Private Construction Spending Slid in May — What It Means for Labor in Gainesville

A new report from the Associated Builders and Contractors (ABC) confirms what many contractors have been feeling on the ground: private construction spending is under pressure.

According to ABC's analysis of U.S. Census Bureau data published July 2, 2026, nonresidential construction spending fell 3.8% over the past 12 months through May. Private nonresidential spending slipped 0.3% month over month in May and is now down 6.6% over the last 12 months — the seventh consecutive monthly decline.

The weakness is concentrated in two areas: manufacturing-related construction and office construction. Warehouse construction, which appeared to stabilize earlier in 2026, has now fallen for three consecutive months and is down 8.5% year over year. The general office category is in what ABC chief economist Ken Simonson called "a state of freefall," down 11.9% since May 2025.

The exception to the trend is data center construction, which continues to drive the majority of growth in the sector. Contractors with data center work have an average backlog of 11.6 months — about three months longer than firms without that type of work.

"For now, momentum remains largely concentrated in the data center segment," Simonson said. "Those fortunate enough to have data center work have significantly longer backlogs than those that do not."

While private spending slides, public nonresidential construction ticked up 0.4% month over month in May, though it remains only slightly up (0.3%) over the past 12 months. Highway and transportation construction has been one of the strongest segments of the market, and ABC officials are urging Congress to pass a new highway and transit bill before the current law expires on September 30.

"Highway construction is one of the strongest segments of the construction market," Simonson said. "Infrastructure investment is offsetting weakness in several private segments."

The national picture reflects a market that is bifurcating — strong in some segments, soft in others. For contractors and subcontractors in the Gainesville area, the takeaway is nuanced:

Where the work is:

• Institutional and public projects — The University of Florida continues to generate steady demand for construction labor, from ongoing renovations to new facilities. Projects like the Ben Hill Griffin Stadium renovation ($340M+) represent exactly the kind of institutional work that is holding up in this environment.
• Mixed-use and multifamily development — Projects like The Verve (227 units, 682 bedrooms near UF) signal continued demand in the residential and mixed-use space, even as national office and warehouse construction softens.
• Infrastructure — With federal highway funding still flowing and Congress under pressure to renew the transportation bill, road and infrastructure work remains a reliable segment.

Where to watch:

• Contractors heavily dependent on speculative warehouse or office projects may feel the national trend locally. If your pipeline is thin in those categories, now is the time to diversify into institutional, public, or mixed-use work.

In a bifurcated market, workforce flexibility becomes a competitive advantage. Contractors who can scale their crews up or down quickly — without the overhead of a large permanent workforce — are better positioned to pursue work across multiple segments.

That is exactly what All Florida Personnel does. We place vetted, ready-to-work construction labor with general contractors and subcontractors across Gainesville and Alachua County. Whether you are staffing up for a major institutional project or need to right-size your crew as a private project winds down, we can mobilize workers within 24–48 hours.

We are not a day labor hall. We place workers who show up, perform, and come back — because our reputation depends on it.

The national data confirms what experienced contractors already know: the construction market is not monolithic. Some segments are booming; others are contracting. The contractors who will thrive in this environment are the ones who stay nimble, pursue the right projects, and have reliable labor partners who can scale with them.

If you have projects coming up in Gainesville or North Central Florida, submit a worker request or call us at (352) 505-0503. We are ready to help you staff up — or right-size — for whatever the market brings.

Source: Construction Dive — Private construction spending slid in May, July 2, 2026