Topline growth obscures general weakness

BOSTON, MA — February 20, 2026 — Total construction starts expanded 0.7% in January to a seasonally adjusted annual rate of $1.24 trillion, according to Dodge Construction Network. Nonresidential building starts fell by 15.4%, residential starts decreased 6.4%, and nonbuilding starts grew 24.3% over the month. On a year-over-year basis, total construction starts were up 5.0% from January 2025. Nonresidential starts were down 10.3%, residential starts were down 17.0% and nonbuilding starts were up by 46.1% over the same period. For the 12 months ending January 2026, total construction starts were up 6.1% from the 12 months ending January 2025. Residential starts were down 6.0%, nonresidential starts were up 5.5% and nonbuilding was up 21.0%.  

“Nonbuilding construction remained the primary engine of growth in the first month of 2026,” stated Eric Gaus Chief Economist at Dodge Construction Network. “Three mega projects in the nonbuilding sector accounted for nearly $20 billion or almost half of the growth in January, which would mean total construction would have been negative without those three projects.”  

Residential 

Residential building starts fell by 6.4% in January to a seasonally adjusted annual rate of $345 billion. Single family starts increased 1.5% m/m, while multifamily starts fell by 17.8% m/m. On a year-over-year basis, residential starts are down 17.0% compared to January 2025, with single family starts down 21.5% and multifamily starts down 9.2%. 

For the 12 months ending January 2026, total residential starts fell 6.0%. Single family starts fell 15.2% compared to the 12 months ending January 2025, and multifamily starts increased 13.6% over the same period.  

The largest multifamily structures to break ground in January were the $335 million 38 Gramercy Park East Condominiums in New York, New York, the $265 million Lakeview Residence in West Palm Beach, Florida and the $200 million Homestead Gateway Mixed Residential Tower in Jersey City, New Jersy.  

Nonresidential 

Nonresidential building starts decreased 15.4% in January to a seasonally adjusted annual rate of $378 billion. Commercial starts were down 27.3%, alongside a drop in offices and data centers (-52.2% m/m), parking garages (-6.7% m/m) and hotels (-17.4% m/m). Meanwhile, warehouses (+10.2% m/m) and retail starts (+6.5% m/m) posted an increase between December and January. Institutional starts declined 15.2%, driven by weaker education (-21.9% m/m) and miscellaneous institutional (-26.1% m/m) starts. This decline was partially offset by 10.5% m/m growth in healthcare facility starts. Manufacturing, meanwhile, pulled up by 97.5% in January. On a year-over-year basis, nonresidential starts are down 10.3% compared to January 2025. Commercial starts are up 14.2% and institutional starts are down 29.6% over the same period.   

For the 12 months ending January 2026, total nonresidential starts were up 5.5% compared to the 12 months ending January 2025. Commercial starts were up 19.4%, institutional starts decreased 4.4%, and manufacturing starts were up 3.5% over the same period.  

The largest nonresidential building projects to break ground in January were the $1.2 billion New York Presbyterian Cancer Center in New York, New York, the $1 billion Amkor Semiconductor Advanced Packaging (Phase 1) in Peoria, Arizona and the $714 million QTS CLT1 Data Center (Phase 1) in York, South Carolina.  

Nonbuilding

Nonbuilding construction starts grew 24.3% in January to a seasonally adjusted annual rate of $522 billion. The category was held up solely by the electric power/utilities which soared by 184.8%. However highways and bridges (-42.3% m/m), miscellaneous nonbuilding (-31.5% m/m) and environmental public works (-5.9% m/m) faced declines.  

For the 12 months ending January 2026, total nonbuilding starts were up 21.0%. Environmental public works fell by 5.3% compared to the 12 months ending January 2025. Highway and bridge starts were up 3.4%, miscellaneous nonbuilding starts were up 36.2% and utility/gas starts increased 67.9% over the same period.  

