The report below gives a good overview of the Summer 2026 M&A activity in the Engineering and Construction Industry Sector. The global engineering and construction industry continued to be supported by infrastructure investment and AI driven data center development during the second quarter of 2026. US construction spending increased to a seasonally adjusted annual rate of approximately $2.2 trillion in both April and May, although spending trends varied across segments. Private non-residential construction, excluding data centers, remained under pressure, with spending nearly 8% below its December 2023 peak. Manufacturing construction declined 18% year-over-year in April as reshoring-related factory investment moderated. Data centers remained the largest commercial construction segment, with annualized spending of approximately $47-$51 billion. Residential construction regained momentum in June after housing starts moderated by 2.8% in April and 15.4% in May. Total housing starts rebounded 19.0% month-over-month to a seasonally adjusted annual rate of 1.43 million units, 3.5% above the prior year. Highway construction spending remained resilient, reaching an annualized $149.6 billion in April. Tariffs on steel, aluminium, and copper, effective June 8, increased construction material costs by an estimated 6% compared to 2024 levels. The tariffs added as much as $17,500 to the cost of a new home. Outside the US, construction production across the European Union rose 1.2% in March 2026, the final month of the prior quarter, extending a gradual recovery in the region's building activity. Resilient data-center spending and steady highway construction activity are on track to position the construction industry for modest growth through the remainder of 2026.
Posted by Peter Heydenrych.
Read the Entire Summer 2026 Engineering and Construction Report Here