Weekly Construction Market Intelligence Report - Nov

Construction Industry, November 2025

Executive summary

November closed with a clear signal: the construction industry is scaling into a new cycle defined by size and specialization. Turner Construction posted a 44 percent H1 revenue surge, Construction Partners Inc. delivered 54 percent full-year revenue growth with a record backlog, and data center construction has shifted from a niche to a generational opportunity. The sector is projected to grow from $287 billion in 2025 to roughly $1 trillion by 2035, prompting contractors to reorganize practice groups, elevate new leaders, and compete for expertise in mission critical delivery.

Headwinds remain real. Skilled labor shortages continue to constrain output and lift wages. Tariff uncertainty pressures steel, aluminum, and other core materials. Policy changes like OBBB’s extended bonus depreciation and the time-bound 179D window are accelerating investment while adding compliance work. The result is a market that is both bigger and harder, rewarding firms that can secure talent, industrialize delivery, and manage commercial risk with discipline.

Market highlights

Major project awards

• Harborview Medical Center Bond Program, Seattle WA, Mortenson and Perkins & Will, Design Build, $1.74B. A 10 story inpatient tower to relieve capacity at the WWAMI region’s only Level 1 trauma center, with phased completion through 2028 to 2030.
• AdventHealth Orlando Medical Tower, Orlando FL, Brasfield & Gorrie, $660M. A 14 story expansion adding 24 operating rooms and 440 beds as part of a $1B downtown campus investment, targeted for 2030.
• Texas water infrastructure, Ferrovial and Webber, $720M combined. A $426M Austin pump station at 105 foot depth with 260,000 GPM capacity, plus a $295M Fort Worth treatment plant expansion adding 35 MGD, delivering across 2028 to 2029.
• Ohio DOT construction season, statewide, $3.2B. A record program of 955 projects, including 38 major awards above $10M, signaling sustained transport modernization across the state.
• NFL stadiums, Turner Construction, Buffalo NY and Nashville TN. Multi billion, open air venues exceeding 60,000 seats that serve as regional economic anchors and design landmarks.

These awards underscore two durable themes. Institutional healthcare buildouts and revitalization of critical infrastructure, each supported by demographic growth, policy prioritization, and long cycle funding.

Corporate growth and consolidation

• Construction Partners Inc. Revenue reached about $2.812B in fiscal 2025, up 54 percent year over year. Net income reached roughly $101.8M, and adjusted EBITDA about $423.7M, up 92 percent. Backlog hit a record near $3.03B. Five acquisitions extended reach across Texas, Oklahoma, Tennessee, and Alabama. Management is guiding toward $1B plus adjusted EBITDA by 2030, implying roughly 18 percent CAGR and continued margin expansion through scale and integrated operations.
• Turner Construction. H1 2025 revenue totaled $13.4B, up 44 percent year over year. Backlog exceeded $39B, up 21 percent. Portfolio mix shows leadership in mission critical infrastructure, with $12.6B in data centers, alongside healthcare at $6.6B, education at $4.1B, and sports and entertainment at $3.5B. The Dornan acquisition deepens complex delivery capabilities in Europe and reinforces multinational reach.
• Gannett Fleming and TranSystems merger. A combined platform near $1.3B in engineering capability that enhances transportation design across bridges, highways, rail, and mass transit. The move reflects broader consolidation, particularly in specialized infrastructure verticals where scale and technical depth matter.
• Zachry Construction acquisition of Crescent Constructors. Adds more than 100 professionals and accelerates expansion into water and wastewater, including design build for treatment plants, lift stations, and conveyance. This positions the firm in one of the fastest growing infrastructure segments.

Strategic takeaway. The winners are pairing organic backlog growth with focused M&A, sharpening specialization and geographic density, and building balance across verticals with different economic cycles.

Industry trends to watch

• Data center construction’s breakout decade. The market’s trajectory toward roughly $1 trillion by 2035 continues to reshape contractor org charts and capital allocation. Turner’s $12.6B data center backlog, DPR’s sustained ranking in mission critical delivery, and Jacobs’ delivery record of more than 17 million square feet and over 3,600 MW underscore the scale. Firms are codifying leadership and playbooks for hyperscale delivery, with dedicated roles and practices to capture share. Expect continued competition for power rich sites, transmission upgrades, modularization partnerships, and highly specialized labor.
• Healthcare facility modernization. Nonresidential growth in 2025 and 2026 is anchored by health systems investing in capacity, resilience, and patient experience. Florida stands out with multiple $100M plus projects underway, while major hospital expansions nationwide point to sustained institutional demand. Contractors with healthcare controls, infection prevention expertise, and phasing proficiency will command premiums.

