Chicago Construction News staff writer
The civil infrastructure sector is entering a phase of steady but slower growth, with Midwest contractors focusing on execution and backlog quality rather than aggressive expansion, according to a new industry report.
The FMI Fourth Quarter 2025 Civil Infrastructure Construction Index (CICI) stands at 50.6, hovering just above the expansion threshold of 50. The report notes that 32% of survey respondents operate in the Midwest, a region heavily engaged in the manufacturing and energy investment sectors that continue to perform well relative to national averages.
“Geographic variability remains pronounced,” the report notes. “Regions tied to manufacturing or energy investment [are] continuing to perform well, while those reliant on private vertical construction [are] slowing.”
For the Midwest construction community, the report highlights several headwinds:
- Labor Costs: Labor remains the primary driver of project budgets, with nearly half of all firms reporting quarter-over-quarter cost increases.”
- Productivity: Field productivity has stabilized but remains flat, with firms investing in scheduling tools and project controls to protect margins.
- Future Planning: Firms are planning for steady, organic growth through 2028, largely ignoring speculative private development in favor of secure public infrastructure and utility programs.
FMI predicts a “more competitive environment” for 2026, where profitability will depend on execution efficiency rather than market growth.
