Mid-Year Construction Economics Report

Contractors Brace for Policy-Driven Disruption

Contractors are entering the second half of 2025 with growing uncertainty. Midyear reports from Skanska, DPR, and Gilbane reveal that policy volatility—tariffs, credit tightening, and stricter immigration enforcement—is now the top threat to construction planning. Supply chain shifts, rising material costs, and a shrinking skilled labor pool are adding pressure. While infrastructure and water sectors remain steady, Gilbane projects only 1% total construction growth in 2025—down from 6.5% last year. With residential markets weakening and federal policy implementation fragmented, the path forward favors firms that can adapt early and plan aggressively.

Continue reading this article.

Top 23 Construction Podcasts to Level Up in 2025

With industry demands accelerating and attention spans shrinking, construction leaders are turning to podcasts for fast, actionable insight. From leadership and project management to AI, labor, and infrastructure investment, 2025’s best construction podcasts offer smart listening on the go. Standouts include Construction Genius, The ConTech Crew, and Infrastructure Investor, along with specialized shows like Design-Build Delivers and Labor Lounge. Whether you're an owner, PM, or emerging leader, these shows provide a competitive edge without breaking your schedule.

Continue reading this article.

Construction Recovery Gains Momentum—But in Unexpected Places

After a slow start to 2025, construction spending is rebounding, led by megaprojects and a surprise shift in regional growth. May alone saw $77 billion in nonresidential starts—driven largely by Taiwan Semiconductor’s Phoenix expansion, which accounted for one-third of total spending. Meanwhile, traditional leaders like California, Texas, and Florida are slowing, while Northeast states surge ahead. Massachusetts (+48%), Pennsylvania (+43%), and Maine (+25%) are among the top-performing states year-to-date, signaling new opportunity zones in an industry still redefining its post-pandemic geography.

Continue reading this article.

Private Construction Spending Slips for Third Straight Month

Nonresidential construction spending dropped 0.2% in July—marking the third consecutive monthly decline, according to ABC’s latest analysis. Private-sector activity fell by 0.5%, with only power and religious segments showing growth. Material costs are climbing rapidly due to new tariffs, and nearly 1 in 4 contractors reported project delays or cancellations tied to those cost spikes. With labor shortages reemerging and economic uncertainty high, industry leaders are bracing for a challenging second half of 2025.

Continue reading this article.

Conclusion

The message from mid-year 2025 is clear: uncertainty is the new operating environment—and it’s not going away. Private construction spending is sliding, workforce gaps are deepening, tariffs are reshaping pricing, and enforcement crackdowns are hitting job sites hard. Even with megaprojects fueling record months, the margin for error is shrinking. The industry is being asked to do more—with less certainty, fewer workers, and higher input costs. And yet, amid this volatility, opportunity is reemerging in new markets: New England and the Mid-Atlantic are accelerating, education and institutional sectors are rebounding, and public infrastructure investment remains solid. This isn’t a moment for business-as-usual. This is a test of leadership. The firms leading now aren’t reacting to symptoms—they’re solving for root causes. They’re forecasting labor with real-world data, not outdated models. They’re de-risking procurement before price shocks hit. They’re designing scopes around what can be built—not just what looks good on paper. At Paragon Construction Consulting, this is the edge we deliver: operational foresight, strategic execution, and predictable outcomes when others fall behind. Because those who act with discipline today are the ones who will still be building tomorrow. Let’s move forward—with precision.

Jeff Hall
President & CEO

Online

Get in Touch

Commodity

12 Month % Change

1 Month % Change

Softwood Lumber

+7.7

-1.9

Hardwood Lumber

+5.4

+0.6

General Millworks

+2.3

+0.8

Soft Plywood Products

-0.9

-2.0

Hot Rolled Steel

+2.4

+4.7

Copper Wire & Cable

+12.2

+4.9

Power Wire & Cable

N/A

N/A

Builder's Hardware

+10.0

+2.5

Plumbing Fixtures

+5.3

+0.7

Furnaces and Heaters

+8.0

+0.8

Sheet Metal Products

+4.5

0.0

Electrical Lighting Fixtures

N/A

N/A

Nails

+3.4

+0.9

Major Appliances

+2.6

+0.6

Ready-Mix Concrete

+0.5

-0.5

Asphalt Roofing & Siding

+1.3

-0.7

Gypsum Products

+0.8

0.0

Insulation

-0.6

-1.0

Labor Shortages and Immigration Enforcement Drive Construction Delays

A new AGC and NCCER survey shows 92% of construction firms are struggling to hire qualified workers, with 45% reporting labor shortages as the direct cause of project delays, cancellations, or redesigns. Immigration enforcement has added to the disruption, impacting nearly 1 in 3 firms nationwide. Only 10% of contractors are using temporary visa programs, while most are relying on pay hikes, training investments, and school partnerships to close the gap. With tariff-related delays also climbing, the labor crisis is now the top threat to schedule certainty in the second half of 2025.

