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ABC’s Construction Backlog Indicator Rises Again in September on Data Center Strength

Tue, 13 Oct 2026 18:30:32 GMT

Associated Builders and Contractors’ Construction Backlog Indicator increased to 8.7 months in September, according to an ABC member survey conducted Sept. 21 to Oct. 5. The reading is up 0.2 months on both a monthly and yearly basis.

View ABC's Construction Backlog Indicator and Construction Confidence Index for September. View the full Construction Backlog Indicator and Construction Confidence Index data series.

Commercial and institutional backlog, which dipped in the middle of 2026, rose to the highest level since July 2025. Heavy industrial backlog, while still up 0.5 months over the past year, fell to its lowest level since March.

ABC’s Construction Confidence Index reading for staffing increased in September, while the readings for sales and profit margins fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“Backlog increased for the second straight month in September as data center work continues to keep contractors busy,” said ABC Chief Economist Anirban Basu. “The 15% of ABC members under contract to work on data centers averaged 11.3 months of backlog in September, a full three months more than ABC members that are not. This disproportionately benefits the largest contractors; 39% of contractors with greater than $100 million in annual revenues have data center work right now compared to just 1 in 10 contractors with fewer than $100 million in annual revenues.

“At the same time, rising materials and labor and borrowing costs continue to put pressure on contractors,” said Basu. “More than 1 in 4 contractors expect their profit margins to contract over the next six months, the highest share since November 2025. Those same cost pressures have suppressed sales expectations, which also fell to an 11-month low in September.”

ABC Report: Proactive Safety Technology Protects Workers, Jobsites

Mon, 05 Oct 2026 15:16:50 GMT

Associated Builders and Contractors has released its sixth annual construction technology report on health and safety tech and innovation, which spotlights how contractors are leveraging technology, data and collaboration to address the industry’s health and safety challenges while creating measurable improvements in workforce performance and operational excellence. ABC released the report during Careers in Construction Month to celebrate construction safety professionals’ commitment to protecting workers.

“The speed of health and safety innovation is redefining construction excellence,” said Matt Abeles, ABC vice president of construction technology and innovation. “ABC contractors expand their focus beyond traditional jobsite safety to create environments that protect the physical, mental and emotional well-being of every single worker. This report explores the technologies, strategies and best practices that help contractors reduce risk, improve workforce health and build stronger safety cultures. From wearable technologies and AI-powered risk detection to mental health initiatives, fatigue and hydration management, environmental monitoring and connected jobsite solutions, the tools and programs in this report demonstrate how the industry’s leaders are putting in the work to make total human health an essential part of every project.”

“While the construction industry continues to evolve, our commitment to protecting people remains unchanged,” said Adam Latourelle, chair of ABC’s Construction Technology and Innovation Committee and chief information officer, the BR Cos., Glendora, California. “As projects become more complex, innovative technologies are creating new opportunities to strengthen jobsite health and safety. The companies featured in this report demonstrate that technology is no longer simply a tool for improving productivity—it is becoming an essential part of modern health and safety programs. Technology alone does not create a safer workplace. Strong leadership, engaged employees and a culture that prioritizes health and safety remain the foundation of every successful organization.”

ABC’s Tech and Innovation Report: Health and Safety features case studies authored by safety and risk management leaders at ABC member contractors finding better ways to keep workers hydrated in the heat, detect patterns in incident data to eliminate injuries and establish safety standards for hand tools. Health and safety experts also described the deployment of Relationship Dynamics Ambassadors to connect employees with coaching and resources, better jobsite security monitoring, faster and safer inspections with drones and digitizing pre-task planning and hazard recognition.

The report, published by the ABC National Construction Technology and Innovation Committee, was made possible by ABC’s 2026 Tech Alliance members—Arcoro, Autodesk Inc., BuildOps, Datagrid, Document Crunch, Egnyte, Kojo, KPA, Sage, Sentriforce, Smartapp, SmartBuild, SubHQ, Stack and Trimble—and ABC strategic partner Milwaukee Tool.

ABC creates the conditions for construction companies to innovate, differentiate and attract and educate top talent to win and deliver work safely, ethically and profitably for the betterment of the communities in which they work. ABC continues to invest in helping its members select high-quality construction technology through its Tech Alliance and Tech Marketplace.

Visit abc.org/techreport to read the digital report.

