Hey crew,

Construction spending dipped to start 2026 — but that doesn't mean opportunity dried up. Tennessee's handing out school contracts, Texas is speeding up permits, and if you're not registered for federal work yet, you're leaving money on the table. Let's break it all down. 👇

Construction spending hit $2.19 trillion at a seasonally adjusted annual rate in January 2026, down 0.3% from December according to new Census Bureau data. That's a concerning start to the year after data centers failed to boost overall spending as expected. Private nonresidential construction has now slowed for four straight months despite increased data center investment. This softening could signal tighter margins and fewer opportunities ahead, especially for contractors relying on commercial work.

Look to diversifying into profitable industries like healthcare and education.

Merit Construction won a major school construction contract with completion anticipated in 2029 and student occupancy by August 2029. Construction is scheduled to begin in 2026, marking a significant multi-year project opportunity. The Tennessee school system voted unanimously to award the bid, showing strong confidence in Merit's proposal. While specific dollar amounts weren't disclosed, multi-year school projects typically range from $50-200 million depending on size and scope.

Takeaway: School districts are still investing heavily in new facilities — a stable revenue stream for contractors with K-12 experience.

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Texas cities must now review residential and commercial building permits within 45 days by law. This applies to all permit applications and can significantly speed up your project timelines compared to the old system. Smart contractors are using this to their advantage by promising clients faster starts and building the quicker approval time into their project schedules. If a city takes longer than 45 days, you have legal grounds to push for expedited processing.

Takeaway: Build the 45-day timeline into your project proposals and use it as a competitive advantage when bidding against out-of-state contractors who don't know the rule.

Every federal construction project over $25,000 gets posted on SAM.gov , but you can't even see the details without being registered. You need a UEI number just to access the site where opportunities are posted.

In 2022, the Duns and Bradstreet (DUNS) number was phased out and replaced with SAM’s own Unique Entity Identifier (UEI). Obtaining that UEI is part of the process of registering in SAM, so you don’t “need” a UEI as you automatically receive one when you register for the first time.

If you are unsure if you have a UEI, go here and get registered, the system will also let you know if you were previously registered and will provide you next steps.

Note: registration is FREE, ensure you are always registering on a government (.gov) website.