US Industrial Technology & Mobility: Takeaways from Construction Economist Call

Research evidence excerpt

US Industrial Technology & Mobility: Takeaways from Construction Economist Call

US Industrial Technology & Mobility

02 July 2026 Citi Research

2H ’27), and that it will become increasingly difficult to raise funding with current

US debt levels, pressuring State DOTs. While Construction Materials producers

have indicated the BUILD 250 proposal is a net positive (certainty of project

funding, additional income for HTF), the bill’s funding is down from IIJA when

adjusting for inflation (although the Senate could potentially upsize the House

draft). Turning to private construction, Mr. Simonson echoed sentiment around

continued strength in data center construction, although he believes elevated

construction costs may pressure activity in 2H (expecting materials & labor costs

both +LSD/MSD% Y/Y).

US Multi/E&C Takeaways -- Pockets of strength in domestic construction markets

led by data center activity, but also in areas such as electric power and select

manufacturing end markets we think remain supportive of positive momentum for

a relatively broad range of companies in our coverage universe, including Specialty

Contractors such as PWR and MTZ as well as favored Multis with exposure to these

end markets such as PH, ETN, VRT, EMR, TT and HON. Notably, despite relatively

modest overall construction spending growth reflected in recent Census Bureau

Data, AGC’s Ken Simonson did note an expectation for continued DD growth in

data center construction spend that we think could remain an ongoing tailwind.

Additionally, positive momentum in select manufacturing markets such as power,

defense, and pharma we think could be relatively durable growth drivers and

supportive of some “broadening” of growth for Multis. Still sluggish resi new