Following government stimulus programmes such as the Infrastructure Investment and Jobs Act (IIJA), the ‘Investing in America’ initiative, and the Inflation Reduction Act, U.S. construction experienced robust growth in 2024. Annual gains reached 6.5%, the highest among G7 nations. Yet, as 2025 continues to unfold, the sector faces pronounced headwinds. Analysing data up to Q2, 2025, business intelligence provider GlobalData (the owner of BTMI which publishes Cranes Today), forecast 1% real-term growth for the U.S., while Canada was expected to return to 2.6% growth, contributing to a North American average of 1.2% — a marked slowdown from the previous year.
U.S. growth now hinges on the durability of tariff policies, particularly on steel and aluminium, as well as broader reciprocal tariffs on key trading partners.
For Canada, heavily reliant on U.S. trade, the terms of ongoing negotiations are critical; however, domestic investment in housing and energy was expected to support a recovery.
TARIFFS AND TRADE WARS
April 2025’s ‘Liberation Day’ introduced some of the harshest U.S. tariff measures since the 1930s. The administration imposed blanket tariffs of 10–25% on all trading partners, with plans to reinstate 11–50% reciprocal tariffs unless formal agreements existed. Concurrently, steel and aluminium import duties doubled from 25% to 50%, creating notable inflationary pressure.
Contractors faced material cost increases of 5.8–6.8%, while residential construction has seen an additional $10,900 added to the price of the average new single-family home. Supply chain disruptions and rising costs are contributing to project delays, with 25% of ABC members reporting tariff-related cancellations or postponements in May 2025. Escalation clauses, renegotiations, and front-loaded procurement have become standard strategies to mitigate risk, though such approaches have already contributed to a 0.3% contraction in U.S. GDP in Q1, 2025.
While domestic resourcing offers potential relief, long-term solutions are emerging through strategic investments.
For instance, the acquisition of U.S. Steel by Nippon Steel has strengthened domestic capacity, with an $11 billion investment plan and government ‘golden share’ oversight. Despite lobbying efforts by National Association of Home Builders and The Associated General Contractors of America uncertainties around tariffs, material costs, and trade policy persist.
RESIDENTIAL SECTOR SQUEEZE
The U.S. residential construction sector, accounting for 43.3% of total construction in 2024, is particularly sensitive to tariff-driven cost pressures and reduced funding. GlobalData forecast a 0.6% decline in 2025, with new building permits falling 3.2% YoY and completions declining 12.3% in April 2025.
Proposed budget cuts exacerbate the challenge. The FY26 federal budget seeks to reduce HUD funding by $26.7 billion, with major programmes such as HOPWA and IHBG facing cuts. Combined with elevated 30-year mortgage rates at 6.84%, housing affordability constraints are expected to further depress demand, particularly in price-sensitive regions.
In Canada, residential construction represents 42.3% of the sector. Prime Minister Carney’s government aims to double homebuilding to 500,000 units per year, supported by CAD25B in debt financing and CAD1B in equity for residential projects. The National Housing Strategy adds CAD115B ($84.3B) through 2027, funding 240,000 new units and the renewal of 300,000 more. Municipal reforms on zoning, development charges, and land-use regulations are also expected to facilitate supply expansion, particularly in Toronto and Vancouver, where affordability ratios remain the highest nationally.
INFRASTRUCTURE AND ENERGY
The U.S. infrastructure and energy sectors face short-term slowdowns due to policy reversals. On January 20, 2025, funding under the IIJA and IRA was temporarily halted, including 400 cancelled grants worth $1.7 billion.
Subsequent legislative actions, like the One Big Beautiful Bill Act (OBBBA), have compressed project timelines and diverted funds from climate resilience toward fossil fuel infrastructure.
High-profile projects such as California’s high-speed rail have been impacted, though private capital is increasingly stepping in to fill the gap.
The trend mirrors European practices, where private investment underpins nearly half of airport infrastructure.