The largest nonbuilding projects to break ground in January included the $12 billion Port Arthur LNG – Liquefaction Phase 2 (Trains 3 & 4) in Port Arthur, Texas, the $6 billion Homer City Energy Campus 4.4 GW in Homer City, Pennsylvania and the $1.5 billion Tehuacana Creek 1 Solar and Battery Storage project in Navarro, Texas.  

Regionally, total construction starts in January rose in the Northeast (+32.0% m/m), the South Central (+9.6% m/m), and the South Atlantic (+2.2% m/m). Meanwhile, starts slowed down in the West (-21.1% m/m) and the Midwest (-12.6% m/m). 

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Nonresidential Planning Levels Off; Data Centers Continue to Support Strong Levels 

BOSTON, MA – February 6, 2026 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, declined 6.3% in January to 272.7 (2000=100) from the downwardly revised December reading of 291.0. Over the month, commercial planning fell 7.2% and institutional planning momentum slowed by 4.4%.  

“Planning momentum cooled in January across most commercial and institutional sectors,” said Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “Data center projects continue to lead the way, but after elevated activity in late 2025, most nonresidential sectors are now easing into a more sustainable growth pattern.” 

On the commercial side, planning momentum slowed across all commercial sectors apart from retail stores. Within institutional planning, education, healthcare and public building planning slowed in January – while recreational and religious building projects continued to expand.  

Year-over-year, the DMI was up 29% when compared to January 2025. The commercial segment was up 26% (+17% when data centers are removed) and the institutional segment was up 34% over the same period.  

A total of 35 projects valued at $100 million or more entered planning throughout January. The largest commercial projects included the $500 million IEP Data Center (Project Hummingbird) in Monongahela Township, Pennsylvania, the $400 million Mountain Road Technology Park Data Center in Glen Allen, Virginia, and the $350 million Bitfarm Data Center in Nesquehoning, Pennsylvania. The largest institutional projects to enter planning were the $250 million USACE Barracks in Fort Hood, Texas, the $175 million UEPH Barracks at Joint Base Myer-Henderson in Arlington, Virginia, and the $148 million Eurofins Lancaster Biopharmaceutical Laboratory and Office Building in Lancaster, Pennsylvania.  

The DMI is a monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year to 18 months.  

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Nonbuilding & data center starts drove 2025 growth.

BOSTON, MA — January 23, 2026 — Total construction starts expanded 2.6% in December to a seasonally adjusted annual rate of $1.24 trillion, according to Dodge Construction Network. Nonresidential building starts fell by 6.6%, residential starts increased 1.0%, and nonbuilding starts grew 16.3% over the month. For the full year, total construction starts expanded 5.4%. Nonresidential starts were up 4.5%, residential starts were down 4.8% and nonbuilding starts were 18.7% higher when compared to 2024.  

“Nonbuilding construction, alongside data centers, was the primary engine of growth in 2025, supporting a 5.4% expansion in the total dollar-value of starts,” stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “In square footage terms, however, building starts declined 4.7% alongside weaker residential, manufacturing, and institutional activity.”  

Residential 

Residential building starts rose by 1.0% in December to a seasonally adjusted annual rate of $370 billion. Single family starts decreased 4.5% m/m, while multifamily starts gained 10.2% m/m. In 2025, residential starts decreased 4.8% – with single family starts down 13.2% and multifamily starts up 13.1%.  

The largest multifamily structures to break ground in December were the $502 million Launiu Ward Village Condominiums in Honolulu, Hawaii, the $500 million The Alloy Block Residential Tower (Phase 2) in Boerum Hill, New York and the $272 million SDSU Mission Valley Residential Building in San Diego, California.  

Nonresidential 

Nonresidential building starts decreased 6.6% in December to a seasonally adjusted annual rate of $450 billion. Commercial starts were up 9.8%, alongside growth in offices and data centers (+7.4% m/m), parking garages (+38.8% m/m), hotels (+74.4% m/m) and warehouses (+0.7% m/m). Meanwhile, retail starts (-12.2% m/m) posted a decline between November and December. Institutional starts declined 16.3%, driven by weaker education (-18.2% m/m) and miscellaneous institutional (-26.9% m/m) starts. This decline was partially offset by 7.9% m/m growth in healthcare facility starts. Manufacturing, meanwhile, pulled back 30.8% in December. In 2025, nonresidential starts improved 4.5%. Commercial and industrial starts expanded 10.9% and institutional starts receded 1.9% when compared to 2024.  

