06/05/2026
The commercial construction industry is getting squeezed from every direction right now. Here's what's actually happening:
📈 Project costs are up 6.2% year-to-date, and escalation is running 4–6% on baseline estimates.
🔩 Steel, aluminum, and copper tariffs (up to 50%) have sent material prices through the roof. Over 70% of contractors are pre-buying supplies months out just to avoid getting caught mid-project.
👷 The industry is still short ~500,000 workers. Unemployment in construction is near an all-time low, which sounds great...until you realize it means wage premiums, less-skilled fill-ins, and declining productivity.
💡 The bright spot? Data centers and manufacturing are still building at record levels, absorbing cost increases because demand is that strong.
What does this mean for commercial GCs and developers? Margins are thinner. Schedules are tighter. The subs who show up on time, stay on budget, and don't create problems are worth more than ever.
We're not here to complain about the market. We're here to be the easiest call you make.