ABC members received the print edition of the Tech and Innovation Report: Health and Safety with the September/October issue of Construction Executive, the magazine for the business of construction.

New Research Reveals Multiskilled Crews Can Reduce Construction Completion Time by 30%

Mon, 05 Oct 2026 15:13:48 GMT

Ahead of Careers in Construction Month, Associated Builders and Contractors has highlighted new research showing that multiskilled construction crews can reduce completion time by about 30% and increase production by 37% to 50% on construction scopes where multiple trades must work in tight sequence. The findings come from controlled field trials detailed in the Simplar Foundation’s Improving Productivity in Multi-Trade Construction Workflows, the second report from the first-ever national multiskilling dataset.

View pictures of multiskilled workers.

“These findings show that multiskilling is more than a workforce strategy. It can also be a project-delivery strategy,” said Tiffany Robinson, ABC vice president of workforce and safety policy. “Careers in Construction Month is an opportunity to underscore the value of building broader skills that bolster productivity on jobsites. Multiskilling can expand workers’ capabilities and career opportunities while giving the industry a practical strategy to address persistent labor shortages and increase America’s capacity to build.”

This study examines the time reduction and production gain of multiskilled workflows compared to traditional single-trade workflows for construction scopes and assemblies that require frequent trade-to-trade handoffs to be coordinated in sequence. The analysis was based on controlled field trials across 11 construction activities with 10 trade-to-trade handoffs at the Cianbro Institute in Pittsfield, Maine.

“This is compelling evidence that multiskilling can significantly enhance productivity, efficiency and competitiveness across the industry,” said Michael Bennett, senior executive vice president and chief administrative officer of The Cianbro Cos., Pittsfield, Maine. “Specifically, in this report we see that work productivity is accelerated when the work moves efficiently from one trade to the next. By combining rigorous research with real-world field applications, this study demonstrates how innovation in workforce development and investment in competency-based education can create a more agile workforce—one that delivers greater value to clients while expanding career opportunities for craft professionals. Cianbro is honored to contribute to this invaluable research.”

View videos of multiskilling in action and multiskilled workers speaking to the benefits.

Examples of handoffs affecting multiskilled work:

Phased school renovation: Work is often limited to nights, weekends, breaks or summer windows. Repeated handoffs among demolition, structural systems (formwork, reinforcing steel, concrete, masonry), mechanical, electrical, plumbing, finishes, inspections and turnover activities can affect reopening dates.
Transit station or airport terminal renovation: Work occurs around public access, security, operations, inspections and phased turnover. Trade-to-trade delays can disrupt passenger-facing areas and downstream activities.
Bridge or roadway closure work: Multiple trades and crews must complete work within limited closure windows. Handoff delays can affect lane reopening, public access and traffic.
Water or wastewater treatment plants: Equipment installation, rigging, setting, piping, electrical, controls, insulation, flushing, testing and startup often must be sequenced tightly to enable plant operations.

“Multiskilling increases productivity by reducing waiting, setup, reorientation, coordination and restart between crews,” said Brian Lines, Ph.D., P.E., principal investigator and associate professor, Civil, Environmental & Architectural Engineering, University of Kansas. “We saw firsthand that qualified multiskilled crews enable reduced-handoff workflows, which in turn reduces unnecessary crew changes, improves workflow continuity and makes production more predictable. For owners, contractors, policymakers and project teams, multiskilling is the ideal strategy where repeated handoffs are likely to create measurable delays.”

Highlights in this second of three releases of the data series include:

Multiskilled workers did not have to complete individual tasks faster to improve efficiency. By reducing handoffs between trades, projects were completed about 30% faster, while traditional single-trade workflows increased completion time by roughly 40%.
Fewer trade handoffs allowed crews to accomplish more work in the same production window. Workflows with fewer handoffs completed 37% to 50% more installed work in the same amount of time.
The multiskilled team increased scope coverage and capability. Two multiskilled workers completed a scope spanning seven trade functions without repeatedly handing off the work to separate crews. The one-trade workflow used 12 workers across the same sequence and transferred the work from one trade to another 10 times. Both crews held credentials for each trade performed.
Multiskilling was most effective when frequent handoffs were concentrated within closely sequenced work activities. The size of the benefit was up to 92% less elapsed time, depending on how frequent and disruptive the handoffs were. Across 12 scenarios and 120,000 simulation runs, reducing repeated handoffs shortened the time required for the defined work scope.