Continue reading this article.

20-City Average Cost Indexes, Wages, Prices

ENR publishes both a Construction Cost Index and Building Cost index that reports the average national price by surveying 20 major cities across the United States. These figures report the national average change of cost over the last month.

CONCRETE BLOCK

-1.7%

READY MIX CONCRETE

+0.3%

ASPHALT PAVING

-2.0%

PORTLAND CEMENT

+0.3%

ALUMINIUM SHEET

-1.0%

REINFORCING BARS

-0.1%

WIDE FLANGE

+0.3%

STAINLESS-STEEL SHEET

-1.4%

CORRUGATED-STEEL PIPE

-0.2%

DUCTILE-IRON PIPE

-0.1%

PVC WATER PIPE

+1.5%

REINFORCED CONCRETE PIPE

+0.9%

GYPSUM WALLBOARD

-0.6%

PARTICLE BOARD

+0.0%

PLYWOOD

-0.9%

LUMBER

+2.5%

CTA Image

Want the latest information on construction materials?

Subscribe to the Paragon Post

CTA Image

Want the latest information on construction materials?

Subscribe to the Paragon Post

Want the latest information on construction materials?

Subscribe to the Paragon Post

Contractors Brace for Policy-Driven Disruption

Contractors are entering the second half of 2025 with growing uncertainty. Midyear reports from Skanska, DPR, and Gilbane reveal that policy volatility—tariffs, credit tightening, and stricter immigration enforcement—is now the top threat to construction planning. Supply chain shifts, rising material costs, and a shrinking skilled labor pool are adding pressure. While infrastructure and water sectors remain steady, Gilbane projects only 1% total construction growth in 2025—down from 6.5% last year. With residential markets weakening and federal policy implementation fragmented, the path forward favors firms that can adapt early and plan aggressively.

Continue reading this article.

Top 23 Construction Podcasts to Level Up in 2025

With industry demands accelerating and attention spans shrinking, construction leaders are turning to podcasts for fast, actionable insight. From leadership and project management to AI, labor, and infrastructure investment, 2025’s best construction podcasts offer smart listening on the go. Standouts include Construction Genius, The ConTech Crew, and Infrastructure Investor, along with specialized shows like Design-Build Delivers and Labor Lounge. Whether you're an owner, PM, or emerging leader, these shows provide a competitive edge without breaking your schedule.

Continue reading this article.

Construction Recovery Gains Momentum—But in Unexpected Places

After a slow start to 2025, construction spending is rebounding, led by megaprojects and a surprise shift in regional growth. May alone saw $77 billion in nonresidential starts—driven largely by Taiwan Semiconductor’s Phoenix expansion, which accounted for one-third of total spending. Meanwhile, traditional leaders like California, Texas, and Florida are slowing, while Northeast states surge ahead. Massachusetts (+48%), Pennsylvania (+43%), and Maine (+25%) are among the top-performing states year-to-date, signaling new opportunity zones in an industry still redefining its post-pandemic geography.

Continue reading this article.

Private Construction Spending Slips for Third Straight Month

Nonresidential construction spending dropped 0.2% in July—marking the third consecutive monthly decline, according to ABC’s latest analysis. Private-sector activity fell by 0.5%, with only power and religious segments showing growth. Material costs are climbing rapidly due to new tariffs, and nearly 1 in 4 contractors reported project delays or cancellations tied to those cost spikes. With labor shortages reemerging and economic uncertainty high, industry leaders are bracing for a challenging second half of 2025.

Continue reading this article.

Conclusion

The message from mid-year 2025 is clear: uncertainty is the new operating environment—and it’s not going away. Private construction spending is sliding, workforce gaps are deepening, tariffs are reshaping pricing, and enforcement crackdowns are hitting job sites hard. Even with megaprojects fueling record months, the margin for error is shrinking. The industry is being asked to do more—with less certainty, fewer workers, and higher input costs. And yet, amid this volatility, opportunity is reemerging in new markets: New England and the Mid-Atlantic are accelerating, education and institutional sectors are rebounding, and public infrastructure investment remains solid. This isn’t a moment for business-as-usual. This is a test of leadership. The firms leading now aren’t reacting to symptoms—they’re solving for root causes. They’re forecasting labor with real-world data, not outdated models. They’re de-risking procurement before price shocks hit. They’re designing scopes around what can be built—not just what looks good on paper. At Paragon Construction Consulting, this is the edge we deliver: operational foresight, strategic execution, and predictable outcomes when others fall behind. Because those who act with discipline today are the ones who will still be building tomorrow. Let’s move forward—with precision.

