US Commercial Construction Outlook Largely Positive, Says QBE North America

QBE North America has released its U.S. Commercial Construction Outlook. The report, developed in partnership with Control Risks, explores near-term risks and opportunities for future growth in commercial construction.

“While the industry continues to navigate labor and cost challenges, the overall trajectory for commercial construction remains positive in the United States,” said Ryan Powers, SVP, head of construction at QBE North America. “Our report shows that there are significant opportunities due to industrial construction, tax cuts and private equity activity, foreign investments in America and green construction.”

Key themes explored in the 2025 report include:

• Labor shortages persist. Construction firms are facing difficulties finding enough workers to fill open positions during a period of record-high construction employment in the United States. An aging workforce and immigration restrictions are impacting the labor supply gap.
• Cost of materials has increased. Tariffs are increasing material costs for the construction sector in the short-term with the overall average weighted tariff rate at around 20%, up from 2-3% in January 2025. Tariffs are even higher on critical construction inputs such as steel, aluminum and copper.
• Construction investment to taper off after federal subsidies are allocated. Construction-related investment is expected to continue in the coming several years but will taper off throughout the next decade after existing public subsidies, tax credits and funding for domestic manufacturing are allocated.
• 2-3-year outlook is positive. Despite some near-term uncertainty, the 2-3-year outlook for the U.S. commercial construction sector is largely positive. Enthusiasm for advanced manufacturing investments will sustain growth in commercial construction and the U.S. market will remain an attractive investment destination.

“Given the headwinds and uncertainty, insurers and brokers must work with their clients to proactively manage new and existing construction risks,” said Powers. “Some companies may seek to fill the labor gap with inexperienced workers, which could impact work quality and safety. Meanwhile, geopolitical escalation of tariffs may impact project expenses and timelines. Tailored insurance solutions are essential to mitigating risks and safeguarding project timelines and financial stability.”

For more information, visit https://www.qbe.com/us/construction.