Federal grants through the FHWA, including $4.9 billion for bridge repairs and $500 million for rural bridge upgrades, alongside state-level initiatives like Virginia’s $7 billion transport investment, provide selective support.
GROWTH AREAS
Despite headwinds, sectors tied to technological infrastructure and domestic energy show promise. Private investments in AI and data centres are driving new construction projects, with initiatives like the Stargate Project expected to deliver 20 data centres with a projected $500B investment by 2029. Companies such as Amazon are expanding U.S. data centre complexes with investments exceeding $20 billion.
In energy, President Trump’s policies aim to triple nuclear capacity to 400GW by 2050, modernise reactor approvals, and reinvigorate coal generation through a $200 billion Energy Infrastructure Reinvestment Program. Domestic solar manufacturing is also growing, highlighted by T1 Energy’s $850 million solar cell facility in Austin, Texas, scheduled to produce 5GW annually by the end of 2026.
CANADA’S CONSTRUCTION LANDSCAPE
Canadian construction recovery is supported by 11.1% YoY growth in building permits in March 2025 and a 3.3% increase in total building construction investment in Q1, 2025.
Energy, transport, and infrastructure investments, coupled with the National Housing Strategy, underpin this growth. Carney’s administration has removed federal barriers to inter-provincial trade, scrapped the carbon tax on fuel and residential heating, and retained incentives for clean energy investments.
Energy infrastructure projects, such as Ontario’s four SMR nuclear plants ($28.5B), are designed to add 16,000MW by 2050. Road, rail, and transit investments across Alberta, Quebec, and Western Canada total billions, enhancing both mobility and construction output.
Residential construction faces supplyside pressures from steel, aluminium, and equipment costs linked to U.S. tariffs, yet ongoing regulatory reforms, debt and equity financing, and provincial initiatives are expected to bolster growth in the second half of 2025.
FUTURE FORECAST
Over the medium term, GlobalData forecasts U.S. construction to achieve an average 1.9% CAGR from 2026–2029, supported by transport infrastructure and institutional buildings. Canada is projected to record 2.8% average annual growth, underpinned by energy and utilities projects, transport upgrades, and housing initiatives.
Technological and energy sectors will continue to drive opportunities, from nuclear expansion to domestic manufacturing and renewable energy projects. Private capital is likely to play an increasing role in both countries, filling gaps created by budget cuts and policy shifts.
For investors, contractors, and developers, navigating tariff regimes, financing availability, and regulatory frameworks will be critical to seizing growth opportunities across the continent.
So it seems 2025 will likely represent a turning point for North American construction. After a banner year in 2024, growth is slowing due to tariffs, trade conflicts, budget cuts, and project delays. While the U.S. faces challenges in residential, industrial, and infrastructure sectors, pockets of growth exist in data centres, nuclear, and domestic manufacturing. Canada’s construction recovery, led by housing and energy investments, is positioning the country for steady growth despite cross-border uncertainties. Long-term expansion will depend on a combination of policy stability, domestic resource development, and private sector engagement.
SOUTH AMERICA
Latin American is also facing a challenging 2025 due to global pressures and mixed economic signals although, like North America, targeted infrastructure, industrial, and energy projects offer pockets of growth.
Latin America’s construction sector is poised for a 0.6% contraction in 2025, reversing the modest 0.7% growth seen in 2024. The region faces a complex mix of geopolitical tensions, US-led tariffs, and fiscal tightening, which are disrupting trade-dependent economies such as Mexico, Brazil, and Chile.
Mexico, in particular, is expected to see a 5.9% decline, driven by 25% US tariffs on key materials, currency depreciation, and high construction costs. Investor confidence has weakened following the end of a 90-day US–Mexico trade pause.
Bolivia also faces sharp contraction due to collapsing permits, rising material costs, and macroeconomic instability.
Conversely, Peru and Ecuador are expected to expand by 3.8%, supported by infrastructure upgrades, industrial, energy, and utilities investments.
