Construction’s next chapter: Challenges, demand and opportunity.

Construction’s next chapter: Challenges, demand and opportunity. SPONSORED CONTENT Commerce Bank | Apr 1, 2026 | 6:00 am | 4 min read time | 1,070 words | Business Insights Blog | By Commerce Bank Amid opportunities and questions, the U.S. construction industry continues to evolve in dynamic but sometimes challenging ways.  The first half of the 2020s was a study in contrasts for contractors. As the country and construction industry emerged from the slowdown and economic tumult caused by the COVID-19 pandemic, supply chain disruptions caused costs to soar. Labor shortages sapped the workforce. As a result, many outfits expressed concerns that profits would slip in the near-term, according to Associated Builders and Contractors.  Yet despite those headwinds — real and perceived — the U.S. construction industry remained strong in the first half of the decade, especially when compared with other countries. A similar dichotomy exists as the second half begins.  Lower rates and rising labor pressure.  One reason for companies’ optimism may be the Federal Reserve Board’s slow but continued easing of interest rates. Recent rate cuts, paired with two in 2024, brought the rate down from its 10-year high of 5.5% in early 2024. As falling interest rates begin to push up demand for services, the need for workers will only increase. In fact, Associated Builders and Contractors predict that the industry will need to add nearly 500,000 workers in 2026.  Slow payments tightening the screw...