Jeff Hall
President & CEO

Online

Online

Get in Touch

Get in Touch

Commodity

12 Month % Change

1 Month % Change

Softwood Lumber

+7.7

-1.9

Hardwood Lumber

+5.4

+0.6

General Millworks

+2.3

+0.8

Soft Plywood Products

-0.9

-2.0

Hot Rolled Steel

+2.4

+4.7

Copper Wire & Cable

+12.2

+4.9

Power Wire & Cable

N/A

N/A

Builder's Hardware

+10.0

+2.5

Plumbing Fixtures

+5.3

+0.7

Furnaces and Heaters

+8.0

+0.8

Sheet Metal Products

+4.5

0.0

Electrical Lighting Fixtures

N/A

N/A

Nails

+3.4

+0.9

Major Appliances

+2.6

+0.6

Ready-Mix Concrete

+0.5

-0.5

Asphalt Roofing & Siding

+1.3

-0.7

Gypsum Products

+0.8

0.0

Insulation

-0.6

-1.0

Labor Shortages and Immigration Enforcement Drive Construction Delays

A new AGC and NCCER survey shows 92% of construction firms are struggling to hire qualified workers, with 45% reporting labor shortages as the direct cause of project delays, cancellations, or redesigns. Immigration enforcement has added to the disruption, impacting nearly 1 in 3 firms nationwide. Only 10% of contractors are using temporary visa programs, while most are relying on pay hikes, training investments, and school partnerships to close the gap. With tariff-related delays also climbing, the labor crisis is now the top threat to schedule certainty in the second half of 2025.

Continue reading this article.

20-City Average Cost Indexes, Wages, Prices

ENR publishes both a Construction Cost Index and Building Cost index that reports the average national price by surveying 20 major cities across the United States. These figures report the national average change of cost over the last month.

CONCRETE BLOCK

-1.7%

READY MIX CONCRETE

+0.3%

ASPHALT PAVING

-2.0%

PORTLAND CEMENT

+0.3%

ALUMINIUM SHEET

-1.0%

REINFORCING BARS

-0.1%

WIDE FLANGE

+0.3%

STAINLESS-STEEL SHEET

-1.4%

CORRUGATED-STEEL PIPE

-0.2%

DUCTILE-IRON PIPE

-0.1%

PVC WATER PIPE

+1.5%

REINFORCED CONCRETE PIPE

+0.9%

GYPSUM WALLBOARD

-0.6%

PARTICLE BOARD

+0.0%

PLYWOOD

-0.9%

LUMBER

+2.5%

Sources

Paragon compiles the latest and most accurate information. It’s worth noting, some sources release data more or less frequently.

Mid-Year Construction Economics Report

Contractors Brace for Policy-Driven Disruption

Contractors are entering the second half of 2025 with growing uncertainty. Midyear reports from Skanska, DPR, and Gilbane reveal that policy volatility—tariffs, credit tightening, and stricter immigration enforcement—is now the top threat to construction planning. Supply chain shifts, rising material costs, and a shrinking skilled labor pool are adding pressure. While infrastructure and water sectors remain steady, Gilbane projects only 1% total construction growth in 2025—down from 6.5% last year. With residential markets weakening and federal policy implementation fragmented, the path forward favors firms that can adapt early and plan aggressively.

Top 23 Construction Podcasts to Level Up in 2025

With industry demands accelerating and attention spans shrinking, construction leaders are turning to podcasts for fast, actionable insight. From leadership and project management to AI, labor, and infrastructure investment, 2025’s best construction podcasts offer smart listening on the go. Standouts include Construction Genius, The ConTech Crew, and Infrastructure Investor, along with specialized shows like Design-Build Delivers and Labor Lounge. Whether you're an owner, PM, or emerging leader, these shows provide a competitive edge without breaking your schedule.

