Dodge Index: August Planning Remains Flat
The Dodge Construction Network reported that non-residential construction planning remained virtually flat in August, with the Dodge Momentum Index (DMI) ticking down by a marginal 0.4% to a reading of 282.0, compared to a revised 283.0 in July.
Rather than signaling a widespread downturn, the report highlights a market undergoing a internal rebalancing: a cooling off in data center planning held back overall growth, even as momentum accelerated across most other sectors.
Commercial vs. Institutional Dynamics
Commercial Planning: Slipped by 3.0% over the month. The decline was largely driven by a breather in the booming data center sector. Slower planning in retail and warehouses also contributed, though office and hotel project planning showed renewed strength.
Institutional Planning: Grew by 4.9% month-over-month. Stronger activity in education, public buildings and recreational facilities propelled this segment, offsetting a minor pullback in healthcare following four consecutive months of growth.
Year-Over-Year Trends
Compared to August of the prior year, total non-residential planning momentum was up 4.2%, led by a 7.8% gain in institutional planning and a 2.3% rise in commercial planning. However, the report emphasizes how heavily the commercial sector depends on data center development; excluding server farms, commercial planning contracted by 18.9% year-over-year.
Key Projects Entering Planning
A total of 31 projects valued at $100 million or more entered the planning phase during the month.
Top Commercial Developments:
- Two EdgeConneX Data Centers in Bastrop, Texas ($462 million each)
- Phase 1 of the Bitdeer Data Center in Shalersville Township, Ohio ($378 million)
- A data center facility in Secaucus, New Jersey ($358 million)
Top Institutional Developments:
- Colosseum Sports Resort in Stafford, Virginia ($350 million)
- Commonwealth Courts Building in Richmond, Virginia ($350 million)
- Holistic Health and Fitness facility in Newport News, Virginia ($350 million)
According to Sarah Martin, director of economic research at Dodge Construction Network, the broad-based acceleration across non-residential sectors indicates solid fundamental health in the planning pipeline, even as data center activity briefly paused its explosive pace.
Lowe’s Foundation to Train 1 Million Craft Workers
The U.S. construction and infrastructure sectors face a severe labor bottleneck. According to Associated Builders and Contractors, the industry needs roughly 350,000 new craft workers in 2026 just to meet demand, while broader estimates project up to 2.1 million trade jobs could remain unfilled by 2030. In response to this growing gap, corporate America is making significant investments to rebuild the nation’s workforce pipeline.
In September 2026, the Lowe’s Foundation announced the formation of The Building Futures Skilled Trades Coalition, a cross-sector effort uniting more than 75 organizations. The alliance includes major companies across tech, manufacturing, energy and finance—such as Nvidia, General Motors, AT&T, Bank of America, DEWALT, Carrier and Duke Energy—alongside key trade groups like the National Association of Home Builders (NAHB) and SkillsUSA. Together, the coalition aims to train and develop 1 million new skilled trade professionals by 2035.
To reach that goal, the coalition focuses on three key priorities:
- Changing public perception: Reframing trade careers to challenge the long-held assumption that a four-year college degree is the only route to long-term success.
- Scaling effective training models: Investing in existing trade programs, establishing shared playbooks and expanding recognized credentialing pathways.
- Tracking outcomes: Standardizing metrics across partner organizations to follow candidates from initial training through long-term employment.
This initiative comes as physical infrastructure increasingly intersects with technological growth. Expanding AI data centers, power grids and telecom networks require steady teams of electricians, technicians and builders.
The Lowe’s Foundation initiative reflects a broader shift across major corporations taking direct action to build their own labor pools. Earlier in 2026, Meta launched its $115 million American Workforce Academy to train trade workers for data center construction, while Google pledged $50 million to support labor unions and trade associations across 20 states.
