Going into the last quarter of 2026

By Emma Peterson. 

A look at the economic market, the industry outlook and more.  

In a new episode of Contractor Outlook™, Heidi J. Ellsworth sits down with Alex Chausovsky, the president and CEO of 3DM Consulting (a business and operations advisory firm), for a discussion about the state of the economy and construction industry going into the last quarter of the year.  

Alex began the conversation by highlighting the macroeconomics, saying, “Macroeconomically speaking, the economy has been nothing short of remarkable in terms of its ability to withstand... Think about things like the 2025 tariffs. They were hugely disruptive but at the same time we’ve seen companies adjust their prices, manage their margins and keep going.” And in a year with even more market upsetting events, like the war in the Middle East, remembering this resilience is important. As Alex put it:  

Everyone was really afraid because of those tariffs at the beginning of the year and it wasn’t as bad as we thought it might be. Economically speaking, the war is definitely a negative, but at the same time, it's not destroying the market... Looking at industrial production, which is a key benchmark for contractors and other B2B players, it’s still growing at a 1.5% pace year over year.  

This growth is very minimal, especially in the context of a GDP that, adjusted for inflation, is closer to 2.5-2.7%, but what that number does show us is that the industry is still here, that there are contractors still getting work, even with the struggles.  

How do you ensure you are one of the contractors getting work during this stressful time? Alex says it’s all about adaptability and scenario planning. He explained, “As we look out towards 2027, contractors should be asking themselves, what does my business look like? What does my supply of materials and components look like? What does the pricing environment look like? What do my energy costs look like? And how do I position myself where the demand is?”  

He gave an example of what this planning might look like, sharing, “If you look at data center spending through the end of 2025, it's bigger than all single-family housing, it's bigger than all factory construction, it's bigger than all industrial machinery.” He went on, “For contractors looking at this and trying to plan, they should look at their business and ask themselves, ‘Do I have the right people to be able to adapt with it as this market evolves?’” And if they don’t have those people, they need to find ways to get them, whether that’s hiring new talent or training your existing crew. Because operating in a market as complex as ours today is all about thinking ahead and having the right people in the right place.  

Listen to the whole episode or Watch the newscast to learn more!