Colombia’s major projects, including the Bogotá Metro, help offset fiscal and political risks. Overall, the region exhibits high short-term volatility, but targeted investments provide opportunities for selective growth.
BRAZIL
Brazil’s construction industry is projected to grow 2.5% in real terms in 2025, supported by residential expansion, industrial and energy projects, and rising construction employment. Q1 2025 saw 3.4% YoY growth in construction value-add, with employment rising to 7.5 million workers. Major infrastructure funding includes BRL80 billion ($14.8 billion) in BNDES-approved credits for ports, shipyards, and related projects.
Yet, Brazil faces material cost volatility, US tariffs, weakened external demand, and fiscal freezes. The 2025 budget freeze of BRL31.3 billion ($5.8 billion) constrains public infrastructure spending. Tariffs on 19 steel products further strain margins.
Looking ahead, the sector is expected to average 4% annual growth from 2026–2029, driven by industrial, data centre, energy, oil, and mining projects. Notable initiatives include the Redata National Data Center Plan ($369 billion over 10 years), the Casa dos Ventos data centre project ($9.1 billion), and expanded road, airport, and subway programs in São Paulo, Rio de Janeiro, and Minas Gerais.
Private investment is also robust, with BRL372.3 billion ($68.7 billion) projected for infrastructure between 2025–2029, including energy hubs, semiconductor expansion, EV charging networks, and logistics improvements.
PANAMA
Panama’s construction sector is expected to grow 2.9% in 2025, underpinned by infrastructure, residential, transportation, sanitation, and energy projects. Despite a downgraded investment-grade rating, the government has secured loans totaling over $2.8 billion for education, canal, and sanitation infrastructure.
Key initiatives include the David– Panama Border Train ($5 billion), Metro Line 3 ($1.1 billion), and Panama Canal water and decarbonisation projects ($1.6 billion). Strategic planning under the Mobility and Logistics Master Plan 2035 and renewable energy targets — 20% national consumption from renewables by 2030 — support mid-term growth. Output is forecast to grow at 5.2% CAGR from 2026–2029.
ECUADOR
Ecuador is forecast to expand 3.8% in 2025, underpinned by power, mining, and industrial construction. The government targets a rise in crude oil output from 475,272 bpd to 600,000 bpd by 2026, while a $2.43 billion renewable energy plan adds 1,471 MW via hydro, solar, wind, and geothermal projects.
Mining investments are set to surge, with six major projects — including Loma Larga gold — potentially attracting $10 billion in construction activity. Public private partnerships remain critical, with $6.6 billion in approved infrastructure projects in 2025. Average annual growth from 2026–2029 is projected at 4.6%, driven by mining, ports, energy, and transport projects.
URUGUAY
After a 0.8% contraction in 2024, Uruguay’s construction industry is projected to grow 3.7% in 2025, supported by water and transport infrastructure, tourism, and renewable energy projects. Despite high borrowing costs and ongoing tariffs, the government’s green hydrogen roadmap aims to attract $18 billion in investment by 2040.
Major projects include Paysandu Green Hydrogen ($4 billion), Colonia Modern City ($2 billion), and Canelones Data Center ($850 million). Nationwide sanitation investments total $500 million, with infrastructure upgrades supporting long-term growth. Average annual growth from 2026–2029 is projected at 3.6%, with continued focus on renewable energy, transport, and water infrastructure.
To surmise, Latin America’s construction sector faces a fragmented 2025 landscape, with contractions in trade-dependent economies offset by pockets of growth in industrial, energy, and infrastructure investments.
Brazil, Panama, Ecuador, and Uruguay provide examples of resilience through strategic public-private partnerships and targeted long-term projects, while geopolitical risks, tariffs, and fiscal constraints remain significant challenges across the region.
Mammoet completes six module installations for new terminal at Dallas Fort Worth International Airport
Mammoet has successfully supported the installation of six modules that make up the first phase of a the future sixth terminal at Dallas Fort Worth International Airport (DFW); reaching a significant milestone in a multi-phase project to expand capacity at the major US hub.
