The report below gives a good overview of the Winter 2026 M&A activity in the Engineering and Construction Industry Sector. The Engineering and Construction market saw uneven growth in the final quarter of 2025. Despite stabilizing inflation, ongoing labor shortages and political changes weighed on the industry; consequently, total U.S. spending is projected to fall 1% for the year, a reversal from the 6% growth seen in 2024.. Areas like Asia-Pacific were on the frontline with strong infrastructure outlays, whereas North America and Europe were ambivalent due to data centers and public works. High borrowing costs continued to hinder the residential sector throughout 2025. U.S. single-family construction spending was projected to drop 3% to $426 billion, while international markets faced similar declines due to global affordability pressures. While traditional office vacancy rates hovered around 20%, the "office-related" spending category remained high—reaching up to $106 billion. This was primarily driven by massive investments in state-of-the-art data centers and specialized AI facilities, which offset the decline in traditional workspace demand. Construction of highways, streets and bridges continued to improve with a 69% in execution/pre-execution of a $607.4 billion global pipeline and state awards increased 11.7% early-year due to urbanization and government funding.
Posted by Peter Heydenrych.
Read the Entire Winter 2026 Engineering and Construction Report Here