This new research series, which launched Sept. 2, was conducted by the Simplar Foundation and three university research partners: Arizona State University, the University of Kansas and the University of North Carolina at Charlotte. The third and final installment of research will be released later this year.

To explore the full dataset, visit simplarfoundation.org/multiskilling/. To learn more, visit abc.org/multiskilling.

ABC: Construction Layoffs Fall to All-Time Low in August

Mon, 05 Oct 2026 15:08:05 GMT

The construction industry had 251,000 job openings on the last day of August, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings decreased by 48,000 last month but are up by 38,000 from the same time last year.

“The August JOLTS data indicate that both the demand for and supply of construction workers are decreasing,” said ABC Chief Economist Anirban Basu. “Job openings fell to the lowest level since March, while just 99,000 construction workers were laid off for the month, the fewest in any month since the start of this data series in December 2000.

“These dynamics may seem contradictory but are consistent with ongoing weakness in the residential segment coupled with booming data center activity and the resulting scarcity of certain skilled trades workers,” said Basu. “Nonresidential contractors, which on net expect to increase their staffing levels over the next six months, according to ABC’s Construction Confidence Index, will likely experience faster labor cost escalation due to these shortages in certain occupational categories like electricians and HVAC workers.”

ABC: Data Centers Power Construction Job Growth in September

Mon, 05 Oct 2026 15:04:30 GMT

The construction industry added 11,000 jobs on net in September, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. On a year-over-year basis, industry employment has increased by 109,000 jobs, or 1.3%.

Nonresidential construction employment increased by 16,100 positions in September, with gains in all three subcategories. Nonresidential specialty trade added the most jobs, growing by 12,300 positions, while heavy and civil engineering and nonresidential building added 2,600 and 1,200 jobs, respectively.

The construction unemployment rate was 3.5% last month. Unemployment across all industries increased to 4.2% but is 0.2 percentage points lower than one year ago.

“The construction industry added jobs for the seventh straight month in September,” said ABC Chief Economist Anirban Basu. “Industry employment growth is increasingly concentrated on the nonresidential side as the data center boom continues to support rapid hiring of certain specialty trade contractors.

“At the same time, the residential segment continues to hemorrhage workers, and that side of the industry has now shed 1.0% of its employment base over the past year,” said Basu. “Contractor hiring expectations remain elevated, according to ABC’s Construction Confidence Index, an outlook that seems justified given the insatiable demand for new data centers.”

ABC: Construction Materials Prices Jump Again in August

Mon, 21 Sep 2026 13:58:59 GMT

Construction input prices increased 1.2% in August compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices also increased 1.2% for the month.

Overall construction input prices are 8.9% higher than one year ago, while nonresidential construction input prices are 8.8% higher. Prices increased in 2 of the 3 energy subcategories last month. Crude petroleum prices expanded 5.2% and unprocessed energy materials prices rose 1.5%, while natural gas prices were down 11.6% in August.

“Construction input prices surged again in August, and the increases were widespread across materials,” said ABC Chief Economist Anirban Basu. “Prices for iron and steel, softwood lumber, switchgear, copper wire and cable, and several derivative metal products are now up more than 10% year over year. While contractors remain optimistic about their margins, according to ABC’s Construction Confidence Index, ongoing input price escalation is likely to weigh on profitability over the next several months. This is especially true given recent escalation in the trade war with Canada and the fact that oil prices have jumped back above $100 per barrel.”

ABC Survey: 1 in 6 Members Perform Data Center Work; Backlog Rebounds in August

Mon, 21 Sep 2026 13:52:47 GMT

Associated Builders and Contractors reported today that its Construction Backlog Indicator rebounded to 8.5 months in August, according to an ABC member survey conducted Aug. 20 to Sept. 4. The reading is up 0.5 months from July and unchanged on a year-ago basis.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Only the largest contractors experienced a decline in backlog in August. On a year-over-year basis, backlog gains are concentrated among the smallest contractors (those with less than $30 million in annual revenues).

ABC’s Construction Confidence Index readings for sales and profit margins increased in August, while the reading for staffing levels fell. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“Backlog rebounded from July’s cyclical low but remains below the prevailing level from the last several months,” said ABC Chief Economist Anirban Basu. “Data centers continue to keep contractors busy even as activity softens in other segments. Although the backlog gap between contractors with and without data center work narrowed in August (9.9 vs. 8.3 months, respectively), that appears to reflect more contractors securing work in the data center segment rather than a broader structural trend. Roughly 1 in 6 ABC members is currently under contract to work on a data center, the highest proportion on record.

