The Uneven Landscape of Construction Backlogs
The construction industry is experiencing a noticeable disparity, characterized by a growing gap between the backlogs of large and small firms. Recently reported data by the Associated Builders and Contractors (ABC) highlights that while the overall construction backlog has seen a slight uptick to 8.2 months, this increase heavily favors larger contractors, particularly in the data center segment.
The Data Center Driving Force
As detailed in industry surveys, contractors with more than $100 million in annual revenue are witnessing their highest backlogs since 2021, largely fueled by a relentless demand for data centers. In stark contrast, smaller contractors, those with revenues below $30 million, are grappling with their lowest backlogs in the same period. This trend is largely attributed to the AI and data center boom, as Anirban Basu, ABC's chief economist, asserts that smaller firms are missing out on many of these lucrative projects.
Looking Ahead: What’s Next for Construction?
Looking into 2026, the disparity is expected to widen further. As hyperscale data centers continue to develop at a breakneck pace, the contractors engaged in this sector anticipate sustained activity, while those outside of it are likely to see their backlogs continue to shrink.
Impacts on Confidence and Opportunity
In December 2025, despite a slight rise in contractor confidence levels, the optimism remains subdued compared to previous years, mainly affected by the diminishing backlog for smaller firms. This divided confidence underscores the need for contractors to specialize and align with sectors that are performing well.
Conclusion: Finding Opportunities in Adversity
For homeowners and small contractors, understanding this market bifurcation is crucial. The ongoing demand for home improvement and renovation services remains strong, even as some sectors struggle. Whether you're seeking a 'home improvement service near me' or planning major renovations, ensuring that you work with contractors who are actively engaged in thriving segments like data centers could offer new opportunities. Act now and explore how these insights can guide your next remodeling project!
Add Row
Add

Write A Comment