The largest nonresidential building projects to break ground in December were the $1 billion Google Data Center (Phase 1) in West Memphis, Arkansas, the $750 million CyrusOne Data Center in Whitney, Texas and the $714 million SNA Data Center (Phase 2) in Cedar Rapids, Iowa.  

Nonbuilding

Nonbuilding construction starts grew 16.3% in December to a seasonally adjusted annual rate of $422 billion. Highways and bridges (+85.2% m/m) and miscellaneous nonbuilding (+35.9% m/m) supported growth, while environmental public works (-26.9% m/m) and electric power/utilities (-9.0% m/m) faced declines.  

The largest nonbuilding projects to break ground in December included the $3.5 billion Port Authority Midtown Bus Terminal (Phase 1) in New York, New York, the $1.6 billion Entergy Legend Power Station (754 MW) in Port Arthur, Texas and the $1.5 billion LAX Airport Roadway Improvements project in Los Angeles, California.  

Regionally, total construction starts in December rose in the Northeast (+12.1% m/m), the South Central (+15.6% m/m), and the West (+6.9% m/m). Meanwhile, starts slowed down in the South Atlantic (-2.9% m/m) and the Midwest (-19.0% m/m) 

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Economic Risks Persist, but Key Sectors Signal Positive 2027 Outlook 

BOSTON, MA – January 8, 2026 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network grew 7.0% in December to 296.8 (2000=100) from the upwardly revised November reading of 277.4. Over the month, commercial planning improved 3.5% and institutional planning increased by 14.9%. In 2025, the DMI was up 37% from the average reading in 2024. The commercial portion was up 35% and the institutional portion was up 43% over the same period. 

“Nonresidential construction starts (excluding manufacturing and transportation) are projected to accelerate in 2027 alongside sustained planning momentum in data center, healthcare and recreational building construction throughout 2025,” stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “Inflationary pressures will further support nominal activity levels, even as economic risks remain elevated. Notably, projects moved through the planning process marginally quicker in 25-Q4 (16 months vs. 18 months in 25-Q3), offering a modest boost to our near-term outlook.” 

On the commercial side, planning momentum accelerated most strongly for warehouses, office buildings and data centers. Within institutional planning, education and recreational building activity showed the strongest growth, while planning for public buildings pulled back after elevated activity in mid-2025. Year-over-year, the DMI was up 50% when compared to December 2024. The commercial segment was up 45% (+30% when data centers are removed) and the institutional segment was up 60% over the same period.   

A total of 34 projects valued at $100 million or more entered planning throughout December. The largest commercial projects included four phases of the Google Data Center Campus in Summit, Oklahoma – each valued at $500 million dollars. Additionally, Phases 2 and 3 of the Central Park Data Information Processing Center in Loxahatchee, Florida entered planning – valued at $473 million and $431 million respectively. The largest institutional projects to enter planning were the $450 million Atrium Health Hospital in Fort Mill, South Carolina, the $295 million St. Joseph Hospital Tower (Phase 2 Expansion) in Stockton, California, and the $182 million SunRay Casino and Park in Clovis, New Mexico.  

The DMI is a monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year to 18 months.  

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A lack of megaprojects normalized activity.

BOSTON, MA — December 22, 2025 — Total construction starts were down 20.5% in November to a seasonally adjusted annual rate of $1.22 trillion, according to Dodge Construction Network. Nonresidential building starts fell by 13.4%, residential starts increased 13.3%, and nonbuilding starts dropped 43.7% over the month. On a year-to-date basis through November, total construction starts were up 5.1% from last year. Nonresidential starts were up 4.7%, residential starts were down 4.9% and nonbuilding starts were 17.5% higher over the same period. For the 12 months ending November 2025, total construction starts were up 5.7% from the 12 months ending November 2024. Residential starts were down 3.6%, nonresidential starts grew 4.8%, and nonbuilding starts were up 18.0% over the same period.  

