Hospitality work is slow and multifamily has leveled off, but industrial remains active for now and data centers remain red hot. Advanced manufacturing is growing, and health care, infrastructure, higher education and life sciences sectors are steady. Niche adaptive reuse projects are also more prevalent.

Cost escalation is generally easing, but pricing is not declining. “Much of the AEC community now appears to be using more discernment on which projects to pursue,” he says. “There is now less interest to apply resources to projects that don’t have a defined start date or funding committed. We see trade partners and even vendors inquiring about a project’s financing arrangements prior to engaging in preconstruction or estimating activities.” 

At the same time, “It seems general contractors and trades are busier than most owners realize,” Weeks says. “The AEC community can operate with a higher level of portfolio diversity.”