The Texas Construction News staff writer
AUSTIN — Central Texas contractors enter the second half of 2026 with expanding project backlogs, though severe shortages of skilled trade workers and elevated financing costs continue to challenge project delivery, according to a midyear report from Associated Builders and Contractors (ABC) Central Texas.
In midyear industry surveys, 51% of regional contractors reported expanding project backlogs, up from 40% earlier in the year. Construction activity along the Interstate 35 corridor stretching from Austin to San Antonio remains robust, propelled by large-scale projects in:
- Artificial intelligence infrastructure and hyperscale data centers
- Semiconductor manufacturing facilities
- Regional healthcare facilities and public infrastructure projects, including TxDOT’s ongoing multi-billion-dollar highway programs
Despite high project demand, contractors report that labor availability is their primary operational bottleneck. With the state’s construction unemployment rate holding near 3%, firms face intense competition for specialized craft trades, including electricians, plumbers, HVAC technicians, and concrete workers.
ABC Central Texas emphasized that registered apprenticeship programs and skilled trade certifications remain essential strategies for contractors working to expand capacity while protecting project margins.