“The share of contractors that intend to cut their staffing levels over the next six months rose to 12.3% in August, the most in any month since December,” said Basu. “At the same time, there was a sharp increase in the number of contractors who, unprompted, mentioned labor shortages in the survey. With construction job openings at a near two-year high, it appears that labor scarcity is reemerging as a major headwind for the industry.”

ABC on August Jobs Report: Nonresidential Specialty Contractors Power Construction’s Employment Growth

Mon, 14 Sep 2026 17:28:07 GMT

The construction industry added 22,000 jobs on net in August, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. On a year-over-year basis, industry employment has expanded by 120,000 jobs, an increase of 1.5%.

Nonresidential construction employment grew by 10,400 positions in August, with gains in 2 of the 3 subcategories. Nonresidential specialty trade added the most jobs, increasing by 7,800 positions, followed by heavy and civil engineering, which added 4,400 jobs. Nonresidential building lost 1,800 jobs in August.

The construction unemployment rate fell to 3.1% in August, down 0.1 percentage points from August 2025. Unemployment across all industries remained unchanged at 4.1% and is 0.2 percentage points lower than one year ago.

“The construction industry added jobs for the sixth straight month in August and, on a year-over-year basis, is growing its employment base at the fastest pace since February 2025,” said ABC Chief Economist Anirban Basu. “That growth has occurred despite a shrinking homebuilding segment.

“Hiring remains highly concentrated in the nonresidential specialty trade contractor category, a byproduct of the rapid and ongoing increase in data center-related construction activity,” said Basu. “Given the lengthy backlog levels of contractors with data center work, as reflected in ABC’s Construction Backlog Indicator, the artificial intelligence buildout will continue to support construction employment growth during the next several months.”

ABC: July Nonresidential Construction Spending Growth Entirely Due to Data Centers

Tue, 08 Sep 2026 12:41:53 GMT

National nonresidential construction spending increased 0.1% in July, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.286 trillion.

Spending was down on a monthly basis in 8 of the 16 nonresidential subcategories. Private nonresidential construction spending was up 0.4%, while public nonresidential spending was down 0.2% in July.

“The increase in nonresidential construction spending that occurred in July was entirely due to data centers,” said ABC Chief Economist Anirban Basu. “Excluding that booming category, nonresidential spending fell for the second straight month and is down to the lowest level since September 2023.

“Nonresidential activity is even more concentrated given that the power category, which has been boosted by the electricity needs of data centers, has also grown substantially over the past year,” said Basu. “While contractors remain upbeat about their sales over the next six months, according to ABC’s Construction Confidence Index, that upbeat outlook is increasingly dependent on a single sector.”

ABC: Construction Job Openings Up by 28,000 to Near-2-Year High in July

Tue, 08 Sep 2026 12:34:54 GMT

The construction industry had 326,000 job openings on the last day of July, according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings increased by 28,000 last month and are up by 21,000 from the same time last year.

“The construction job opening rate rose to the highest level in nearly two years in July,” said ABC Chief Economist Anirban Basu. “Contractor hiring also accelerated for the month, while layoff activity slowed. This meaningful improvement in labor demand is a function of insatiable demand for data centers and the accompanying strength in power-related construction.

“With contractors broadly optimistic about expanding their staffing levels over the next six months, according to ABC’s Construction Confidence Index, it’s possible that reemerging worker shortages will put upward pressure on labor costs over the next several months.”

ABC: Construction Materials Prices Flat in July, Up 7.4% From a Year Ago

Mon, 24 Aug 2026 16:52:14 GMT

Overall construction and nonresidential input prices both increased 0.1% in July compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price data.

Construction input prices are 7.4% higher than one year ago, while nonresidential construction input prices are 7.2% higher. Prices decreased in 2 of the 3 energy subcategories last month. Crude petroleum prices decreased 11.9%, and unprocessed energy materials decreased 7.4%. Natural gas prices were up 10.4% in July.

“Construction input prices were virtually unchanged in July, but that relatively tame behavior can be traced to the dip in fuel prices that occurred at the start of the month,” said ABC Chief Economist Anirban Basu. “Diesel fuel prices, for instance, surged more than $0.50 per gallon from the week prices were measured for the index through the end of July. Given the subsequent rebound in oil prices and ongoing increases in certain materials prices, such as lumber and iron and steel, materials prices will almost certainly continue to climb in the months to come.