Construction Recovery Gains Momentum—But in Unexpected Places

After a slow start to 2025, construction spending is rebounding, led by megaprojects and a surprise shift in regional growth. May alone saw $77 billion in nonresidential starts—driven largely by Taiwan Semiconductor’s Phoenix expansion, which accounted for one-third of total spending. Meanwhile, traditional leaders like California, Texas, and Florida are slowing, while Northeast states surge ahead. Massachusetts (+48%), Pennsylvania (+43%), and Maine (+25%) are among the top-performing states year-to-date, signaling new opportunity zones in an industry still redefining its post-pandemic geography.

Private Construction Spending Slips for Third Straight Month

Nonresidential construction spending dropped 0.2% in July—marking the third consecutive monthly decline, according to ABC’s latest analysis. Private-sector activity fell by 0.5%, with only power and religious segments showing growth. Material costs are climbing rapidly due to new tariffs, and nearly 1 in 4 contractors reported project delays or cancellations tied to those cost spikes. With labor shortages reemerging and economic uncertainty high, industry leaders are bracing for a challenging second half of 2025.

Sources

Paragon compiles the latest and most accurate information. It’s worth noting, some sources release data more or less frequently.

Commodity

12 Month % Change

1 Month % Change

Softwood Lumber

+7.7

-1.9

Hardwood Lumber

+5.4

+0.6

General Millworks

+2.3

+0.8

Soft Plywood Products

-0.9

-2.0

Hot Rolled Steel

+2.4

+4.7

Copper Wire & Cable

+12.2

+4.9

Power Wire & Cable

N/A

N/A

Builder's Hardware

+10.0

+2.5

Plumbing Fixtures

+5.3

+0.7

Furnaces and Heaters

+8.0

+0.8

Sheet Metal Products

+4.5

0.0

Electrical Lighting Fixtures

N/A

N/A

Nails

+3.4

+0.9

Major Appliances

+2.6

+0.6

Ready-Mix Concrete

+0.5

-0.5

Asphalt Roofing & Siding

+1.3

-0.7

Gypsum Products

+0.8

0.0

Insulation

-0.6

-1.0

Labor Shortages and Immigration Enforcement Drive Construction Delays

A new AGC and NCCER survey shows 92% of construction firms are struggling to hire qualified workers, with 45% reporting labor shortages as the direct cause of project delays, cancellations, or redesigns. Immigration enforcement has added to the disruption, impacting nearly 1 in 3 firms nationwide. Only 10% of contractors are using temporary visa programs, while most are relying on pay hikes, training investments, and school partnerships to close the gap. With tariff-related delays also climbing, the labor crisis is now the top threat to schedule certainty in the second half of 2025.

Continue reading.

20-City Average Cost Indexes, Wages, Prices

ENR publishes both a Construction Cost Index and Building Cost index that reports the average national price by surveying 20 major cities across the United States. These figures report the national average change of cost over the last month.

CONCRETE BLOCK

-1.7%

READY MIX CONCRETE

+0.3%

ASPHALT PAVING

-2.0%

PORTLAND CEMENT

+0.3%

ALUMINIUM SHEET

-1.0%

REINFORCING BARS

-0.1%

WIDE FLANGE

+0.3%

STAINLESS-STEEL SHEET

-1.4%

CORRUGATED STEEL PIPE

-0.2%

DUCTILE-IRON PIPE

-0.1%

PVC WATER PIPE

+1.5%

REINFORCED CONCRETE PIPE

+0.9%

GYPSUM WALLBOARD

-0.6%

PARTICLE BOARD

+0.0%

PLYWOOD

-0.9%

LUMBER

+2.5%

Mid-Year Construction Economics Report

Conclusion

The message from mid-year 2025 is clear: uncertainty is the new operating environment—and it’s not going away. Private construction spending is sliding, workforce gaps are deepening, tariffs are reshaping pricing, and enforcement crackdowns are hitting job sites hard. Even with megaprojects fueling record months, the margin for error is shrinking. The industry is being asked to do more—with less certainty, fewer workers, and higher input costs. And yet, amid this volatility, opportunity is reemerging in new markets: New England and the Mid-Atlantic are accelerating, education and institutional sectors are rebounding, and public infrastructure investment remains solid. This isn’t a moment for business-as-usual. This is a test of leadership. The firms leading now aren’t reacting to symptoms—they’re solving for root causes. They’re forecasting labor with real-world data, not outdated models. They’re de-risking procurement before price shocks hit. They’re designing scopes around what can be built—not just what looks good on paper. At Paragon Construction Consulting, this is the edge we deliver: operational foresight, strategic execution, and predictable outcomes when others fall behind. Because those who act with discipline today are the ones who will still be building tomorrow. Let’s move forward—with precision.

Jeff Hall
President & CEO
Jeff Hall
President & CEO

Online

Get in Touch