Construction Firms Shift Strategies to Attract and Retain Talent
With U.S. construction spending in its 14th year of growth, architecture, engineering and construction (AEC) companies face ongoing pressures from an aging workforce, trade shortages and unprecedented project scales. To compete for critical workers, industry leaders are treating employee pay as a strategic investment rather than an operational cost.
The 2026 Compensation Trends Study by FMI Corporation reveals key shifts in how construction firms structure base pay, incentives and travel perks to retain talent.
Transparency Drives Base Pay Formalization
Closed-door salary decisions are fading. Driven by evolving pay equity and transparency regulations, 78% of surveyed firms now use formal base-pay ranges, and 45% have established a formal compensation philosophy.
Highlights of base-pay trends include:
- Pay Increase Averages: Base pay budgets increased by an average of 4.3% in 2026, leveling off compared to post-pandemic spikes.
- Widespread Raises: 99% of responding companies plan to award raises this year, primarily through merit/performance increases (89%) and promotional raises (72%).
- Frequent Re-evaluations: 43% of firms update their base pay ranges annually, while 36% adjust them continuously as market conditions change.
Incentive Programs: Short-Term vs. Long-Term
While base pay remains the primary baseline for non-executives, incentive plans are essential to keeping employees engaged.
Short-Term Incentives (STI): Offered by 94% of companies, STIs are primarily structured to align with business goals (76%) and share firm success. Popular STI structures include structured/goals-based bonuses (76%), referral bonuses (66%) and discretionary bonuses (66%). Notably, all surveyed firms make superintendents, supervisors and operations managers eligible for STIs.
Long-Term Incentives (LTI): For the first time in the study’s history, LTI adoption passed the halfway mark, with 55% of firms offering long-term plans—a sharp rise from the historical 35%–40% range. Unlike STIs, the primary goal of LTI plans is retention (63%). Long-term or deferred cash payouts dominate the market (41%), fitting an industry largely made up of private and closely held companies.
Traveling Workers Demand Flexible Support
As projects grow in distance and complexity, 58% of firms require employees to travel to jobsites. However, governance around travel compensation remains largely informal:
- Only 28% of companies have a formal written travel policy.
- 40% determine travel benefits on a case-by-case basis, while 35% vary benefits based on employee role or seniority level.
- Per diems (79% for short-term, 70% for long-term) and mileage reimbursements remain the most common travel benefits, followed by company-paid trips home and housing allowances.
With turnover leading to project delays, knowledge loss and higher recruiting expenses, AEC leaders are prioritizing retention. Standardizing compensation frameworks and expanding incentive offerings have quickly become necessity for firms navigating complex project demands.
Data Centers Drive a Surge in U.S. Construction Hiring
After months of mixed signals, the U.S. construction labor market found clear footing in July 2026. Powered by an unrelenting wave of data center developments and power grid projects, contractors aggressively expanded their teams while competing for a shrinking pool of available talent.
According to new Bureau of Labor Statistics (BLS) data, unfilled job openings jumped 9.4% month-over-month to 326,000, leaving roughly 3.8% of all industry positions vacant. At the same time, new hires surged 14.7% to reach 366,000—pushing the industry’s hiring rate to its highest point in nearly two years.
A Tug-of-War for Skilled Talent
The hiring surge highlights a familiar dilemma for builders: work is booming, but finding enough hands remains tough.
“Contractor hiring accelerated while layoff activity slowed,” said Anirban Basu, chief economist for Associated Builders and Contractors, pointing to power-related builds and data center demand as primary growth drivers.
Low layoff numbers indicate that construction firms are holding tightly to the workers they already have. However, industry experts caution that the broader labor picture remains complex. Macrina Wilkins, director of market insights for the Associated General Contractors of America, noted that contractors still face structural hurdles, including a persistent shortage of skilled trade workers, difficulties matching specialized roles and potential labor losses linked to stricter immigration enforcement.
Despite ongoing labor constraints, July’s numbers offer a clear verdict: contractors are winning new work and bringing on new crew members faster than they have in years, signaling renewed strength across the sector.
