Surging information heart exercise helped jumpstart nonresidential development planning final month, however contractors nonetheless face quite a few hurdles within the 12 months forward.
Whereas planning picked up as a result of momentum round information facilities, general backlog dropped to its lowest degree in practically two years. The decline underscores the continued challenges tied to elevated rates of interest and tighter financing situations, regardless of contractor confidence in a pickup later this 12 months.
Development enter costs remained secure to shut out 2024, although price pressures are mounting. President Donald Trump introduced this week new tariffs on metal and aluminum imports, including to considerations over rising materials prices. Further commerce restrictions on Canadian and Mexican merchandise have been postponed earlier this month, however development economists warn across-the-board tariffs would put even additional pressure on contractor pricing methods within the months forward.
In the meantime, development groundbreakings dipped in December as infrastructure exercise slowed. Spending additionally ticked down, with declines throughout a number of public-sector classes.
Right here, Development Dive rounds up the most recent key business information.