Labor, policy, and materials, tailwinds and turbulence

• Skilled labor shortage. The annual drag on residential construction is estimated above $10B, combining carrying costs and lost output. Non supervisory wages are up about 9 percent year over year as of mid 2025, outpacing inflation and compressing some fixed fee margins. Contractors are expanding apprenticeship and NextGen workforce programs, but capacity constraints will continue to challenge schedules, bid coverage, and productivity.
• OBBB tax reform, July 2025. Extends 100 percent bonus depreciation through 2030 and raises Section 179 limits, supporting cash flow for equipment intensive firms. The expanded 179D deduction with prevailing wage and apprenticeship bonuses creates a near term incentive for energy efficient projects, but the scheduled 179D sunset in mid 2026 creates a surge window and documentation burden. Firms with robust compliance systems will convert these incentives into real margin.
• Tariff uncertainty and cost inflation. With an effective tariff rate estimated in the low twenties percent, material intensive projects face elevated risk. Steel and aluminum pricing pressure, rerouted supply chains, and delivery delays are leading to repricing, value engineering, and selective deferrals. Expect owners to demand sharper escalation clauses and contractors to hedge with earlier buys, flexible alternates, and collaborative procurement.

Bottom line. Execution quality is being redefined by labor pipelines, commercial terms, and risk controls as much as by the work itself.

Executive moves and organizational design

City Electric Supply (CES) announced on November 24 that Co-Chief Executive Officer Andrew Dawes will retire on April 30, 2026, and that Vice President of Operations Blair Feidler will succeed him as co-CEO effective May 1, 2026.

Burns & McDonnell announced on November 17 that Joe Podrebarac will lead its Energy market, Ron Williams will serve as General Manager of its Water Group, and Chad Hotovec has been promoted to Vice President of International Operations. Source

Messer Construction Co. disclosed on November 13 that it has promoted 11 individuals into senior management, including Jason Adams (Knoxville), Alex Hunn (Louisville), Mike Robinson (Cincinnati), and others to roles such as Project Executive, Building Systems Executive and Senior General Superintendent. Source

Maul Foster & Alongi announced that Jessica Glenn has been promoted to Principal Environmental Scientist, according to a November 3 news post in the DJC Oregon “People” section. 

Signal. There were additional November leadership promotions across construction, engineering, and specialty trades, underscoring how firms continue to strengthen market-specific leadership as demand accelerates.

Companies to watch

1. Construction Partners Inc.

Relentless execution, disciplined M&A, and strong Sunbelt positioning make CPI a bellwether for heavy civil and materials. The 2030 EBITDA goal implies continued pricing power, vertical integration, and network effects in aggregates and asphalt.

2. Turner Construction

Category leadership across data centers, healthcare, education, and sports, combined with global capabilities, gives Turner a diversified offense. Watch for further investment in industrialized construction and supply partnerships that tame volatility.

3. PCL Construction

Expanding data center capabilities, multi region reach, and industry recognition point to durable growth in mission critical sectors. Expect more standardization and playbooks aimed at speed to power and MEP risk management.

4. Sundt Construction

Formal data center practice, strong Southwest footprint, and a promotion forward culture position the firm to scale in high margin niches while maintaining operational discipline.

What this means for owners and contractors

• Secure labor early. Lock in craft and supervisory talent before award through flexible starts, training guarantees, and retention incentives, especially for MEP, low-voltage, and controls.
• Get commercial terms right. Align escalation, allowances, and procurement milestones with long-lead equipment and client decision rights.
• Industrialize delivery. Prefabrication, modular MEP skids, standardized design kits, and digital QA/QC reduce rework and protect schedules.
• Leverage the policy window. Maximize OBBB and 179D benefits while the window remains open by strengthening prevailing wage and apprenticeship tracking.
• Build resilient supply chains. Dual-source critical materials, prequalify alternates, and stage early buys around power equipment, structural steel, switchgear, air handlers, and specialty medical systems.

Outlook, entering 2026 with momentum and caution

The setup for 2026 blends structural demand with policy and cost volatility. Data centers will continue to lead in scale and speed. Healthcare should remain resilient. Water and wastewater will expand. Transportation remains well funded with elevated bid activity. Profitability will hinge on disciplined preconstruction, early procurement, and talent retention. 

Firms that win will pair specialization with codified delivery models, agile supply strategies, and leadership aligned to the fastest-growing verticals. In a market this large and this complex, operational excellence becomes the moat.

Sources

• Turner H1 2025 records, backlog and revenue, official press release
• Coverage corroborating Turner backlog and mix
• Jacobs, data center delivery track record, 17M plus SF and 3,600 MW, industry profile
• Data center market projection toward $1T by 2035, DC Market Insights via PR Newswire
• Construction Partners Inc. preliminary FY2025 results and FY2026 outlook, PR Newswire
• CPI quarterly and IR news archive for 2025 updates
• Additional CPI quarterly results
• Industry reporting on Jacobs’ expanding data center pipeline