPS Advanced Technology topped out a 310,000-square-foot cleanroom facility as part of the $1 billion Albany NanoTech Complex. The NanoFab Reflection facility targets the highest LEED certification and will support advanced semiconductor research and manufacturing. The project highlights the scale and technical sophistication now required to compete in federally supported semiconductor onshoring initiatives. Source

Garco Construction | Solstice Advanced Materials Expansion | Spokane Valley, WA | $200M
Garco Construction was awarded a $200 million expansion for Solstice Advanced Materials, adding 110,000 square feet of production space to double sputtering target manufacturing capacity. The project incorporates advanced quality control systems and automation designed to deliver a projected 25 percent productivity improvement. This award reflects continued investment in materials critical to electronics, energy, and defense supply chains. Source

Turner Construction / SPC Construction | Battery Park City Resiliency Project | New York City | $1.7B
New York City advanced its first progressive design-build resiliency project, awarding Turner Construction and SPC Construction a $1.7 billion contract to address flooding and rainfall risks in Battery Park City. The project sets a precedent for collaborative delivery models in climate-driven infrastructure, balancing speed, stakeholder coordination, and evolving design requirements. Source

Alberici / JE Dunn | Louisiana Shipyard Expansion | $300M
Alberici and JE Dunn broke ground on a 300,000-plus-square-foot autonomous ship production facility in Louisiana. The project supports advanced maritime manufacturing and reflects rising federal and private investment in domestic shipbuilding capacity. Source

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Growth and Expansion Signals

Jacobs Engineering | Data Center Pipeline Expansion | 5x Growth
On its latest earnings call, Jacobs reported a fivefold expansion in its data center pipeline. Leadership identified data centers, life sciences, semiconductor fabs, and water infrastructure as core growth drivers for fiscal 2026. This aligns with broader market signals showing hyperscale and AI-driven infrastructure as the dominant source of new construction demand. Source

Skender Construction | Executive Restructuring | $546.8M 2024 Revenue
Skender announced a series of leadership promotions, including Andy Halik to President and Brian Bukowski to COO. Additional regional and interior leadership appointments point to continued professionalization and consolidation in the mid-market general contracting segment. Source

AtkinsRéalis | Strategic Acquisition | $300M Investment
AtkinsRéalis acquired a 70 percent majority stake in David Evans Enterprises, expanding its footprint across transportation, water, and specialized infrastructure services. The move reflects continued M&A activity aimed at capability expansion rather than pure geographic scale. Source

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Industry Trends

Data Center Construction Dominance
Data centers now sit at the center of the construction economy. U.S. electricity demand rose an estimated 22 percent in 2025, driven largely by AI workloads, with projections calling for threefold growth by 2030. Power utilities, regulators, and developers are actively debating how to manage grid capacity, permitting timelines, and load forecasting. For contractors, data center capability has shifted from optional to foundational. Source

Semiconductor and Advanced Manufacturing Boom
Advanced manufacturing continues to benefit from federal onshoring initiatives and state-level incentives. New York’s semiconductor programs alone represent more than $10 billion in committed and planned investment. Contractors with cleanroom, precision installation, and commissioning expertise are commanding premium positioning and longer-term pipeline visibility. Source

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Labor and Regulatory Updates

Construction Job Openings Decline Sharply
Construction job openings fell to approximately 213,000 in October, down 36,000 year over year. The decline reflects contraction outside specialty sectors rather than broad labor abundance. Employers are increasingly adopting cautious hiring strategies, prioritizing productivity and retention over expansion. Analysts expect softness to persist through Q1 2026, with recovery potential emerging in the second half of the year. Source

Federal Grant Funding Disruptions
Federal agencies canceled more than $7.5 billion in awards this quarter, affecting 321 projects. Notably, Sublime Systems lost an $87 million grant for a low-carbon cement plant in Massachusetts, delaying construction and triggering workforce reductions. These disruptions highlight the fragility of capital stacks tied to public funding.

FTC Enforcement and Materials Risk
The Federal Trade Commission’s attempt to block a $725 million Liquid Nails acquisition underscores heightened scrutiny of materials consolidation. Input cost volatility remains a concern, particularly for contractors exposed to steel, cement, and specialty materials.
Source

New York City Project Labor Agreements
Roughly $7 billion in New York City work is now tied to updated Project Labor Agreement requirements, increasing compliance obligations and labor cost pressure. Contractors operating in major metros should expect similar policy frameworks to expand.

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Why This Matters for Contractors

As labor availability tightens and project complexity rises, execution discipline has become a defining competitive factor. Contractors can no longer rely on informal reporting or delayed reconciliation to manage labor, compliance, and cost exposure. Platforms like Rhumbix help standardize timekeeping, production tracking, T&M documentation, and credential management directly from the field. By capturing accurate workforce records at the source, teams gain near-real-time visibility into labor cost, crew deployment, and compliance risk while corrective action is still possible. In a market defined by specialty labor scarcity and margin pressure, digital field visibility has become a baseline requirement for delivering complex programs through 2026 and beyond. Learn more.

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Companies to Watch

Jacobs Engineering
A rapidly expanding data center pipeline positions Jacobs to capture a disproportionate share of AI-driven infrastructure investment.

Gilbane Building Company
Proven delivery on advanced cleanroom facilities strengthens Gilbane’s national positioning in semiconductor manufacturing.

Skender Construction
Leadership restructuring and a strong revenue base suggest readiness for continued consolidation and geographic expansion.

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Bottom Line

Despite weakness in traditional nonresidential segments, the construction industry’s growth story remains intact. Data centers, advanced manufacturing, water, and resiliency infrastructure are reshaping capital allocation and redefining what it takes to compete. Contractors that specialize, invest in execution visibility, and manage labor with precision will be best positioned to outperform as the market recalibrates into 2026.