“Materials prices remained up more than 7% on a year-over-year basis in July,” said Basu. “Despite this significant annual increase and the prospect of ongoing inflation, contractors on net expect their profit margins to expand over the next six months, according to ABC’s Construction Confidence Index.”

ABC’s Construction Backlog Indicator Plummets in July

Mon, 17 Aug 2026 15:10:48 GMT

Associated Builders and Contractors reported today that its Construction Backlog Indicator fell to 8.0 months in July, according to an ABC member survey conducted July 20 to Aug. 4. The reading is down 0.8 months from both a month and year ago.

View the full Construction Backlog Indicator and Construction Confidence Index data series.

Every industry, region and company size experienced a decline in backlog in July. The South remains the only region with larger backlog than one year ago.

ABC’s Construction Confidence Index readings for sales and staffing levels also fell in July, while the reading for profit margins increased. The readings for all three components remain above the threshold of 50, indicating expectations for growth over the next six months.

“Backlog fell sharply in July and is down to the lowest level since January,” said ABC Chief Economist Anirban Basu. “The data center boom masks the depth of this weakness, as there is a lack of momentum in any other segment. The 88% of ABC contractors that are not under contract to work on a data center had an average 7.5 months of backlog. That compares poorly to the 12% that are under contract to work on data centers, which have 11.4 months of backlog. This dynamic has been particularly difficult for small and mid-size contractors. Backlog in the $30-$50 million annual revenue category, for instance, fell to the lowest level since March 2020.”

ABC: Construction Job Openings Increase By 14,000 in June, Up 36% Year Over Year

Mon, 10 Aug 2026 15:42:37 GMT

The construction industry recorded 305,000 job openings on the last day of June, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings increased by 14,000 last month and are up by 81,000 from the same time last year.

“Interpreting these data is often challenging,” said ABC Chief Economist Anirban Basu. “One could take these figures at face value and conclude that construction is thriving and driving demand for workers higher. Indeed, ABC’s Construction Confidence Indicator shows that the average contractor expects rising revenues and employment over the next six months.

“But June’s construction spending report indicates that overall residential and nonresidential construction spending continues to decline,” said Basu. “Accordingly, one might look for other explanations for rising construction job openings, including demographic considerations.

“Many contractors view a structural shortfall of skilled labor as their primary challenge because many highly experienced, productive workers are retiring,” said Basu. “It is conceivable that these workers are being replaced with less skilled and productive workers, thereby requiring a few workers to be replaced by many.

“Alternatively, the data may not be capturing all that transpires,” said Basu. “It may be that certain people who had been working in construction were doing so without proper documentation. At least some of these workers are no longer available at jobsites, inducing faster hiring and expanding job openings as contractors work to replace them.”

ABC: June Nonresidential Construction Spending Up on Strength of Data Centers

Mon, 10 Aug 2026 15:38:27 GMT

National nonresidential construction spending rose 0.1% in June, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.277 trillion.

Spending was up on a monthly basis in 8 of 16 nonresidential subcategories. Both public and private nonresidential spending were up 0.1% in June. Private nonresidential construction spending was down nearly 5% from a year ago.

“Through April 2025, private nonresidential construction spending ascended to $806.1 billion on a seasonally adjusted annual rate basis, an all-time high,” said ABC Chief Economist Anirban Basu. “Since then, that figure has expanded only three times over the past 14 months.

“Despite an ongoing data center construction boom, private nonresidential construction spending has declined to a seasonally adjusted annual rate of $745.3 billion since the April 2025 peak, which translates into a decline exceeding 7%,” said Basu. “Tellingly, private nonresidential construction spending excluding data centers fell 0.6% in June 2026 and is down 7.9% year over year.

“Meanwhile, data center construction was up 7% in June and up 46% from a year ago. Contractors working on data centers continue to benefit from this momentum. According to ABC’s latest Construction Backlog Indicator, the 13% of ABC members under contract to work on data centers have significantly higher backlog (11.0 months) than the 87% that are not (8.5 months).”

