The construction industry has shown signs of recovery with a 3.3% increase in infrastructure new work in September 2026, following a prolonged period of declining output. However, the overall construction output still fell by 0.7% in the third quarter, mainly due to a significant 4.7% slump in private house building.
What Happened
The latest government figures reveal a mixed picture for the construction sector. While September brought a welcome 0.9% rise in new work, and a 0.6% increase in repair and maintenance activities, the quarter as a whole saw a decline. New work orders increased by 1.2%, equivalent to £107 million, driven by public and private commercial projects. Despite these gains, the industry faces ongoing challenges, particularly from cost pressures, with construction output price inflation reaching 3.2% in September.
Notably, Clive Docwra, managing director of McBains, highlighted the cautious optimism in the sector, emphasizing the continuing impact of rising build costs. Jo Streeten from AECOM pointed out the need for a robust pipeline of projects to sustain recovery, expressing concerns over potential delays in the government’s 10-year infrastructure plan.
What This Means for Your Business
For AECM professionals and government contractors, the current landscape presents both opportunities and challenges. The increase in infrastructure and commercial projects could lead to new contracts and procurement opportunities, but firms must remain vigilant against inflationary pressures that could erode margins. Compliance with evolving standards, such as CMMC and NIST, is crucial as businesses navigate these changes. Competitive tendering may help mitigate cost increases, but strategic planning is essential to maintain a competitive edge and ensure ROI.
What US Operators Should Watch
Industry stakeholders should closely monitor federal funding announcements and procurement windows, especially relating to infrastructure projects. Keeping an eye on potential delays in government plans and regulatory changes will be critical for timely responses to market shifts. Businesses should also prepare for upcoming CMMC audit dates to ensure compliance and avoid disruptions.
Source: https://www.constructionenquirer.com/2026/11/12/construction-output-perks-up-after-four-month-slide/. Read the original story ->
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