How Contractors Can Beat High Costs and Labor Shortages in 2026

The development market is feeling the stress as of late. Materials prices are climbing, and it is getting harder to find skilled workers. Relying on the place you are working, some areas are busier than others.

The upside? Contractors who use good instruments and up-to-date knowledge will keep forward of the curve, even with an uncertain future.

Listed here are three easy methods you are able to do the identical, based mostly on what works, not wishful considering.

Some components of the trade are busy whereas others are slowing down. In line with the latest numbers from ConstructConnect®, building funding within the U.S. is up 7% this yr, largely because of industrial, business, and navy initiatives. On the flip facet, sectors like schooling, medical, and residential are nonetheless struggling.

In the event you work within the Western U.S., take into account that project starts are dropping from $177.9 billion in 2025 to about $148 billion by 2027 as huge initiatives wrap up. Civil building remains to be holding robust, although.

So, what does this imply for 2026? The good transfer is to be extra selective together with your bids. Use venture knowledge instruments like ConstructConnect® Project Intelligence to go after jobs that suit your strengths and desires, whether or not that is your commerce, your space, or season. Whenever you’re strategic, you chop down on wasted bids, enhance your margins, and are available out on prime extra usually.

On the lookout for assist choosing the right software program? Take a look at our free information: The Contractor’s Guide to Adopting Software with Ease.

Filling building roles remains to be an enormous headache. The latest AGC survey discovered that 92% of U.S. building corporations cannot discover sufficient staff, and a few third say shortages are inflicting delays. To prime it off, construction jobs have dropped for three months straight, despite the fact that pay goes up.

Here is what helps: Take the simple, repetitive stuff off your group’s plate. The extra you may automate the tedious duties—like paperwork, takeoffs, estimates, and monitoring down subs—the extra time your crew has for the essential work.

Instruments like AI-assisted Takeoff Boost™ by On-Screen Takeoff® can pace up your preconstruction work and assist everybody deal with successful extra jobs.

Need to get a head begin on 2026? Seize The Contractor’s Guide to Adopting Software with Ease to see how the precise instruments may also help you roll with no matter comes subsequent.