Surging data center activity helped jumpstart nonresidential construction planning last month, but contractors still face a number of hurdles in the year ahead.
While planning picked up due to the momentum around data centers, overall backlog dropped to its lowest level in nearly two years. The decline underscores the ongoing challenges tied to elevated interest rates and tighter financing conditions, despite contractor confidence in a pickup later this year.
Construction input prices remained stable to close out 2024, though cost pressures are mounting. President Donald Trump announced this week new tariffs on steel and aluminum imports, adding to concerns over rising material costs. Additional trade restrictions on Canadian and Mexican products were postponed earlier this month, but construction economists warn across-the-board tariffs would put even further strain on contractor pricing strategies in the months ahead.
Meanwhile, construction groundbreakings dipped in December as infrastructure activity slowed. Spending also ticked down, with declines across several public-sector categories.
Here, Construction Dive rounds up the latest key industry data.