Overall industry conditions & outlook
Total construction spending fell from a seasonally adjusted high of $2.191 trillion in December 2024 to $2.149 trillion in May 2025 but rebounded later in 2025, according to U.S. Census Bureau data. (See Figure 1.)
The value of construction put in place across the U.S. through the first 10 months of 2025 was $1.825 trillion, down from $1.851 trillion during the same period in 2024. This includes:
- $779 billion for residential construction, down from $798 billion in 2024.
- $1.046 trillion for nonresidential construction, down from $1.054 trillion in 2024.
Total construction starts are forecast to fall 0.4% in 2026, according to the Dodge Construction Network. (See Figure 2.)
The insurance market is mostly favorable for construction and design industry businesses. Increased participation by new insurers and broadened offerings from existing insurers are fueling competition for construction risks.
Results from Jan. 1, 2026, treaty renewals suggest that the casualty market for contractors may be softening. Still, construction industry buyers face challenges in a few jurisdictions and lines of business, such as commercial automobile and excess casualty.
Proactive risk management within portfolios is recommended. For auto fleets and driving programs, that may mean telematics. Quality assurance and quality control are important risk management steps in eliminating design defects. Subcontractor management is key for general contractors to maintain quality of building components.
Safety has always been important in project risks and profitability, but technology has helped the industry become more proactive. For example, wearables, site sensors, and analysis of body mechanics are helpful tools in preventing injuries. Top drivers of construction claims continue to be generally led by:
Falls from a height.
Slips, trips, and falls.
Strikes by or against objects.
Water damage.
