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Things are looking up in 2025, according to New Jersey Alliance for Action, which projects increased local construction spending in the next two-year cycle.

NJAA’s 40th Annual Construction Forecast, held Nov. 7 at Forsgate Country Club in Monroe, anticipates $57.6 billion in building spend in 2025 and 2026. The figure marks a 5.17% increase over the previous two-year outlook.

Held each year, the NJAA event offers a preview of upcoming projects from public agencies and private industry within the state. Speakers for the 2024 symposium included representatives from New Jersey Turnpike Authority, NAIOP New Jersey, NJ Transit, The Port Authority of New York & New Jersey, Rutgers University, South Jersey Transportation Authority and others.

At $15.5 billion over the next two years, the state’s utilities (water, sewer, gas and electric) announced the largest projected spend on capital infrastructure over the covered period.

According to NJAA, other anticipated big spenders for 2025-2026 include:

• New Jersey hospitals – about $4.4 billion in construction
• New Jersey Department of Environmental Protection – $5.6 billion in projects
• PANYNJ – nearly $4.2 billion for aviation, tunnels, bridges, terminals, ports and PATH improvements
• New Jersey Department of Transportation – $2.2 billion on bridge and pavement projects
• New Jersey Schools Development Authority – about $500 million in construction costs in each year

“These numbers represent significant growth and optimism for New Jersey’s construction industry, which means great news for the entire state,” said Alliance for Action President Jerry Keenan. “The jobs and economic opportunities created by construction improve the lives of everyone in our state.”

In its 2025 Engineering and Construction Industry Outlook, Deloitte agreed there was reason for optimism for construction firms moving into the new year.

“[C]onstruction investment, largely driven by government investments, and an expected decrease in interest rates may provide relief to the industry over the next few quarters,” the report, published earlier this week, ahead of the Federal Reserve’s latest cut, asserts.

Improving economic conditions will likely influence demand in various segments, according to Deloitte.

“Declining mortgage rates could boost demand and residential construction activity. Government investments through the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act may continue to drive growth in segments such as manufacturing and energy,” the report states.

“Moreover, with the increasing uptake of artificial intelligence and advanced computing across industries, data center construction is also likely to gain steam,” it adds.

Editor’s note: This story was updated at 10:57 a.m. EST to correct the 2025-2026 construction spending figure from $56.7 billion to $57.6 billion.

Big finish

The NJSDA wrapped its largest project ever in 2024, the new $283.8 million state-of-the-art Perth Amboy High School.
Find out more.