Market Momentum: A Look at the Road Ahead
The construction market continues to show strong momentum, even as rising costs and supply chain volatility remain top of mind.
In May, construction input costs increased approximately 8% from the previous month, reflecting continued pressure on material pricing and availability. At the same time, total construction starts increased 34%, driven by significant investment in healthcare, manufacturing, utilities, and data center projects. Nonresidential building starts also rose nearly 18% over the month, highlighting continued confidence in commercial construction despite ongoing economic uncertainty.
Much of this activity is being fueled by large-scale data center development across the country. While these projects represent tremendous investment, they also create increased competition for materials, equipment, and skilled labor. As a result, owners who begin planning early are often better positioned to manage budgets, procurement timelines, and potential market fluctuations.
For us at Fiegen Construction, these industry indicators are encouraging. Our backlog remains strong heading into Q3 and Q4, and we're optimistic about the opportunities already taking shape for 2027. One of our greatest strengths is the diversity of our work. Our current and upcoming projects span a wide range of sectors, including healthcare (both large and small), higher education, entertainment, nonprofit, financial, commercial, and community-focused facilities. While much of the national conversation centers on data centers and other high-growth sectors, our portfolio reflects the strength of long-term relationships across many markets. Most importantly, our focus remains unchanged: taking exceptional care of the clients who have placed their trust in us while ensuring every new client receives the same level of communication, collaboration, and craftsmanship that has become the foundation of our reputation.
The months ahead present both opportunities and challenges, but we're confident in the road ahead. With a diverse portfolio of work, a talented team, and trusted relationships with our clients and trade partners, we're well positioned to continue delivering the level of quality and service our communities have come to expect from Fiegen Construction.
Lucas Fiegen, President
Fiegen Construction
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