Infrastructure sector stabilizes as contractors eye South Atlantic for expansion: FMI Report

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Florida Construction News staff writer

As the 2025 construction year concludes, the civil infrastructure market is stabilizing, with significant industry attention turning toward the South Atlantic region for future growth, according to the latest data from FMI.

The Q4 2025 Civil Infrastructure Construction Index (CICI) released by FMI—which maintains an office in Tampa—dropped slightly to 50.6 from 50.8 in the previous quarter. The score suggests a “late-cycle economy” where growth is steady but no longer accelerating.

However, Florida and the broader South Atlantic region remain a bright spot for strategic investment. The report indicates that 28% of construction firms plan to target the South Atlantic for geographic expansion in the near term.

“Contractors continue to express measured confidence, particularly in the infrastructure and utility sectors, even as private development softens further,” the report states.

The data highlights a shift toward public works, which is critical for Florida contractors dealing with fluctuating private market demand:

  • Sector Strength: Highway and bridge work remains the dominant sector, with 81% of respondents involved in this segment. Public utilities also remain strong, involving 53% of respondents.
  • Labor Challenges: Skilled craft availability remains tight, particularly in transportation and heavy civil sectors, forcing firms to absorb wage escalation.
  • Growth Outlook: Infrastructure funding continues to offset declines in residential and commercial site development.

FMI’s forecast predicts a shift from growth to “maintenance and delivery execution” for the industry heading into 2026.

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