“A lack of megaproject activity contributed to a weak November for construction starts,” stated Eric Gaus, Chief Economist at Dodge Construction Network. “There were only 2 structures over a billion dollars. Looking through the noise of the last two months, the trajectory of the last half of 2025 has been much better than the first half.”  

Residential 

Residential building starts rose by 13.3% in November to a seasonally adjusted annual rate of $368 billion. Single family starts increased 3.1%, while multifamily starts jumped 35.6%. On a year-to-date basis through November, residential starts are down 4.9% – with single family starts down 12.8% and multifamily starts up 12.4%.  

For the 12 months ending November 2025, total residential starts fell 3.6%. Single family starts fell 11.2% compared to the 12 months ending November 2024, and multifamily starts increased 12.4% over the same period.  

The largest multifamily structures to break ground in November were the $391 million Residential Mixed Use, in Seattle, WA, the $228 million Marine Drive Apartments/Parking – Phase 1 in Buffalo, NY and the $224 million Namdar Mixed-Use Residential-Swimming Pool-Parking Phase 2 in Miami, FL.  

Nonresidential 

Nonresidential building starts decreased 13.4% in November to a seasonally adjusted annual rate of $485 billion. Commercial starts were down 25.8%, alongside declines in offices and data centers (-40.5% m/m) and hotels (-33.2% m/m). Meanwhile, parking garages (30.5% m/m), retail stores (8.3% m/m) and warehouses (6.4% m/m) posted growth between October and November. Institutional starts improved  11.4%, driven by gains in public (+78.8% m/m) and education buildings (+32.1% m/m) – but offset by declines in amusement (-51.1.8% m/m) and dormitories (-45.9% m/m). Manufacturing activity remains volatile, falling 50.7% in November. On a year-to-date basis through November, nonresidential starts are up 4.7% compared to the first eleven months of 2024. Commercial and industrial starts are up 11.6% and institutional starts are down 2.0% over the same period. 

For the 12 months ending November 2025, total nonresidential starts were up 4.8% compared to the 12 months ending November 2024. Commercial starts were up 19.9%, institutional starts declined 1.5%, and manufacturing starts were down 13.7% over the same period.  

The largest nonresidential building projects to break ground in November were the $1.8  LAX Terminal 5 Renovation & Reconstruction in Los Angeles, CA., the $800 million Amazon – Southern Site – Data Center in Olive Township, IN, and the $797 million New UCSF Benioff Children’s Hospital Campus in Oakland, CA.  

Nonbuilding  

Nonbuilding construction starts declined 43.7% in November to a seasonally adjusted annual rate of $362 billion. Miscellaneous nonbuilding (-70.4% m/m) drove the declines, along with utilities (-61.4 m/m) and Highway and bridges (-4.9%). Environmental public works starts rose by 6.8% over the month. On a year-to-date basis through November, nonbuilding starts were up 17.5%, alongside gains in miscellaneous nonbuilding (+42.6% m/m), utilities (+49.5%), highways and bridges (+1.7%) while environmental public works declined 1.4%.  

For the 12 months ending November 2025, total nonbuilding starts were up 18.0%. Environmental public works improved by 2.0% compared to the 12 months ending November 2024. Highway and bridge starts were up 2.1%, miscellaneous nonbuilding starts were up 40.6% and utility/gas starts increased 47.8% over the same period.  

The largest nonbuilding projects to break ground in November included the $1.7 billion Entergy Meta Substations – 500kv Line (Sarepta to Mt Olive) in Rayville, LA the $922 million Easley Renewable Energy Solar Array 400MW/650MW BESS in Dester Center, CA and the $900 million The New Castle Bluff Energy Center Natural Gas Power Plant in St Louis, MO.  

