Weekly Briefing: September 18, 2026
Week of September 14, 2026
Nonresidential Backlog Rebounds as Data Center Demand Tightens Labor Market
Associated Builders and Contractors (ABC) reported that its nonresidential backlog measure increased by half a month in August, rising from 8.0 months to 8.5 months and matching the level recorded one year earlier. Contractors with data center work reported a stronger 9.9 months of backlog, compared to 8.3 months for firms without data center projects.
Roughly one in six ABC members reported having data center work, the highest share recorded in the survey, underscoring the sector’s growing role in supporting nonresidential construction activity.
ABC’s staffing confidence index declined from 62.3 in July to 59.5 in August, indicating weaker hiring expectations. However, the August reading remained above 50, the threshold signaling expected staffing growth over the next six months, even as 12.3% of contractors planned to reduce staffing.
For AEC firms, the higher backlog among contractors with data center work points to continued near-term demand, but labor constraints could make projects more expensive and difficult to staff. Among firms experiencing workforce effects from data center activity, 58% said it had intensified competition for skilled labor, while 49% said it had contributed to upward pressure on wages.
Fed Rate Increase Adds Financing Pressure to Construction Projects
The Federal Reserve raised its interest-rate range by 25 basis points to 3.75%–4.00%, marking its first increase since 2023 as inflation remained above the central bank’s 2% target.
The rate increase comes as the industry is already dealing with higher construction input prices. Elevated material and labor costs are pressuring project economics, leaving owners and developers with less room to absorb higher financing costs.
Industry economists said the rate increase will immediately raise the cost of floating-rate construction loans and prime-linked short-term credit. The added expense could push marginal commercial projects below their profitability targets, increasing the risk of delayed payments, project holds, or abandonment on active work.
For AEC firms, the rate increase may create greater near-term risk in housing and private commercial development, which are more sensitive to borrowing costs. Firms may need to evaluate owners’ financing capacity more closely when pursuing new work and monitor receivables on debt-dependent projects.
September 14, 2026
Wold Architects & Engineers (Wold), a Minnesota-based planning, architecture and engineering firm, backed by Providus Capital Partners, has acquired Klein McCarthy Architects, a Minnesota-based architecture firm specializing in government and justice facility design. This acquisition strengthens Wold's established government practice and expands its presence throughout Minnesota while supporting continued growth across Wisconsin, North Dakota, and South Dakota. "Like Wold, they've built their reputation by listening first, building trusted relationships and designing facilities around the unique needs of each community they serve. Bringing our teams together expands our capacity and expertise while preserving everything that has made both firms successful," said Vaughn Dierks, CEO of Wold.
September 15, 2026
Core States Group, a Pennsylvania-based architecture, engineering and construction firm that delivers multi-site design and construction programs for retail, restaurant, convenience, grocery and energy clients, backed by Wacona Capital, has acquired Hurley & Stewart, a Michigan-based civil engineering, land surveying and landscape architecture firm serving municipal, commercial and industrial clients. This acquisition brings Core States Group to 26 offices nationwide and enables the firm to continue driving strategic growth. "Hurley & Stewart strengthens our regional presence in the Midwest and expands our ability to support national programs while delivering the local insight that creates real value for our clients," said D. David Dugan, President and CEO of Core States Group.
September 15, 2026
Salas O'Brien, a California-based multidisciplinary engineering firm, backed by Blackstone, has acquired Coleman Engineering, a California-based water and wastewater engineering firm serving public and private clients on pump stations, storage tanks, treatment facilities, utility operations and water, and sewer and recycled water systems. This acquisition provides Salas O'Brien with added depth in planning, hydraulic modeling, funding support, and contract operations. "This merger significantly strengthens Salas O'Brien's capabilities in water and wastewater systems, infrastructure that mission-critical facilities depend upon to operate reliably every day. Coleman Engineering's deep expertise enhances our ability to build resilient infrastructure that keeps essential operations running and improves quality of life," said Darin Anderson, Chairman and CEO of Salas O'Brien.
September 15, 2026
STV Group (STV), a New York-based professional services firm that plans, designs and manages infrastructure projects across North America, backed by The Pritzker Organization, has acquired CHAMPS, a California-based utility power engineering firm providing substation engineering and design from planning through energization. This acquisition expands STV's power business, which spans utility grid and substation upgrades, traction power systems for transit and resilient facilities, and campus power. "As demand for reliable, resilient power continues to grow across the country, this acquisition strengthens our ability to help clients modernize their systems and meet the needs of the communities they serve," said Greg Kelly, CEO of STV.
September 16, 2026
Consertus, a Florida-based global capital program management and advisory firm, backed by RTC Partners, has acquired S2 Engineering, a California-based provider of construction management, inspection, engineering, and materials testing services for public infrastructure projects. This acquisition expands Consertus' capabilities in transportation and public works, extending its support for capital programs from planning through construction close. "Their strong presence in California, technical expertise, and longstanding agency relationships strengthen our position in a key infrastructure market and enhance our ability to support public sector clients across the region," said Roy Block, CEO of Consertus.
HDR distributed more than $415,000 through 136 grants supporting food banks in the United States, Canada, Australia, and the United Kingdom. U.S. organizations received 122 grants worth $396,750, while 10 Canadian food banks received CA$23,500, three Australian food banks received AU$6,000, and one U.K. organization received £1,500. Employee contributions to the HDR Foundation and the firm’s international philanthropic funds financed the awards, while employees from several HDR offices also volunteered with local food banks. Funded and guided by HDR employees, the Foundation focuses on education, healthy communities, and environmental stewardship, particularly in communities where employees live and work. That employee-led approach was also reflected in the firm’s annual Day of Giving, when more than 8,000 employees contributed over $2.24 million to the Foundation and its affiliated global funds.
The EFCG Weekly Briefing summarizes the week’s key news in the AEC industry, including M&A updates, and micro- and macro-trends, aggregated from industry-focused and global news sources.
To send any additional press releases or news from your firm that you would like us to share please email Fatima Moumen at fmoumen@efcg.com.
