<div id="readability-page-1"><div> <div> , /PRNewswire/ -- Results from AGC of America's newly released 2026 Construction Outlook show that contractors across the Carolinas are entering the New Year with cautious optimism, especially in healthcare, power, water/sewer, and data center markets. While national expectations have &#34;dampened&#34; overall, North Carolina and South Carolina firms continue to report notable areas of momentum, along with steady backlogs and plans to grow their workforce. &#34;While contractors across the country are facing real uncertainty, the outlook from our members in North and South Carolina shows clear areas of strength,&#34; said Dave Simpson, President and CEO of Carolinas AGC (CAGC). &#34;Healthcare, data centers, power, and water and sewer work are creating meaningful opportunities across the Carolinas. Backlogs remain solid and many firms are planning to hire, which tells us construction is still a driving force for economic growth in our region. At the same time, workforce shortages and rising costs continue to be major challenges, reinforcing how important advocacy, workforce development, and smart infrastructure investment will be in the year ahead.&#34; North Carolina: Healthcare, Power, and Data Centers Lead the Way North Carolina contractors reported some of the strongest optimism in the southern region. The most positive outlooks were tied to healthcare, data centers, and power-related construction. &#34;We are seeing strong opportunities across data centers, water and wastewater, energy, manufacturing, and institutional work. There is a lot being built in North and South Carolina, and that diversity is important,&#34; said Jim Rhodes, Senior Vice President at Wayne Brothers Companies. &#34;It allows our industry to stay healthy and keep moving forward, even when individual markets fluctuate.&#34; <ul type="disc"> <li>Other healthcare facilities (clinics, testing, and medical facilities) showed the strongest outlook, with a 67% net positive reading, meaning far more firms expect growth than decline.</li> <li>Data centers and power projects both posted 50% net positive expectations, placing them among the most promising markets in the state.</li> <li>Contractors also expressed positive expectations for water/sewer (38%), hospitals (36%), multifamily residential (36%), and K–12 school construction (33%).</li> </ul> Nearly 55% of North Carolina firms described themselves as very confident or confident in their 2026 backlog and bidding pipeline. About 48% reported larger backlogs than this time last year, while another 31% said backlogs are about the same. Hiring expectations also remain strong, with 76% anticipating increased headcount in 2026. Workforce challenges continue. More than 90% of North Carolina respondents said they are having a hard time filling craft and salaried positions, reinforcing the need for continued workforce development, training, and recruitment initiatives. South Carolina: Hospitals, Data Centers, and Public Buildings Show Momentum South Carolina contractors reported optimism that exceeded the Southern regional averages in several major markets, led by hospital, K-12, and data center construction. <ul type="disc"> <li>Hospital construction leads all South Carolina markets with a 70% net positive outlook.</li> <li>Data centers followed closely at 67%, and other healthcare facilities posted a 60% positive reading.</li> <li>Public buildings and higher education both came in at 56% net positive expectations, signaling continued demand in institutional work.</li> </ul> Confidence levels were similar to North Carolina. Approximately 60% of South Carolina contractors said they are very confident or confident in their backlog and bidding pipeline, and 45% reported larger backlogs than a year ago. Hiring plans remain aggressive, with 70% expecting to increase headcount in 2026. Labor pressures are even more pronounced in South Carolina. 76% of firms reported difficulty filling craft positions, and 95% said they are struggling to fill salaried roles. Rising labor costs and worker availability ranked among the top concerns heading into 2026. &#34;If we want to grow this industry in a sustainable way, it comes down to people. Our ability to deliver projects more efficiently and to value the people putting that work in place is what will ultimately determine how successful we are,&#34; Rhodes said. Southern Region: Carolinas Outperform Several Traditional Markets Across the broader Southern region, contractors' strongest growth expectations are centered on data centers (60% net positive), hospitals (33%), power (32%), and water/sewer (28%). In contrast, retail and private office construction posted negative outlooks, reflecting a broader market shift already underway. Compared to the Southern averages, both North Carolina and South Carolina outperformed the region in healthcare, power, and data center optimism, reinforcing the Carolinas' position as a leader in these sectors. Regionally, about 71% of Southern firms expect to increase staffing levels, even as workforce shortages, rising labor costs, and economic uncertainty remain top concerns. National Outlook Cools, Carolinas Markets Remain Active Nationally, AGC's outlook found that contractors' expectations have softened overall, outside of data centers and power projects. Economic uncertainty, financing costs, tariffs, and workforce shortages continue to weigh heavily on contractors' outlooks. Against that backdrop, the Carolinas results stand out. Contractors in both states reported stronger-than-national confidence in healthcare, institutional, and utility-related markets, along with solid backlogs and continued hiring intentions. Despite the challenges, most Carolinas firms plan to grow in 2026, signaling continued demand for construction services and reinforcing the importance of Carolinas AGC's advocacy, workforce, and industry support efforts in the year ahead. Carolinas AGC (CAGC) is a construction trade association made up of small and large commercial contractors and construction-related firms that perform building, utility, and/or highway work in the Carolinas. CAGC is a chapter of AGC of America and ARTBA. Visit us at www.cagc.org, www.cagcfoundation.org, Facebook, YouTube, X, and LinkedIn. Learn about CAGC membership here CONTACT: Lori McGovern, [email protected] SOURCE Carolinas AGC <img src="https://imageproxy.pbkrs.com/https://rt.prnewswire.com/rt.gif/query-RGF0ZUlkPTIwMjYwMTEzJk5ld3NJdGVtSWQ9REM2MTEyMSZUcmFuc21pc3Npb25fSWQ9MjAyNjAxMTMwNzQwUFJfTkVXU19VU1BSX19fX19EQzYxMTIx?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://rt.prnewswire.com/rt.gif/query-RGF0ZUlkPTIwMjYwMTEzJk5ld3NJdGVtSWQ9REM2MTEyMSZUcmFuc21pc3Npb25fSWQ9MjAyNjAxMTMwNzQwUFJfTkVXU19VU1BSX19fX19EQzYxMTIx"/></div> </div></div>

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Contractors in the Carolinas are optimistic about 2026, particularly in healthcare, power, water/sewer, and data center markets, despite national uncertainty. North Carolina firms report strong backlogs and hiring plans, with 76% expecting to increase headcount. South Carolina contractors also show confidence, especially in hospital and data center construction, with 70% planning to hire. Both states face workforce challenges, with high demand for skilled labor. Overall, the Carolinas outperform the Southern region in key construction sectors, indicating robust economic growth potential.

07:40 ET Carolinas Contractors See Strong Opportunities in Key Markets Despite Broader Uncertainty