Governor’s Data Center Construction Framework Would Shut Out ABC Members

Mon, 27 Jul 2026 15:14:31 GMT

By Luiza Mills, Interstate Electrical Services Corporation

Meta Platforms Inc. and Associated Builders and Contractors, Inc., our chapter’s national parent organization, recently announced a partnership to educate and provide construction-ready career pathways for thousands of data center construction technicians as a meaningful step toward meeting the growing demand for data centers workers. Unfortunately, the Healey/Driscoll administration’s subsequent framework for data center construction in Massachusetts, which includes a provision promoting project labor agreements, will effectively shut our member firms out of the process due to the PLA’s union labor requirement and, more broadly, is a disincentive to private development in the Commonwealth.

America’s Workforce Academy is a $115 million investment in the next generation of construction professionals that includes a five-week training program and a job offer from contractors working on Meta projects at the conclusion of the program. It creates another pathway into the construction industry and can serve as a precursor to a formal open shop or union apprenticeship program.

“America’s Workforce Academy is a transformational endeavor creating incredible careers in construction. ABC is proud to work with Meta, CBRE and academy community partners to welcome all who want to build their career dreams as construction professionals,” said Michael Bellaman, ABC president and CEO. “ABC believes in creating opportunities for all on a level playing field and is ready to meet the industry’s needs and help individuals achieve their career dreams. ABC is honored to partner with Meta to expand the pipeline of data center construction workers.

The American Workforce Academy partnership will:

Build a Sustainable Talent Pipeline: establishes scalable, repeatable workforce development models that align industry, training providers and workforce systems to meet ongoing demand.
Deliver Accelerated, Job-Ready Training: provides standardized, industry-aligned training that equips participants with the skills, safety knowledge and jobsite readiness needed to contribute quickly and effectively.
Ensure Safety and Productivity from Day One: prepares participants to meet industry and project-specific safety standards and contribute productively on the jobsite from the outset.

But excitement about the partnership was quickly dashed when the Healey/Driscoll administration made PLAs a condition for receiving state tax incentives for data center projects. With the PLA, the Commonwealth is effectively telling businesses that if they want to build in Massachusetts, they don’t have the option of using ABC members on their privately funded projects. The benefit from tax incentives will also be offset by the additional cost of building with a PLA.

Meanwhile, other states are aggressively supporting data centers and not imposing burdensome construction requirements. The imposition of PLAs on private development will only exacerbate the challenges we face in attracting businesses to the Commonwealth. Meta is just one example of the scores of national corporations that have established relationships with ABC members and other open shop contractors across the country.

As Bellaman said, “The sustained demand for data center construction technicians means the industry needs an all-of-the-above approach to address this shortage and grow the construction talent pool.”

We hope the Healey/Driscoll administration will consider these points and reconsider its framework for data center construction in Massachusetts.

ABC: Construction Materials Costs Fall with Oil Prices in June

Tue, 21 Jul 2026 12:57:58 GMT

Construction input prices decreased 1.1% in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices also decreased 1.1% for the month.

Overall construction input prices are 7.6% higher than one year ago, while nonresidential construction input prices are 7.4% higher. Prices decreased in 2 of the 3 energy subcategories last month. Crude petroleum prices declined 12.1%, and unprocessed energy materials fell 8.1%. Natural gas prices were up 16.6% in June.

“Aggregate construction input prices receded in June due to the steep decline in oil prices that occurred throughout the month,” said ABC Chief Economist Anirban Basu. “Despite that decline, however, ongoing materials price escalation is likely over the coming months. The conflict in Iran has resumed, triggering a roughly 15% rebound in oil prices, and tariff-affected commodities like iron, steel and copper continue to experience steep price increases.

“While contractors remain optimistic about their margins, according to ABC’s Construction Confidence Index, higher input costs will likely weigh on profitability during the second half of 2026," said Basu.

ABC: Construction Job Openings Rise to 10-Month High in May, Hiring Remains Historically Slow

Mon, 13 Jul 2026 16:20:52 GMT

The construction industry had 298,000 job openings on the last day of May, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey. JOLTS defines a job opening as any unfilled position for which an employer is actively recruiting. Industry job openings increased by 32,000 last month and are up by 76,000 from the same time last year.

“Construction job openings rose to a 10-month high in May,” said ABC Chief Economist Anirban Basu. “Unfortunately, that increase likely reflects exceptional demand for certain occupations critical to data center buildouts, like electricians, rather than increased industrywide demand for labor.

