Business Issues

By Mike Larson

To give readers a feel for what 2026 might look like, Crane Hot Line asked experts from different sectors of the industry to talk about trends they expect in the coming year.

Those experts are Macrina Wilkins of the Associated General Contractors of America( AGC), Brian Raff, vice president of government affairs and sustainability for the American Institute of Steel Construction( AISC), Michael T. Walsh, president and CEO of consulting engineer Dearborn Companies, Harry Fry, Jr., president of finance and leasing experts Harry Fry & Associates and a representative from the Association of Equipment Manufacturers( AEM).

Crane Hot Line thanks them all for sharing their insights.

Equipment Manufacturing

AEM is the major trade association supporting U. S. manufacturers of construction and agricultural equipment. Here’ s what its representative told us: After a turbulent 2025, U. S. construction is entering 2026 with cautious optimism.

While total construction starts are projected to dip by 3.2 %, the story behind the headline is more nuanced and encouraging.

Residential construction, which fell 7.7 % last year, is showing renewed momentum.

Forecasts call for a 5.5 % rebound driven by multifamily investment and expanded federal support for affordable housing.

Challenges remain. Mortgage rates are still elevated, and the nation’ s housing deficit, estimated at 4.7 million units, continues to pressure affordability. Single-family starts are expected to rise 8.1 %, with multifamily starts edging up 0.6 %.

Nonresidential construction presents a mixed picture.

After a strong 2025 fueled by megaprojects, the sector is expected to contract 11.5 % in 2026.

Manufacturing construction, which surged 38.1 % last year, is forecast to fall more than 40 % as major semiconductor and artificial intelligence( AI)-related facilities reach completion.

Data centers, however, remain a bright spot as technology companies continue to invest heavily in AI-driven infrastructure.

Civil engineering work is projected to remain stable, with growth of 0.1 %.

Federal and state investments are keeping activity strong in transportation, especially in airports and bridges, which are expected to grow 14.7 % and 4.8 %, respectively.

Major undertakings such as the $ 11 billion SR400 Express Lane expansion and the $ 50 billion high-speed rail initiative highlight the sector’ s continued focus on mobility and congestion relief.

Energy and utility construction is also gaining traction, projected to grow 3.4 %.

While renewable energy faces some policy-related headwinds, investment in nuclear and traditional energy sources is accelerating.

The U. S. aims to quadruple its nuclear capacity to 400 GW by 2050, with Westinghouse planning to deliver 10 new reactors by 2030.

The ConstructConnect Project Stress Index( PSI) provides additional insight into preconstruction activity.

As of August 2025, the PSI measured 104.6, down 5.9 % month-over-month, suggesting easing stress in the pipeline.

Bid delays and paused projects declined, and abandonment rates returned to more typical levels after a mid-year spike.

While private-sector indicators are

The ConExpo-Con / Agg show, produced by AEM and held every third year, is a barometer for what’ s coming in the construction-equipment industry. The next ConExpo will be held March 3-7, 2026.

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December 2025 • www. cranehotline. com