New York Construction Report staff writer
Northeast construction firms are facing a tightening market where solid backlogs
are tempered by persistent cost pressures and a shrinking pipeline of private work, according to the Q4 2025 Civil Infrastructure Construction Index (CICI).
The Q4 2025 Civil Infrastructure Construction Index (CICI) closed at 50.6 in November 2025, signaling a stabilizing market. Approximately 17% of the survey’s respondents operate in the Northeast.
While federal funding is sustaining public activity, the report warns of increasing competition.
“Backlogs remain solid yet increasingly tied to federally funded projects; competition and margin pressure are rising,” the report states.
Key takeaways for the regional market include:
- Margin Squeeze: Despite healthy workloads, margins remain under pressure. Most contractors report flat profitability as rising labor costs erode pricing power.
- Segment Trends: Transit and rail, a critical sector for the New York tri-state area, remains
a key component of the industry, with 30% of national respondents active in that segment. - Strategic Hires: To maintain profitability, firms are focusing on “strategic hires” for
leadership in complex project delivery methods rather than broad headcount expansion.
The report concludes that while the “worst of materials inflation may have passed,” cost
certainty remains elusive for contractors planning for 2026.
