{"id":35689,"date":"2026-06-09T05:57:14","date_gmt":"2026-06-09T12:57:14","guid":{"rendered":"https:\/\/essential.construction\/news\/industrial-sector-sole-bright-spot-in-minneapolis-region-survey\/"},"modified":"2026-06-09T05:57:14","modified_gmt":"2026-06-09T12:57:14","slug":"industrial-sector-sole-bright-spot-in-minneapolis-region-survey","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/industrial-sector-sole-bright-spot-in-minneapolis-region-survey\/","title":{"rendered":"Industrial sector sole bright spot in Minneapolis region: survey"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?313321260226\" alt=\"-\"><br \/>\n        Listen to the article<\/p>\n<p>            <span class=\"text-to-speech__button__audio-length\">3 min<\/span><\/p>\n<p>    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/822287\/2026-06-08_16.07.01\/industrial-minneapolis-fed-construction-survey-data-economy.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Brief:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<ul>\n<li><span><span><span><span><span><span>Construction activity in the greater Twin Cities area declined this spring, with 54% of surveyed firms reporting lower activity than a year ago, compared to 23% reporting increases, per the Federal Reserve Bank of Minneapolis.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Economic uncertainty remains a key concern for contractors. Respondents to the bank\u2019s survey described a \u201cstop and go\u201d environment in which projects are being delayed, paused or reconsidered, said Erick Garcia Luna, regional outreach director for the Minneapolis Fed, during a June 5 webinar.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>However, momentum from data center construction offered a bright spot.\u00a0\u201cIndustrial construction appears to be holding up in the district and the country,\u201d Garcia Luna said. \u201cBroadly, investment in data center and adjacent infrastructure is keeping activity strong in that part of the sector.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Dive Insight:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>The survey found residential and commercial construction experienced the sharpest declines, while industrial and infrastructure work continued to provide pockets of strength within the region.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Based on Census construction data, \u201cactivity has flattened since mid-2024, and declined slightly since the end of 2024,\u201d Garcia Luna said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The survey collected responses from 204 construction firms across the Fed\u2019s Ninth District, which includes Minnesota, Montana, North Dakota, South Dakota, northwestern Wisconsin and Michigan\u2019s Upper Peninsula. A majority of respondents reported declining activity compared with a year earlier, reflecting weaker demand and a more cautious project environment.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cConstruction companies continued to bear the effects of uncertainty and an evolving economic environment,\u201d Garcia Luna said. \u201cResidential and commercial construction drove overall activity downward.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Survey respondents pointed to several factors behind the slowdown, with competition for a shrinking number of projects emerging as the industry&#8217;s top concern. Garcia Luna said some owners are delaying investment decisions, leaving contractors to compete for fewer opportunities.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/april-construction-job-openings-labor-shortage-data\/821840\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>Finding enough workers<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> also remains a persistent challenge across the district, even as overall activity softens, Garcia Luna added.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cLabor availability continues to be the story of the region,\u201d he said. \u201cCompanies just struggling to secure the labor that they need in order to remain competitive.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The survey also found that smaller and mid-sized firms are feeling the greatest pressure. While larger companies reported some growth in activity, respondents from smaller firms were more likely to report declining workloads as competition intensified and project pipelines narrowed.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Respondents also cited state and local regulations, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/steel-imports-down-30-percent-ytd-tariffs-bolster-us-production\/822123\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>rising material costs and tariff-related<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> uncertainty as factors affecting project planning and investment decisions. Those pressures have contributed to declining backlogs and fewer requests for proposals, particularly in the residential and commercial sectors, according to Garcia Luna.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Survey respondents reported continued pressure from material and transportation expenses as well, with many firms unable to fully pass those costs on to customers.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Despite the weaker conditions, some areas of the market remain active. North Dakota stood out as an exception within the district, benefiting from infrastructure investments and data center development.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Looking ahead, contractors expressed cautious optimism that conditions may stabilize over the next six months, although respondents continue to expect pressure on project backlogs, pricing and margins.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/industrial-minneapolis-fed-construction-survey-data-economy\/822287\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 3 min This audio is auto-generated. Please let us know if you have feedback. Dive &#8230; <a title=\"Industrial sector sole bright spot in Minneapolis region: survey\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/industrial-sector-sole-bright-spot-in-minneapolis-region-survey\/\" aria-label=\"Read more about Industrial sector sole bright spot in Minneapolis region: survey\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-35689","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/35689","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=35689"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/35689\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=35689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=35689"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=35689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}