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Dodge Construction Network and CMiC survey finds firms tightening bids, rethinking growth as costs rise and demand softens
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Toronto, June 08, 2026 (GLOBE NEWSWIRE) — A new survey of U.S. contractors conducted by Dodge Construction Network in partnership with CMiC, a leading construction ERP platform, reveals widespread concern over the impact of policy changes on both costs and project demand. As uncertainty grows, firms are becoming more selective in bidding, tightening contract terms and prioritizing margin-focused growth strategies. Tariffs are already affecting the industry, with 91 per cent of contractors reporting cost increases, and many expect further disruption as government policies continue to evolve.
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As pressures mount, contractors are increasingly turning to technology to maintain efficiency and profitability. Among firms adopting AI-enabled tools, reported effectiveness gains range from 50 per cent to 100 per cent over previous methods. Automated proposal generation is rated 92per cent effective, contract risk review 86 per cent, and progress tracking using site photos 92 per cent, marking a shift from incremental improvement to measurable performance gains.
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“Construction firms today are operating in a far more complex and constrained environment, where the margin for error continues to shrink,” said Gord Rawlins, President and CEO of CMiC. “With tariffs impacting 91per cent of contractors and project pipelines slowing, financial visibility and operational agility are no longer optional and they are essential. At the same time, only a fraction of firms are fully leveraging technology, which represents a major gap. As AI continues to reshape how construction projects are delivered, CMiC remain committed to providing technology that keeps pace with industry demands, both within the US and globally.”
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Key findings include:
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- 84 per cent of contractors cite aggressive pricing competition as a major challenge, while 62 per cent report increasingly unfavorable contract terms as risk shifts downstream.
- 65 per cent report schedule impacts due to skilled labour shortages, and 76 per cent identify retirements as a key driver of workforce attrition.
- 91 per cent report tariff-related cost impacts, and an average of 72 per cent expect negative effects from policy changes.
- 84 per cent expect inflation to reduce overall construction volume in 2026.
- More than 80 per cent report compressed schedules and post-bid cost increases, 72 per cent cite rising project complexity, and 67 per cent face material availability challenges.
- While AI tools deliver strong results, only about one-third of contractors are aware of these capabilities, and adoption remains significantly lower.
- Despite challenges, 74 per cent of contractors say they are optimistic about their company’s performance in 2026.
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The findings highlight a persistent gap between awareness and adoption of AI, driven by barriers such as limited understanding, access and resources. They also underscore the growing importance of unified, high-quality data to support more predictive, data-driven decision-making.
English (US)