What is the new normal for the Building Industry in 2026?
We’ve been on the road quite a bit recently — attending the International Builders’ Show and Kitchen & Bath Industry Show in Orlando, as well as World of Concrete and the International Roofing Expo in Las Vegas.
We attend these shows for many reasons: to connect with clients, stay current on product innovations, and to keep a pulse on where the industry is headed.
But most importantly, we go because we genuinely love what we do and the people we serve — and a big part of that is making sure we truly understand the markets we serve.
One of the questions the TZR team has been discussing is, as we continue to move past tariff curveballs, with construction trends changing, and interest rates fluctuating, what does “normal” look like now?
Teams, including ours, need to consider:
- What current market conditions must leaders account for — and what systems, structures, and capabilities are needed to navigate and manage effectively going forward?
- How are you tracking consistency versus major growth – what does a sustainable business look like in 2026?
How industry trends are redefining talent needs
At TZR, our business is knowing your business. We’ve previously talked about how, in the recruiting world, the past few years have been defined by constant analysis and adaptation to a landscape that refuses to stand still. And, unsurprisingly, the evolution isn’t over.
With budgets tightening amid economic pressures and tariffs, it’s critical to ensure every “seat” is occupied by someone who can deliver real impact. As companies do more with less, workloads rise, and results are demanded.
Sometimes, when a company is making a lot of money, it can overlook or tolerate poor performance by some employees. “Given the current economic dip, companies can no longer afford to turn a blind eye to ineffectiveness and are seeking impact players in every role. TZR’s track record of helping companies maximize team performance is key to driving results in strategic roles that directly impact top-line revenue,” says Mark Fisher, TZR president.
One of the most significant — and rapid — shifts has been the rise of skills-based hiring: prioritizing what a candidate can demonstrably do, shaped by real-world work and life experience, rather than relying solely on formal education or degrees as the primary qualifier.
The Associated Builders and Contractors notes, “The construction industry needs to attract an estimated 349,000 net new workers in 2026 to meet demand for construction services, according to a proprietary model developed and released today by Associated Builders and Contractors. In 2027, the industry will need to bring in 456,000 new workers to meet demand as construction spending growth is poised to resume for the first time in years.”
Here are some key takeaways to keep in mind according to Construct Connect:
- Reconstruction projects, including office-to-residential conversions, are growing in importance.
- Data centers and megaprojects will continue to dominate, but questions remain about their long-term sustainability.
- Firms must focus on cost control and strategic bidding to protect profit margins in a challenging environment.
What baseline are you using to define your ‘new normal’?
True may sum it up best, stating: “Wins won’t come from a booming market. They’ll come from execution, clear positioning, strong relationships, and standing out. This reflects a key building products industry trend: growth through focus, not volume.”
Dispatch from the field
In nearly every conversation we had on the road with hiring executives, one theme was consistent: the demand for talent remains strong. “It is more important than ever to have the right people in the right position who really impact a company’s bottom line,” reflects Mark Fisher at TZR.
Leaders agree that candidates who bring industry knowledge — and the ability to navigate its unique dynamics — stand well above the “average” applicant.
While each booth showcased new products, it was actually innovation that was on full display. Across the floor and in every conversation, there was a palpable sense of energy and optimism, with most exhibitors expressing confidence about slow to moderate growth.
We’re energized about the year ahead and the opportunity to grow alongside you. When you’re ready to take the next step, we’re ready to get started. Reach out anytime.