Regionally, total construction starts in November rose in the Northeast (+17.9%), and the West (+3.7% m/m). Starts declined in the South Central (-49.2% m/m), Midwest (-7.7% m/m), and the South Atlantic (-8.4% m/m) between October and November.  

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Nonresidential Planning Pipeline Continues to Settle 

BOSTON, MA – December 5, 2025 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, decreased 1.1% in November to 276.8 (2000=100) from the downwardly revised October reading of 280.0. Over the month, commercial planning ticked down 0.1% and institutional planning declined by 3.4%. Year-to-date, the DMI is up 36% from the average reading over the same period in 2024.  

“The influx of high-value data center work, compounded by inflationary cost pressures, continues to support elevated DMI levels,” stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “Overall, nonresidential construction is expected to strengthen in 2027, led primarily by data center and healthcare projects. Other nonresidential sectors are more likely to face softer demand and heightened macroeconomic risks.” 

On the commercial side, activity slowed down for warehouses and hotels, while planning momentum was sustained for data centers, traditional office buildings and retail stores. On the institutional side, education, healthcare, public and recreational planning saw weaker momentum, after strong activity in recent months. Planning for religious buildings, however, continued to accelerate. Year-over-year, the DMI was up 50% when compared to November 2024. The commercial segment was up 57% (+36% when data centers are removed) and the institutional segment was up 37% over the same period.  

A total of 28 projects valued at $100 million or more entered planning throughout November. The largest commercial project included the $406 million Novva Mesa Data Center (Phase 2, 204MW) in Mesa, Arizona, the $317 million Compass Data Center (Buildings 4 & 5) in Hoffman Estates, Illinois, and the Medina Technology Data Center Park in Medina, Texas. The largest institutional projects to enter planning were the $425 million Novi School Renovations in Novi, Michigan, the $250 million James City County Government Complex relocation in Williamsburg, Virginia and the $180 million Police and Fire Administration Headquarters in Mountain View, California.  

The DMI is a monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by a full year to 18 months.  

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Megaproject activity continues to dominate month-over-month growth

BOSTON, MA — November 21, 2025 — Total construction starts were up 21.1% in October to a seasonally adjusted annual rate of $1.53 trillion, according to Dodge Construction Network. Nonresidential building starts rose by 17.9%, residential starts declined 15.4%, and nonbuilding starts expanded 59.4% over the month. On a year-to-date basis through October, total construction starts were up 5.9% from last year. Nonresidential starts were up 5.6%, residential starts were down 5.1% and nonbuilding starts were 19.8% higher over the same period. For the 12 months ending October 2025, total construction starts were up 8.1% from the 12 months ending October 2024. Residential starts were down 3.1%, nonresidential starts increased 7.5%, and nonbuilding starts were up 22.9% over the same period.  

“Growth in construction starts continued to be propped up by high-value megaproject activity last month,” stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “Specifically, ten projects valued at $1 billion and over broke ground, largely within data center, manufacturing and LNG construction. Outside of these high-tech buildings, however, growth appears more moderate. In square footage terms, for example, nonresidential and residential starts declined by 4.3% over the month and are down 5.4% year-to-date through October.”  

Nonbuilding

Nonbuilding construction starts grew 59.4% in October to a seasonally adjusted annual rate of $645 billion. Utilities (+384.5% m/m) drove the surge, along with environmental public works (+18.6% m/m) and miscellaneous nonbuilding (+10.1% m/m). Highway and bridge starts declined by 23.7% over the month. On a year-to-date basis through October, nonbuilding starts were up 19.8%, alongside gains in miscellaneous nonbuilding (+54.0% m/m), utilities (+47.8%), highways and bridges (+4.1%) and environmental public works (+0.6%).  

For the 12 months ending October 2025, total nonbuilding starts were up 22.9%. Environmental public works improved by 11.3% compared to the 12 months ending October 2024. Highway and bridge starts were up 5.6%, miscellaneous nonbuilding starts were up 52.6% and utility/gas starts increased 48.0% over the same period.  

