October 7, Anirban Basu, chief economist, Associated Builders and Contractors, presented his third-quarter construction update in which he noted some changes: the Fed’s raising of interest rates and the boost of Midwest reindustrialization which was unforeseen.
“Third quarter earnings are expected to be 25% greater than the third quarter of last year, and last year was fabulous,” Basu said.
Data center and power projects continue to support construction activity, while rising costs and uneven demand complicate the outlook for contractors. Basu, described growth as increasingly concentrated in artificial intelligence investment, data center construction, corporate profits, and stock market gains.
Construction material prices increased 55.6% between February 2020 and August 2026, with steel mill products up 103.4% and nonferrous wire and cable up 97.1%. Tariffs remain a concern, while the Iran conflict adds pressure to energy costs and inflation, complicating the interest-rate outlook. For metal roofing contractors, these conditions reinforce the importance of reviewing material quotes, project schedules, and cash-flow needs.
ABC’s construction backlog reached 8.5 months in August, supported by data center work. Contractor confidence in sales and profit margins improved, while staffing expectations softened, underscoring the mixed outlook across construction markets.
