As far as the leading figures go, results from the 2026 CBIZ Construction Survey paint the picture of an enviable construction sector in the Western U.S. It is the only region in which every respondent reported annual revenues of more than $1 million and had the highest rate of organizations earning more than $1 billion per year (19 percent) by far.
Beneath the positive revenue figures though, there are a few areas of clear concern emerging. Twenty-nine percent of respondents reported backlogs decreasing by 15 percent or more — the highest rate of decline recorded — with another 10 percent reporting declines of less than 15 percent. It is the region in which financing was perceived to be hardest to secure, with loans and credit deemed “harder to get” by 31 percent. It was also the only geographical area in which 0 percent reported financing was “easier to get.” With high levels of revenue alongside backlog concerns and tight financing, it makes sense that construction leaders in the Western U.S. reported “operational efficiency” as their highest strategic priority.
While only 10 percent of Western construction firms reported that they have “no current plans to invest in AI,” they are, on the whole, taking things slow. Only 33 percent of respondents are in the pre-implementation stage of AI adoption. The technology-dominate West lags behind the Midwest as the region leading in AI adoption (with 34 percent of Midwest firms reporting AI-enabled pilots in process). Perhaps the region is just being cautious and taking a sophisticated approach to AI — ensuring data practices, strong governance, and clear strategy are entrenched before implementing AI.
Every region except the Midwest reported “lack of work or project cancellations” as the single greatest threat to their firm over the next 12 months. But no region reported that concern at a higher rate than the West (43 percent). Notably, it was also the only region in which the second greatest threat was identified as “government regulations and trade policy” (19 percent).
On the bright side, it appears that Western-based construction businesses have ample opportunities to accomplish their top strategic priority of increasing efficiency by more fully embracing the advantages of AI. That will further strengthen a foundation featuring high revenues that are already well ahead of the national industry. Growth over the year ahead, however, remains an open question with construction facing headwinds in the form of tight financing, concerns about an accelerating market downturn, and high regulatory hurdles. With operational efficiency in focus, it might be a good time to revisit key performance indicators and build out operational practices that best support strong financial performance.