The largest nonbuilding projects to break ground in October included the $15.1 billion Calcasieu Pass LNG Export Terminal and Pipeline in Cameron, Louisiana, the $9 billion Rio Grande LNG Facility (Phase 2, Trains 4 & 5) in Brownsville, Texas and the $5.9 billion Frederick Douglass Tunnel Improvement in Maryland.  

Nonresidential 

Nonresidential building starts increased 17.9% in October to a seasonally adjusted annual rate of $561 billion. Commercial starts were up 19.5%, alongside growth in offices and data centers (+45.5% m/m) and retail stores (+15.1% m/m). Meanwhile, hotels (-19.3% m/m), warehouses (-1.7% m/m) and parking garages (-46.1% m/m) faced declines between September and October. Institutional starts improved 3.7%, driven by gains in other institutional categories (+49.5% m/m) – and offset by declines in education buildings (-20.8% m/m) and healthcare facilities (-2.7% m/m). Manufacturing activity remains volatile, surging 107.2% in October. On a year-to-date basis through October, nonresidential starts are up 5.6% compared to the first ten months of 2024. Commercial and industrial starts are up 13.6% and institutional starts are down 2.2% over the same period.  

For the 12 months ending October 2025, total nonresidential starts were up 7.5% compared to the 12 months ending October 2024. Commercial starts were up 26.9%, institutional starts improved 0.2%, and manufacturing starts were down 16.3% over the same period.  

The largest nonresidential building projects to break ground in October were the $7.5 billion Meta Hyperion Data Center in Richland, Louisiana, the $1.9 billion expansion to the LA Convention Center in Los Angeles, California, and the $1.7 billion Eli Lilly & Co. Manufacturing Facility in Lebanon, Indiana.  

Residential 

Residential building starts declined by 15.4% in October to a seasonally adjusted annual rate of $323 billion. Single-family starts increased 2.2%, while multifamily starts fell back a pronounced 38.5%. On a year-to-date basis through October, residential starts are down 5.1% – with single family starts down 12.3% and multifamily starts up 10.6%.  

For the 12 months ending October 2025, total residential starts fell 3.1%. Single-family starts fell 9.4% compared to the 12 months ending October 2024, and multifamily starts increased 10.3% over the same period.  

The largest multifamily structures to break ground in October were the $214 million Andare Residences in Fort Lauderdale, Florida, the $165 million 6 East 43rd Street Office-to-Residential Conversion in New York, NY and the $132 million Jefferson Bonnie Brae Apartments in Denton, Texas.  

Regionally, total construction starts in October rose in the South Central (+84.9% m/m), Midwest (+18.8% m/m), South Atlantic (+8.7% m/m) and the West (+1.1% m/m). Starts declined in the Northeast by 40.1% between September and October.  

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Nonresidential Planning Activity Levels Off After Recent Surge 

BOSTON, MA – November 7, 2025 — The Dodge Momentum Index (DMI), issued by Dodge Construction Network, decreased 7.1% in October to 283.3 (2000=100) from the upwardly revised reading of 304.8. Over the month, commercial planning declined 2.9% and institutional planning slowed by 15.2%. Year-to-date, the DMI is up 35% from the average reading over the same period in 2024.  

“After several months of record-breaking levels, planning momentum slowed in October,” stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. “Activity remains solid across the board, especially for data centers and hospitals. However, recent growth should not solely be attributed to gains in real activity. Anticipated increases in labor and material costs are also driving up project expenses and are inflating the overall trend in the DMI. In the coming months, Dodge anticipates activity to continue to decelerate on average, especially as macroeconomic risks continue to mount.” 

On the commercial side, activity slowed down for warehouses and hotels, while planning momentum was sustained for data centers, traditional office buildings and retail stores. On the institutional side, education and healthcare planning have slowed down, after strong activity in recent months. Meanwhile, recreational and public planning continued to grow. Year-over-year, the DMI was up 52% when compared to October 2024. The commercial segment was up 54% (+43% when data centers are removed) and the institutional segment was up 49% over the same period. 

