Key Takeaways
- AI adoption is outpacing results. In our latest research report, 84% of respondents use general-purpose AI, but only 8% report significant measurable value from AI investments.
- Construction organizations are consolidating their technology. Fifty-eight percent are reducing the number of systems they use, while just 2% plan to add standalone tools.
- Capital programs are increasingly complex. Ninety-four percent of respondents manage six or more projects simultaneously, making portfolio-wide visibility essential.
- Connected data is still a challenge. Only 4% of respondents have fully connected systems, limiting their ability to make timely decisions and get more value from AI.
Construction industry trends come and go, but some problems seem to stick around. Labor shortages, rising costs and disconnected systems continue to challenge owners and contractors. And now there’s AI to consider.
“Just 8% say they get significant measurable value from their AI investments.”
According to Kahua’s 2026 Capital Program Maturity Report, researched by Verdantix, 84% of surveyed organizations use general-purpose AI, yet only 8% report significant measurable value from their AI investments.
The findings point to a broader issue: Organizations are investing in technology faster than they’re connecting the people, processes and data needed to make it useful.
Here are eight construction industry trends shaping 2026 and what they mean for owners and general contractors.
1. Spreadsheet Sprawl
Most large organizations have some kind of software in place to track capital planning at the corporate level; but for many, the day-to-day tracking of budgets and project tracking still live in spreadsheets, where info must be entered manually and version control is a big problem.
2026 Industry Trend:
Organizations are moving toward shared dashboards and common data environments instead of one-off spreadsheets. But there’s still a long way to go.
“48% still have to move data manually between tools.”
Kahua’s 2026 research found that only 4% of organizations operate with fully connected systems. Another 48% have mostly connected systems, while 48% still rely heavily on manually moving data between tools.
For owners, better-connected data means more reliable portfolio forecasts and earlier visibility into potential problems.
GCs will also be able to improve financial tracking and spot trends using historical data to root out inefficiencies, like using a vendor for multiple projects who is consistently late. Dashboards and CDEs also give field teams the mobile tools they need to work quickly.
Read it: Ready or Not: 7 Ways to Format Construction Spreadsheet Data for AI in 2026
2. Email-as-a-Process
Does this sound familiar? You have hundreds or thousands of emails in your inbox with submittals, RFIs, invoices and approvals. When you respond to one, it starts a chain reaction of replies as people CC other approvers, start one-off threads and add PDF attachments.
Enough with the emails, already!
2026 Industry Trend
Structured communication and digital approval workflows are becoming more common, giving teams clearer audit trails and better ways to collaborate between the field and office.
There’s also a growing emphasis on structured data. Information buried in emails, chat logs and PDF attachments is difficult to track and analyze, particularly when organizations want to use AI to find answers or automate routine tasks.
Program owners will gain the obvious benefit of not missing approvals or change orders buried in an inbox; they will also see improved accountability and documentation for compliance audits and funding oversight.
GCs will see the benefit of faster submittal and RFI turnaround times, and more consistent documentation among subcontractors.
3. Cash-Flow Pressure
Do your cashflow ins and outs match your planned budget and burndown chart? As difficult as this is to track at the project level, it’s even harder to balance expense projections and funding from multiple sources to the program level.
2026 Industry Trend
In the coming year, we think there will be increased scrutiny on portfolio-level forecasting. And with that, we anticipate greater integration between financial planning and project delivery data.
According to Kahua’s proprietary 2026 research, 76% of respondents identified weak connections between construction execution and cost, schedule and project controls as one of their three biggest data gaps. These disconnects make it harder to spot budget and schedule risks early.
AI and predictive analytics may eventually help organizations forecast spending more accurately, but reliable results depend on having connected, trustworthy data in the first place.
Owners can benefit from clearer long-term funding outlooks for boards and leadership. This will be especially important as disruption from global tariffs and conflict is likely to continue roiling manufacturing supply chains, materials prices and the U.S. economy in general.
GCs can look forward to more accurate estimating, resource planning and earlier visibility into potential cost overruns.
4. Inconsistent Practices Across PMs
Every construction project manager wants things to be done in a certain way.
The problem arises when project managers in a complex organization, working on different teams and projects, do not often use the same systems, processes or even the same technology as their fellow PMs.
2026 Industry Trend
Organizations are placing greater emphasis on standardized workflows across departments and simpler technology that teams will actually use.
Kahua’s research found that 58% of organizations are in the process of consolidating systems. Standardization is an important part of that effort, especially for organizations managing dozens or even hundreds of projects.
At the same time, organizations need enough flexibility to accommodate different project requirements without every PM inventing a new process.
Owners can benefit from more consistent tech processes because the related project governance and documentation are more predictable. This will also reduce friction when projects change hands between departments or PMs.
GCs may see greater consistency in field reporting and faster, easier training for subcontractors and employees using field/mobile tools.
5. Organizational Silos
It’s not just PMs who like things done their way. The problem described in #4 above is multiplied when departments operate in silos and lack systematic visibility. Schedules, contractors, budgets, timelines and profit are all at risk.
“94% of respondents oversee six or more projects simultaneously.”
2026 Industry Trend
We’ve all heard the “siloed data” talk; now it’s time to walk the walk. In 2026, we think cross-department data sharing will be expected and required more frequently: table stakes for large organizations.
Kahua’s 2026 research found that 94% of respondents oversee six or more projects simultaneously, while 28% manage more than $1 billion in annual construction value. At that scale, disconnected departments and project-by-project reporting make it difficult to see the full picture.
Organizations are increasingly looking to connect construction, engineering, finance and operations through shared data and more consistent reporting.
