Four Key Takeaways and the EPIC Advantage
Today’s construction industry confronts a new era defined not just by complexity, but by the opportunities that emerge from it. Economic uncertainty, shifting federal and state policies, and evolving client demands have slowed the rapid growth of previous years. Yet, in this turbulence lies potential.
Volatility is reshaping the industry, prompting innovation, strategic pivots, and deeper collaboration. At EPIC, we see this moment not as a challenge to endure, but as a chance to lead. Through specialized expertise and a commitment to collaboration, we’re helping clients turn disruption into direction.
Here are four key takeaways from the current construction landscape and how EPIC is stepping up to turn uncertainty into opportunity.
1. Spending Has Drastically Slowed
Construction spending for commercial, industrial, and institutional facilities is expected to grow just 2.2% this year and 2.6% in 2026, a sharp contrast to the 20% in 2023 and 6% last year.[1] While many residential and commercial sectors face these challenges, design-build, infrastructure, and most notably data center construction continue to accelerate at a near-exponential pace due to strong public investment and bipartisan support.
The EPIC Advantage: We support clients in navigating complex funding structures and long-term project exposures by leveraging our deep expertise in public-private partnerships and industry-specific risk management.
2. Labor Shortages Continue
Associated Builders and Contractors (ABC) estimates that the construction industry will need to bring in nearly 500,000 new workers this year as spending picks up in response to presumed lower interest rates.[2] Although construction unemployment levels remain very low, labor participation is stuck and has still not reached pre-pandemic levels. While the industry has become younger in recent years, there is a real worry about replacing retirees. The current administration’s approach to immigration may also further diminish the supply of qualified workers.
The EPIC Advantage: We closely monitor construction market trends and stay dialed in to our clients’ business growth, tailoring insurance programs, safety incentives, and alternative risk solutions to account for project delays and inexperienced labor-related exposures.
3. Risks Ahead
High interest rates, global supply chain disruptions, and new tariffs are creating a volatile environment. According to the latest AIA Consensus Construction Forecast, developers and contractors are increasingly cautious, especially in sectors like manufacturing and warehouse facility construction.[3]
The EPIC Advantage: We help clients navigate today’s volatile environment by developing tailored risk transfer strategies that address their unique challenges. We work with virtually every market in the construction industry to identify coverage gaps, negotiate favorable policy terms, and provide insights grounded in real-time market trends.
4. Specialization and Collaboration Win
In this environment, generalist approaches fall short. Clients need advisors who understand the nuances of their sector, from bonding and builder’s risk to environmental and cyber exposures.
The EPIC Advantage: Our approach is simple. We leverage the entirety of our construction network, bringing together cross-functional teams, with built-in accountability, consisting of insurance professionals who are also architects, engineers, general contractors, claims advocates, and legal experts who can deliver holistic, proactive solutions. This cross-functional collaboration ensures our clients are not just protected but positioned to grow.
[1] American Institute of Architects (AIA). “Softness in construction spending predicted for 2025 & 2026”. (2025, January 17
[2] Associated Builders and Contractors (ABC). “Construction Industry Must Attract 439,000 Workers in 2025”. (2025, January 24).
[3] American Institute of Architects (AIA). “Softness in construction spending predicted for 2025 & 2026”. (2025, January 17).
