Week of May 11, 2026

Construction Input Prices Climb in April, Outpacing Three-Year Gains in Four Months

• Construction input prices rose 1.7% in April compared to the previous month, while nonresidential construction input prices climbed 1.8%, according to an Associated Builders and Contractors (ABC) analysis of U.S. Bureau of Labor Statistics Producer Price Index data. Year-over-year, overall construction input prices are up 7.0%, with nonresidential up 7.4%.

• All three energy subcategories, crude petroleum, unprocessed energy materials, and natural gas increased 11.3%, 9.2%, and 4.9%, respectively, in April, putting upward pressure on most construction materials. Tariff-affected materials such as iron and steel also recorded large price increases.

• ABC Chief Economist Anirban Basu noted that input prices have risen more during the first four months of 2026, 6.2%, than over the prior three years combined, 4.8%. Basu added that "too-hot inflation data coupled with upbeat labor market indicators suggest that the Federal Reserve is unlikely to cut rates this year," signaling that borrowing-cost relief for construction activity is unlikely in the near term.

• While ABC's Construction Backlog Indicator shows contractors remain busy, the combination of energy-driven escalation, tariff-affected materials, and sustained borrowing costs is likely to weigh on construction activity in the months ahead, complicating fixed-price bids and increasing procurement risk across the industry.

FERC Weighs First-Ever Federal Oversight of Large-Load Data Center Grid Connections

• The Federal Energy Regulatory Commission will decide by June on a proposed rulemaking that could, for the first time, extend federal oversight to hyperscale data centers and other large-load interconnections to the interstate transmission system. The advance notice of proposed rulemaking, or ANOPR, defines large loads as those greater than 20 MW.

• The action stems from an October 2025 directive from U.S. Energy Secretary Chris Wright, issued as utilities face mounting pressure to accelerate transmission upgrades and grid interconnections to support the growth of hyperscale data centers and the expanding power demands of artificial intelligence infrastructure.

• Historically, FERC has not directly regulated end-use customer interconnections, which have fallen to state authority. The U.S. Department of Energy argues that large-load transmission interconnections warrant expanded federal oversight as AI-related electricity demand accelerates, while a National Electrical Manufacturers Association analysis projects regional demand growth through 2050 driven by data centers and EV adoption.

• The rulemaking could reshape how utilities study and approve large-load interconnections, allocate transmission upgrade costs, and coordinate generation additions, with direct implications for design and construction firms supporting substations, transmission infrastructure, and grid upgrades as utilities race to meet AI-driven electricity demand.

May 7, 2026

CivilOne, a Nevada-based civil engineering and land surveying firm, has acquired Dwyer Engineering (Dwyer), a Nevada-based civil engineering firm. This acquisition expands CivilOne’s engineering capabilities and strengthens its footprint across Nevada, Southern Utah, and Northern Arizona. “This strategic partnership with Blayne and the team at Dwyer Engineering is an important step forward for CivilOne as we continue to expand our capabilities and strengthen the value we bring to our clients,” said James Bristow, CEO of CivilOne. “Dwyer has built a strong reputation in Southern Nevada, and we’re excited to build upon that foundation as we grow our platform and continue delivering high-quality, reliable solutions across the region.”

May 11, 2026  

SAM, a Texas-based surveying and mapping firm, backed by Peak Rock Capital, has acquired Donaldson, Garrett & Associates (DG&A), a Georgia-based land surveying firm serving commercial, utilities, and local government clients. This acquisition better equips SAM to serve the Southeast’s growing infrastructure activity while strengthening its service offerings, particularly for utility-related work. “DG&A brings exactly the kind of local strength, technical experience, and client partnership that aligns with SAM’s strategic growth priorities,” commented Chris Solomon, President and CEO of SAM. “This acquisition expands our surveying capacity in Georgia and North Carolina, strengthens our position in the utilities market, and creates new opportunities to deliver broader solutions to clients through SAM’s platform.”

May 12, 2026 

Colliers Engineering & Design, a New Jersey-based architecture, engineering, planning, and design firm and the U.S. engineering division of Colliers, a Toronto-based leading diversified professional services and investment management company, has entered into a definitive agreement to partner with Frankfurt-Short-Bruza Associates (FSB), an Oklahoma-based multidisciplinary engineering and design firm that provides MEP engineering, structural engineering, and architectural services. This strategic move positions FSB to lead the development of a national aviation practice for Colliers, supported by its strong reputation and client relationships, while also enhancing Colliers’ ability to meet growing demand for data center projects. “FSB has built an exceptional reputation delivering complex aviation, federal, and mission‑critical projects,” stated Kevin L. Haney, President and CEO of Colliers Engineering | U.S. “Their design‑led culture, deep engineering expertise, and established client relationships are a perfect fit for our organization. We are thrilled to welcome their talented team and expand our capabilities in these growing end markets.”

May 14, 2026 

WSB, a Minnesota-based design and consulting firm, backed by GHK Capital Partners, has acquired Alta Science & Engineering, an Idaho-based science and engineering firm with expertise in environmental and infrastructure solutions. This acquisition expands WSB’s presence in the Pacific Northwest and strengthens its ability to support public and private sector clients navigating complex environmental, regulatory, and infrastructure challenges. “The acquisition of Alta Science & Engineering represents a strategic investment in the continued growth of WSB’s environmental capabilities,” said Bret Weiss, President and CEO of WSB. “Alta is widely respected for its scientific excellence, thoughtful problem‑solving, and people‑first culture. Their expertise complements our existing services and strengthens our ability to deliver integrated, science‑based solutions for our clients.”

May 14, 2026 

Baxter & Woodman, an Illinois-based infrastructure, planning, design, and construction services firm, has acquired Hermann & Associates, an Illinois-based firm with expertise in transportation and infrastructure projects. This acquisition strengthens Baxter & Woodman’s presence in Illinois and brings together two firms with a shared commitment to responsive service, technical excellence, and long-term client value. Lou Haussmann, President and CEO of Baxter & Woodman, commented, “Hermann & Associates has built a strong reputation through quality work and lasting relationships. It’s clear Alicia and Jeff have created something special. We’re excited to support their team with additional resources while preserving the service their clients trust.”

WJE team members participated in Career Friday at Joe Lee Johnson Elementary School in Austin, Texas, introducing second graders to careers in engineering and architecture. The team walked students through foundational engineering concepts including compression and tension loads, followed by a hands-on paper bridge challenge that allowed students to apply what they had learned. The visit reflects WJE's continued commitment to community engagement and early STEM outreach, helping spark interest in the next generation of architecture and engineering professionals.

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 Clay Han at chan@efcg.com.