U.S. Construction Industry Report 2025
The U.S. construction industry is expected to face a 2.7% decline in 2025, as commercial, industrial and residential sectors weaken due to rising input costs, strained supply chains and uncertainty driven by the President’s global trade policy. Tariffs that were once absorbed or offset have now escalated into broader economic disruptions, slowing project timelines and reducing builder confidence across the market.
However, the outlook improves from 2026–2029, with projected annual growth of 1.9%. This rebound will be driven by significant investments in AI-related infrastructure—particularly in data centers, energy systems and transmission lines—as well as expansions in transportation and manufacturing. Apple’s $600 billion American Manufacturing Program (AMP) is expected to be a major catalyst, strengthening construction demand and supporting long-term sector growth.
According to GlobeNewswire, “Over the remainder of the forecast period, the construction industry is expected to record an annual growth of 1.9% during 2026-29, supported by investments in the development of AI infrastructure.”
