NEW YORK, NY — QBE North America has released its US Commercial Construction Outlook, examining the current risk landscape and opportunities shaping commercial construction. Developed in partnership with Control Risks, the report highlights the continued strength of the market while identifying several challenges that could affect project execution and future growth.

“The commercial construction industry continues to demonstrate resilience,” said Ryan Powers, SVP, Head of Construction at QBE North America. “While opportunities tied to AI infrastructure, capital availability and domestic reshoring initiatives are significant, the risk landscape is evolving. Ongoing labor shortages, rising material and energy costs, and the rapid expansion of AI-driven projects are creating new challenges.”

Data Center Expansion Is Reshaping Construction Demand

Investment in data centers and other digital infrastructure is driving a disproportionate share of construction growth, with AI emerging as both a major market opportunity and a significant source of new risk.

The rapid expansion of AI infrastructure is increasing demand for specialized construction capacity while concentrating resources in a relatively narrow segment of the commercial market. For contractors, that growth comes alongside increasingly complex projects and evolving exposures that must be addressed during project planning.

Labor Constraints Continue to Pressure Project Execution

Labor availability remains a challenge across commercial construction, with an aging workforce and immigration restrictions adding to pressure on project timelines and execution.

The growth of data center construction is further concentrating demand for specialized workers, potentially creating workforce constraints for other construction sectors. As contractors compete for skilled labor, workforce availability can become an important factor in determining project schedules and capacity.

Material, Energy and Wage Costs Keep Projects Volatile

Cost volatility also remains elevated. Tariffs on key construction materials, energy prices and increased wages are contributing to continued cost pressure across commercial construction.

For contractors, those pressures can affect project budgets and execution as material and labor costs shift during the life of a project. The combination of elevated costs and increasingly complex construction work adds another layer of risk to project planning.

High Construction Spending Masks Slower Growth

Despite the challenges, the overall commercial construction outlook remains positive. Non-residential construction spending remained near historic highs in mid-2026.

However, spending growth has stalled, while forward-looking indicators point toward a weaker project pipeline. The combination suggests that contractors may continue operating in a high-volume market while facing slower growth ahead.

“As construction projects become larger, more complex and more expensive, understanding and managing risk is more important than ever. Insurers and brokers must work with their clients to incorporate risk management in project planning to safeguard timelines, improve outcomes and mitigate evolving exposures,” said Powers.

More information about QBE’s Construction practice is available at qbe.com/us/construction.