A total of 45 projects valued at $100 million or more entered planning throughout October. The largest commercial project included Buildings 1,2, and 3 on the Amazon Data Center Campus in Hamlet, North Carolina – each valued at $500 million dollars. The $500 million CyrusOne Data Center in Talkington Township, Illinois and the $500 million Hut 8 Corp. Data Center in Batavia, Illinois also topped the list. The largest institutional projects to enter planning were the $400 million Scripps Memorial La Jolla Medical Tower III in San Diego, California, the $260 million SW Life Science Park in Philadelphia, Pennsylvania, and the $198 million Mission Hospital Expansion in Asheville, North Carolina. 

The DMI isa monthly measure based on the three-month moving value of nonresidential building projects going into planning, shown to lead construction spending for nonresidential buildings by afull year to 18 months.  

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BOSTON, MA – November 4, 2025 – Dodge Construction Network, in partnership with Procore Technologies, Inc. (NYSE: PCOR), the leading global provider of construction management software, today announced the findings of a new study that measures the value of project management software for construction owners and contractors. The Quantifying the Value of Project Management SmartMarket Brief demonstrates that project management software is an essential tool that creates immediate value, and high user skill and expertise unlocks its full potential to increase operational efficiency and bottom-line impact.

“The construction industry is at an inflection point where realizing the full potential of technology requires more than just implementation. The data shows that investing in technology alone isn’t enough; it must be paired with an investment in people,” said Kris Lengieza, VP, Global Technology Evangelist at Procore. “Optimizing adoption transforms a valuable tool into an engine for margin growth and operational excellence.”

“Across every metric we measured, including cost control, schedule performance, and productivity, organizations with advanced project management software skills delivered measurably better outcomes,” said Donna Laquidara-Carr, Director, Industry Research at Dodge. “The takeaway is not only that technology creates value, but that strong digital competency reliably amplifies it.”

The study, which surveyed more than 1,100 owners and contractors, evaluates project management software usage and the quantifiable benefits experienced across four key categories: improved data gathering and analysis, process improvements, better project performance, and increased business benefits. Respondents were categorized across an expertise spectrum, from light users to highly skilled, innovative adopters.

Creating Immediate Benefits for All Adopters

All organizations, even those with lower adoption levels, report immediate, tangible improvements:

• The majority of light adopters and users proficient in only basic features at both owner and contractor organizations report immediate improvements in data gathering and data quality, including increased accuracy, more actionable data, and reduced errors from miscommunication or outdated information.
• More than 50% also experience improved communication and collaboration, partly due to the ability to share more reliable data.
• Over 70% of owners are able to handle more construction volume, while more than half of contractors see improved productivity and operational efficiency.

Driving Greater Benefits Among Higher Skilled Users 

The research clearly demonstrates a powerful correlation – having greater project management software skills consistently delivers greater benefits. The extent of these gains is striking.

• On average, more than 80% of respondents at the top of the expertise spectrum experience benefits across all four major categories.
• In contrast, respondents at the lower end of the expertise spectrum range from 31% to 66% benefit realization, depending on the category.

Improving Bottom-Line Impact

Adopters that are highly skilled not only experience a higher number of benefits but also realize a stronger return on investment.

• 83% report that overhead costs are reduced by 5% or more.
• 77% report increased profit margins, with a median increase of 4 points.
• 77% see productivity gains for their leadership/executive teams, while 69% see gains for their project management/operations and finance teams.
• 76% report that project delays are reduced by 5 days or more on average.

Delivering Increased Efficiency and Performance for Owners

The study also reveals enhanced benefits for owners with high expertise, specifically impacting capital efficiency and overall project performance. These owners report major improvements, including:

• 90% agree the software has enabled their teams to manage more capital projects.
• 88% believe their projects now meet or exceed quality benchmarks.
• 83% have experienced improved cash flow.
• 83% have seen a noticeable reduction in project delays.

Read Quantifying the Value of Project Management SmartMarket Brief to get more detailed information on the results.

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