US Construction Industry Report 2025: Following a Contraction of 2.7% in 2025, Output is Projected to Grow at an AAGR of 1.9% During 2026-2029, Supported by Infrastructure and Nuclear Facilities
Dublin, Feb. 23, 2026 (GLOBE NEWSWIRE) -- The "The US Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)" report has been added to ResearchAndMarkets.com's offering.
The US construction industry is estimated to have contracted by 2.7% in real terms in 2025, reflecting headwinds from the fallout of protectionist trade policies, ongoing weakness in the residential market, and continued declines across the broader commercial and industrial sectors.
Heightened uncertainty around trade policy has pushed up input costs, dampened contractor sentiment, and disrupted supply chains, contributing to project delays. In addition, President Trump's immigration strategy, which has been centered on deportations and tighter visa policies has exacerbated existing labor shortages across the sector.
Preliminary estimates from the US Bureau of Labor Statistics (BLS) show average employment fell by 0.7% year-on-year (YoY) in manufacturing during the first eleven months of 2025, while mining employment declined by 1.4% over the same period. Meanwhile, tariffs imposed on multiple countries have increased construction material prices and slowed imports, widening the trade deficit.
Over the remainder of the forecast period, however, the construction industry is expected to recover at an annual growth of 1.9% during 2026-29, supported by investments in the infrastructure and nuclear facilities. The government targets to increase the American nuclear energy capacity from 100GW in 2024 to 400GW by 2050. In line with this target, in October 2025, the government entered a partnership with several companies, including the domestic nuclear services provider Westinghouse Electric Company.
This partnership will aim to construct new nuclear reactors across the country with a combined value of $80 billion. Moving ahead, in December 2025, the local energy and utilities service provider, Santee Cooper, reported that it will conduct a feasibility study for the construction of two nuclear units costing $2.7 billion in the country. The feasibility study on this is expected to be completed by June 2026. Also, in December 2025, the government passed a law to streamline environmental reviews and accelerate permitting for large energy infrastructure projects, data centers, and factories.
Report Scope
Reasons to Buy
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Construction in Key US States
5.1 California
5.2 Florida
5.3 Texas
5.4 New York
5.5 Pennsylvania
5.6 Georgia
5.7 Illinois
5.8 Ohio
5.9 Washington
5.1 North Carolina
6 Key Industry Participants
6.1 Contractors
6.2 Consultants
7 Construction Market Data
8 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/ie5fx8
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