Industry Signals
Construction is heading into 2026 with pressure coming from every direction — rising costs, shifting regulations, and tighter labor conditions. In the latest outlook on 2026 construction headwinds, the theme is clear: teams will be asked to deliver more certainty with fewer resources. That strain is only compounded by the data center boom driving workforce shortages — and by the fact that the industry is still catching up on how to operationalize AI beyond experimentation (including Caterpillar partnering with NVIDIA).
Compliance Watch
Accountability is tightening — and not just in theory. We’re seeing increasing consequences when owners, agencies, and the public lose confidence in oversight, like this case involving a two-year ban for contractors tied to major project failures. At the same time, new frameworks are being built to standardize responsibilities, as seen in the UK’s push for clearer accountability under the Building Safety Act. And in the US, ongoing program uncertainty continues to affect participation and compliance workflows — including VDOT pausing minority and women-owned program activity amid federal changes.
Tough Leaf News
This month, Tough Leaf launched ClearSource — a faster, simpler way for GCs to source and verify certified subcontractors (without living in spreadsheets). If you’re in NYC, we’d love to see you at our Sourcing & Compliance event on Feb 11 — and if you can’t make it in person, we’re running the same session virtually on March 18. We’re also mapping our 2026 travel schedule — if you want Tough Leaf to come to your team, tell us where to stop.
Partner Updates: Heartland has officially rebranded to Auris — and they’ve expanded beyond payroll to help subcontractors handle broader HR needs. We’re also excited to welcome WithCoverage as our newest capacity-building partner, modernizing construction insurance and bringing a much-needed refresh to how coverage is sourced, structured, and managed.
Projects Worth Noting
Several projects worth watching are reinforcing where momentum is heading in 2026: large-scale reinvestment, high scrutiny, and continued infrastructure demand. In Florida, construction has restarted at the long-stalled Surfside site — a highly visible build where accountability will be watched closely. In the tech manufacturing world, Micron is moving forward with its megafab, while data centers continue expanding footprint across the country, including a new Arkansas campus and Microsoft’s push toward “water zero” operations in West Des Moines.
What We’re Reading
If there’s one consistent theme, it’s this: the industry can’t scale or defend outcomes without better systems underneath it. Procore’s move to strengthen AI capabilities through its Datagrid acquisition reflects how quickly major platforms are shifting toward automation and connected workflows. That’s paired with a growing recognition that labor challenges won’t be solved by hiring alone — outlined in Autodesk’s take on technology closing the talent gap — and reinforced by the reminder that none of this works without clean inputs, as argued in this piece on prioritizing data quality in 2026.
Continue the Conversation
If you want to compare notes on sourcing strategy, participation tracking, or compliance reporting — we’d love to connect. Join us in person in NYC on Feb 11, attend virtually on March 18, or request a city stop and we’ll reach out.