The Federal Reserve’s recent 25 basis point rate cut, following a similar reduction in September, is bolstering confidence in the construction sector. Developers, previously hesitant, are now preparing for potential project initiations as borrowing conditions are expected to ease further in 2026.

The Project Stress Index from ConstructConnect indicates a decline in construction project stress for the third consecutive month, with a 0.6% drop from August to September. Despite improvements in bid date delays and abandonments, public sector projects face challenges due to federal funding cuts, particularly in education and municipal construction. Private construction shows resilience, with significant reductions in abandonments and on-hold activities. However, public project abandonments rose 16.7% year over year. The industry faces ongoing challenges from tariffs and labor shortages, impacting project viability.

The construction backlog remained stable at 8.5 months in September, driven by public works and digital infrastructure, according to an ABC survey. While private projects have lost momentum, infrastructure and data centres have bolstered contractor pipelines. Despite a federal government shutdown potentially affecting federally funded projects, infrastructure backlog remains elevated. Data centres continue to be a significant source of private nonresidential construction, with contractors in this sector reporting a 12-month backlog. Contractor confidence shows mixed signals, with improved profit margins but declining sales expectations.

The Eurozone construction sector experienced a worsening downturn in September, with the HCOB Eurozone Construction PMI falling to 46.0. France saw the steepest decline, while Germany and Italy also reported reduced activity. All sub-sectors, particularly housing, faced declines. New orders dropped sharply, especially in France, though Italy saw a slight rise. Business sentiment remains low due to weak demand and rising costs. In the UK, the construction downturn continued but at a slower pace, with civil engineering as the weakest sector. Firms remain cautious amid economic uncertainty.

The UAE’s construction sector is set for a 4.2% CAGR through 2029, with a project pipeline valued at US$772 billion, according to Turner & Townsend. The UAE surpassed Saudi Arabia in contract awards in early 2025, with projects totalling nearly US$875 billion. Key growth areas include real estate, tourism, and infrastructure, with transport infrastructure expanding rapidly. Challenges include rising material costs and labor shortages. Sustainability is gaining traction, with increased adoption of modern construction methods. The market is evolving with international participation, enhancing standards and competition.

OpenSpace, a leader in construction reality capture, has acquired Disperse, a progress tracking startup, to bolster its spatial AI capabilities. This acquisition follows their successful partnership with OpenSpace Progress Tracking, which uses AI and visual scans for project assessment. The integration enhances contractors’ project insights, enabling accurate data-driven decisions. OpenSpace’s 360-degree visual capture and analytics ecosystem aids in billing validation, risk identification, and coordination, marking a significant step in construction tech M&A activity.

As mass timber projects surge, ironworkers are poised to meet demand due to their expertise in structural steel. Their skills in hoisting and placement translate well to mass timber, despite its delicate nature. Ironworkers are enhancing their capabilities through training with mass timber mockups. Collaborative crews, blending ironworkers with other trades, have proven effective, as seen in projects like Brookhaven City Centre.

Saint-Gobain has inaugurated a net zero gypsum wallboard plant in Sainte-Catherine, Canada, powered entirely by hydroelectricity. This facility is North America’s first zero-carbon wallboard plant and the world’s largest fully electrified one. The plant’s modernisation has increased production capacity by 40% while reducing energy use by 30% and CO₂ emissions by 44,000t annually.

Heidelberg Materials will supply its EvoBuild 3D printing concrete for KrausGruppe’s DreiHaus project in Heidelberg, Germany. The project includes three tower blocks, with the third utilising EvoZero carbon-captured cement, marking its first use in Germany. Produced at Heidelberg’s net-zero Brevik plant in Norway, EvoZero exemplifies sustainable innovation in construction. PERI 3D Construction and Korte-Hoffmann Gebäudedruck will execute the 3D printing, showcasing advanced building techniques.

Canadian infrastructure leader WSP has proposed a multibillion-dollar acquisition of Dallas-based Jacobs, primarily through stock. While WSP’s aggressive M&A history supports the credibility of this bid, analyst Andrew Wittmann cautions about integration risks, given Jacobs’ recent restructuring. Despite potential synergies in water infrastructure and life sciences, the timing appears challenging. WSP’s past interest in U.S. firms like AECOM highlights its strategic ambitions, though the feasibility of this merger remains uncertain.

Caterpillar reported record Q3 sales of $17.6 billion, driven by robust demand for power generators amid data center expansion, despite tariff challenges. The energy and transportation segment led with a 17% sales increase, while overall operating profit dipped 3% to $3.1 billion. The company raised its full-year guidance, anticipating stronger Q4 sales. Tariffs are expected to impact profits, but Caterpillar remains confident in managing these challenges through strategic measures.

Molins reported a net profit of €141 million for the first nine months of 2025, an 8% decline due to currency depreciation in Mexico and Argentina. On a like-for-like basis, net profit increased by 3%. Revenues reached €1 billion, down 2% year-on-year but up 7% at constant exchange rates. EBITDA was €263 million, a 4% decrease, yet up 6% at constant currencies. Molins achieved a 2030 Sustainability Roadmap goal by reducing its clinker factor below 67%.

JCB is investing £100 million in its UK headquarters, including a £60 million automated powder paint plant in Rocester, Staffordshire. The investment will modernize the shop floor with advanced machinery, reinforcing JCB’s industry leadership. Chairman Anthony Bamford emphasized the strategic focus on UK operations, despite global expansion.

Dalmia Bharat reported a nearly five-fold increase in consolidated net profit for Q2 FY2026, reaching $27.1 million, up from $5.6 million the previous year. Revenue rose by 10.7% to $388.3 million. The company commenced trial production at its 3.6Mt/yr Umrangso clinker line in September 2025, with commercial production set for early 2026. This expansion will boost Dalmia Bharat’s cement capacity from 49.5Mt/yr to 53.1Mt/yr, enhancing its market position.