In owner-led organizations, leadership teams will gain insight into their entire capital portfolio, which will ultimately lead to better long-term strategies. They will also be able to reduce redundant spending and better coordinate complex infrastructure.
GCs will be able to schedule work more reliably and see better coordination between field, engineering and project teams.
Get the 2026 Capital Program Maturity Report now.
6. Manual Cashflow Management
Is your finance and accounting team struggling to keep up? Entering invoice information manually, sending invoices via email, coding and re-entering information into the accounting system is very error-prone and slows down approvals and payment.
2026 Industry Trend
Your A/P team may get lucky in 2026: We’ve already observed a growing interest in automated coding and routing practices—and we expect more choices and better use of digital invoice intake methods.
Automated invoice coding, routing and digital intake are helping organizations reduce manual work and improve communication between project documentation and financial systems.
AI is also beginning to play a role in these workflows. Kahua’s research found that 28% of respondents have deployed AI-powered workflow and process automation at one or more sites, although broader adoption is still limited.
For owners, better accounting automation will result in accurate, up-to-date visibility into overall capital spending and project health; not to mention more efficient data entry and fewer accounting errors.
The benefit to GCs may be even greater, in terms of faster payment cycles and less need to assume the financial burden of the project while you (and your subs) wait for payment. Contractors should also see more accurate job cost records with less manual reconciliation.
7. Customization Fatigue
Legacy in-house software systems, and even some low-code tools, require constant custom development and are hard (read: expensive and take forever) to update.
2026 Industry Trend
Organizations are looking for construction management platforms that are easier to configure, integrate and maintain. In Kahua’s 2026 research, 48% of respondents rated configurability, scalability and ease of use as critical software selection criteria, while 40% said the same about interoperability.
The trend toward consolidation is also changing buying decisions. Rather than adding another specialized tool for every problem, organizations increasingly want platforms that can accommodate different workflows without creating more disconnected data.
That means fewer IT tickets, faster updates and the ability to adapt workflows as regulations or project requirements change.
This ain’t your grandma’s software customization.
Project owners will be less dependent on custom scripts or the IT ticket backlog. Additionally, systems and processes will have greater longevity because they can be more easily updated on an ongoing basis.
GCs will be able to lighten up on the training for field employees and subs and will experience less downtime when internal experts aren’t available.
8. Project Handover
Every organization thinks long and hard about the project, beginning to end. But the critical project handover to operations and maintenance—or to the owner, if you’re a GC—tends to get much less consideration, even though it is arguably the most important step in construction!
Warranties, model numbers, manufacturer specs, operating and emergency procedures, asset locations: All of this critical data is often collected inconsistently, or not at all, during construction.
Finding this information takes 6-12 months on average and can delay operations significantly.
2026 Industry Trend
Kahua has built its reputation on asset centric project management, the industry is placing greater emphasis on collecting structured asset information throughout the construction lifecycle.
Kahua’s 2026 research found that 82% of respondents consider integrated handover from construction into operations a high or critical priority for the next three to five years.
That means collecting and linking data to assets throughout design and construction, rather than assembling everything at the end.
Asset information can then be shared with related systems such as BIM, computerized maintenance management systems and enterprise resource planning software.
Owners will see lower lifecycle costs, since they can give O&M teams everything they need to be operational on day one. They will also save time and heartache by skipping the “project after the project”
GCs will get the benefit of a better owner relationship with a cleaner, more complete closeout. Even better, they’ll field fewer calls after closeout, because the owner will have everything they need to reference in a consistent, logical format.
Many advances in technology still seem like science fiction today, and as far away as Mars; but it’s comforting to remember that our more immediate future is also getting better all the time: in terms of efficiency, communication, collaboration and our day-to-day work.
Whatever else 2026 may bring, we predict that the construction industry will be at the forefront, and we’ll pave the path together.
Get your copy of the 2026 Capital Program Maturity Report.
Construction Industry Trends FAQ
What are the top three trends in the construction industry in 2026?
Three major construction industry trends in 2026 are AI adoption, technology consolidation and the shift toward portfolio-level management. Organizations are investing in AI to improve productivity, reducing disconnected software systems and looking for better visibility across multiple projects. Labor availability, costs and sustainability also remain important industry concerns.
Is construction slowing down in 2026?
Construction activity varies considerably by sector and region. Some markets face pressure from financing costs, labor shortages and uncertain demand, while areas such as data centers, energy infrastructure and advanced manufacturing continue to attract investment. Owners and contractors should evaluate conditions in their specific markets rather than relying on a single industry-wide outlook.
What are the current trends in new construction?
Current trends include greater use of prefabrication and modular construction, digital project management, reality capture and AI-assisted workflows. Owners and contractors are also paying closer attention to building performance, material costs and sustainability requirements. These approaches can help improve coordination, reduce rework and make construction processes more predictable.
What is the future of the construction industry?
The construction industry is moving toward more connected, data-driven project delivery. Organizations are increasingly using integrated platforms to manage costs, schedules, documents and assets across the construction lifecycle. AI is expected to play a growing role in forecasting, automation and decision support, although its effectiveness will depend on the quality of the underlying data.
What are the biggest construction management trends right now?
Construction management trends in 2026 include technology consolidation, standardized workflows, portfolio-level reporting and better integration between construction and operations. Kahua’s 2026 research found that 58% of surveyed organizations are actively consolidating their systems, reflecting growing demand for connected platforms that can support multiple projects and departments.
How is AI being used in construction management in 2026?
AI is being used for document search, information retrieval, reporting, workflow automation and early risk identification. According to Kahua’s 2026 research, 48% of respondents have deployed AI-powered document processing and retrieval at one or more sites. More advanced applications, such as predictive forecasting and automated design review, remain largely in pilot or evaluation stages.