“The construction hiring rate fell sharply in May and, at 3.5%, matches February’s all-time low," said Basu. "Rising layoff activity and a falling quit rate also suggest that demand for construction labor weakened in May. Despite these signs, contractors remain optimistic about growing their staffing levels, according to ABC’s Construction Confidence Index.”

ABC: Private Nonresidential Construction Spending Slides Again in May

Mon, 13 Jul 2026 16:17:28 GMT

National nonresidential construction spending slid 1.5% in May, according to an Associated Builders and Contractors analysis of U.S. Census Bureau data. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.267 trillion.

Spending was up on a monthly basis in 11 of the 16 nonresidential subcategories. Private nonresidential spending was down 0.3%, while public nonresidential construction spending was up 0.4% in May.

“Private nonresidential construction spending shrank for the seventh consecutive month in May and is now down 6.6% on a year-over-year basis,” said ABC Chief Economist Anirban Basu. “This weakness is largely due to the ongoing decline in manufacturing-related construction spending as CHIPS Act-supported projects wind down, yet overall there are few sources of momentum in the segment.

“Yes, the amusement and recreation category continues to grow at a healthy pace, and the religious category has rebounded meaningfully over the past year,” said Basu. “But those modestly sized segments are far too small to carry the broader nonresidential market, especially given the weakness in larger categories. For instance, warehouse construction spending, which appeared to stabilize at the start of 2026, has now fallen for three consecutive months and is down 8.5% year over year, while the general office category remains in a state of freefall, down 11.9% since May 2025.

“For now, momentum remains largely concentrated in the data center segment,” said Basu. “As seen in ABC’s most recent Construction Backlog Indicator release, those fortunate enough to have data center work have significantly longer backlogs (11.6 months) than those that do not (8.6 months).”

ABC: Nonresidential Construction Retains Hiring Momentum in June Jobs Report

Mon, 06 Jul 2026 15:00:11 GMT

The construction industry added 11,000 jobs on net in June, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics data. On a year-over-year basis, industry employment has expanded by 64,000 jobs, an increase of 0.8%.

Nonresidential construction employment increased by 19,900 positions, with gains in all three subcategories. Nonresidential specialty traded added the most jobs, increasing by 14,100 net positions. Nonresidential building and heavy and civil engineering added 3,200 and 2,600 jobs, respectively, in June.

The construction unemployment rate was 4.7% in June. Unemployment across all industries dropped to 4.2% and is 0.1 percentage point higher than one year ago.

“Today’s jobs report was full of positive signs for the nonresidential side of the industry,” said ABC Chief Economist Anirban Basu. “The nonresidential segment continued to add jobs in June and has grown several times faster than the economywide average over the past 12 months.

“At the same time, the supply of labor appears adequate to fuel ongoing hiring,” said Basu. “The industry’s unemployment rate rose to 4.7%, higher than in any June since 2021, and that slack took some pressure off of wage escalation. Average hourly earnings for nonmanagerial construction workers rose at the slowest pace since last September. With ABC contractors signaling ongoing hiring intentions, according to ABC’s Construction Confidence Index, it appears likely that the industry will continue to expand its employment base over the coming months.”

GSA Issues New Guidance on Implementation of Costly and Anti-Competitive PLA Mandate

Mon, 29 Jun 2026 14:01:32 GMT

On June 18, the General Services Administration published significant new procedures for procurements subject to the project labor agreement mandate on large-scale federal construction projects valued at over $35 million through a new Acquisition Letter and PLA Playbook.

The documents explain that moving forward, the agency is utilizing a ‘paired-proposal’ procedure where contractors are still required to submit a bid that includes a PLA, but can optionally also submit a non-PLA bid.

The guidance states that GSA will then compare the PLA and non-PLA prices. However, the PLA bid price is evaluated as if it is 10% lower than its true price (up to $15 million) to reflect the premium that GSA deems reasonable for a PLA.

If the non-PLA price is lower even after the PLA bid is reduced in price, GSA will consider that contractor's non-PLA bid. If the non-PLA bid wins the award, GSA will obtain a PLA mandate exception for that project.

As of now, this guidance appears to only apply to GSA contracts, representing a relatively small percentage of large-scale federal construction.

ABC is still analyzing the impacts of this change. Despite the indication of potential exceptions, the guidance still appears to favor the use of PLA mandates on GSA contracts.

ABC continues to strongly oppose the illegal, discriminatory and inflationary federal PLA mandate through ongoing litigation and advocacy.