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Overview of FMI Corporation's 2026 Report

On January 29, 2026, FMI Corporation, renowned for its consulting and investment banking services in the built environment, revealed its 2026 North American Engineering and Construction Industry Overview. This detailed report forecasts various construction and engineering segments across the U.S. and Canada. The findings aim to provide insights into market trends that could shape the industry's future over the next year.

Key Insights into Market Trends

FMI anticipates that construction spending for 2026 will see a slight increase of 1% compared to 2025. This projection indicates a landscape where growth is focused rather than widespread, requiring strategic decision-making by industry leaders. Chris Daum, the President and CEO of FMI, noted, “Leaders are being forced to make sharper choices about where to compete and how much risk to take on.” This sentiment underscores the need for companies to align their strategies with market realities, especially as performance varies significantly across different sectors.

The report's critical highlights reveal that total construction activity in the U.S. is projected to end 2026 with a slight decline of 1% relative to 2025. However, certain segments such as sewage and waste disposal, water supply, and both commercial and adaptive reuse projects are identified as outperformers. Notably, structures associated with public and infrastructure-related work are expected to remain stable, providing the foundation for future growth amidst emerging challenges in private categories.

Growth Drivers and Sector Performance

Several factors are contributing to the evolving construction landscape:

• - Nonbuilding Structures: Expected to experience a 4% increase, mainly driven by projects in power, water, and the environment, all backed by existing financial commitments.
• - Data Centers: This sector stands out as the growth leader within nonresidential construction, projected to soar by 35% from 2025 levels. This growth is indicative of the heightened demand for data handling and storage as digital infrastructures become more pervasive.
• - Adaptive Reuse: Projects involving the repurposing of existing structures into facilities like cultural and religious buildings play a significant role in driving growth.

These trends illustrate competing demands within the industry, divided among public needs and the challenges faced by private enterprises. The key takeaway emphasizes a nuanced understanding of the market and the importance of aligning firm capabilities with growth opportunities that demonstrate resilience.

Conclusion

FMI's 2026 overview serves as a vital resource for industry stakeholders eager to navigate the complex dynamics of the engineering and construction sectors. As the report offers in-depth analyses and projections, companies are encouraged to utilize these insights for strategic planning. To delve deeper into the comprehensive findings, readers can download the full report from FMI’s official website. Understanding these market conditions will be essential for organizations looking to thrive in an evolving economic landscape.