North Carolina Construction News staff writer
The civil infrastructure market is holding steady but showing signs of slowing
as it closes out 2025, according to a new report from Raleigh-based consulting and investment banking firm FMI.
The Q4 2025 Civil Infrastructure Construction Index (CICI) released by FMI—which maintains an office in Tampa—dropped slightly to 50.6 from 50.8 in the previous quarter. The score suggests a “late-cycle economy” where growth is steady but no longer accelerating.50—indicating slight expansion—it signals a market where opportunities for acceleration are narrowing.
Despite the national moderation, the outlook for the region remains comparatively strong.
According to the report, 28% of surveyed firms have identified the South Atlantic region as a primary target for growth in the near term, making it the second most targeted geography in the country behind the Pacific region. “The headline reading near neutral underscores that most firms are maintaining consistent workloads, but opportunities for acceleration are narrowing,” write report authors Brian Moore, Emily Beardall, and Brian Strawberry.
Key findings from the Raleigh firm’s report include:
- Public vs. Private Divergence: Public infrastructure activity is sustaining the market as
private development softens. Contractors report solid backlogs increasingly tied to federally
funded projects, particularly in highway and utility sectors. - Cost Pressures: Inflation has moderated from post-pandemic peaks, but 46% of
contractors still reported rising labor costs in the third quarter. - Strategic Caution: Firms are prioritizing execution efficiency and capacity over aggressive
expansion. FMI forecasts a modest 1% decline in total construction spending for 2025
following a rebound in 2024.
Contractors in the region appear focused on organic growth, with 56% of survey respondents indicating they currently operate in the South.