This initial phase of Terminal F has been built using modular construction techniques; a method that sees large structures prefabricated off-site, in sections, before being transported to their final location and connected.
It allows major construction and infrastructure projects to be completed faster, safer and more cost-efficiently. For busy sites like airports, where space is limited and civil work can cause significant disruptions, it has major benefits.
For the new Terminal F, Mammoet worked with Walsh Group, who led the Innovation Next+ joint venture to build the initial 15-gate terminal concourse and new Skylink Station.
The operation marks the biggest airport terminal modules ever moved, with the heaviest unit weighing 3,320t and measuring 85 metres in length.
The modules were fabricated at a nearby fabrication site on airport property and transported to the site, one by one, on Mammoet Self- Propelled Modular Transporters (SPMTs).
The SPMTs were fitted with metal supports, which allowed them to be lifted via the stroke of the SPMTs before being carried across the tarmac and installed at their new home.
Max trailer launches in North America with two drop trailers
The MAX Trailer brand, part of Luxembourg headquartered The Faymonville Group (a full-range manufacturer of special vehicles for heavy load transport and special transport), is entering the North American trailer market.
The company has setup an assembly plant in Little Rock, Arkansas, from where the first two models, the SteeroX and HoverX, will be launched.
The SteeroX is a compact single drop trailer. Its steerable 2+2 axle layout is engineered for high payloads and improved manoeuvrability, says MAX Trailer. It has an extendable deck, low platform height, and generous axle stroke, and 126” rear swing clearance gooseneck, making it suitable for a wide range of loads.
The HoverX is a three-axle double drop trailer that can be extended via a nitro-booster or a 2-axle Joe Dog. MAX Trailer says it is the ideal solution for transporting oversized loads that would otherwise exceed standard height limits. Its extendable ultra-low main deck profile is designed to create room for taller freight while improving stability on the road. A hydraulic king pin steering system aims to provide control in tight job sites or on winding routes. With a bolt-on coupling design, the drop deck can be extended quickly and safely with additional inserts when extra length is needed. It has a fully metallised frame to protect against corrosion.
Franna scales up North American presence
Franna, the Australian manufacturer of pick and carry cranes, has announced the strengthening of its North American presence with comprehensive parts and service coverage from the new Terex Louisville parts facility along with the appointment of Kevin Aabel to the role of business development manager.
Supplementing the growth of Franna products in North America is the establishment of parts and service support from the new, state-of-the-art Terex Louisville parts facility, a 134,000 square-foot warehouse that Franna says has improved operational efficiency and reduced transportation costs. Equipped with the latest technology, including an automated parts picking system, the facility has also introduced a second shift to provide improved parts availability and quicker response times for Franna customers across North America. Terex Louisville also houses a fully trained and skilled service team, experienced with the Franna product line to support customers nationwide.
As a continuation of Franna investment in the region the brand has also appointed Kevin Aable to the new role of business development manager for Franna in North America. Aable offers extensive experience in crane sales across North America, most recently at Manitowoc, where he managed multiple dealers in the Midwest and led direct sales efforts throughout Canada.
His product expertise spans truckmounted, rough terrain, crawler, and allterrain cranes, knowledge he has built not only at Manitowoc but also during his time with Oshkosh and Altec, Inc.
In related news, earlier in the year, Franna also appointed Mobile Cranes Canada Ltd (MCC) as an official distributor of Franna cranes across Canada.
Based in Nisku, Alberta, MCC represents Franna in Alberta, British Columbia, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, and Prince Edward Island. This, it says, marks a significant step forward as it expands its global footprint and brings its lifting solutions to the Canadian market.
Lampson showcases the millennium crane
Kennewick, Washington, USA-based heavy lift specialist Lampson International has published a video on YouTube about its Lampson Millennium Cranes.
The company says the Lampson Millennium Crane represents the perfect combination of time-tested design and modern innovation.
Millennium Cranes were originally developed to meet the demands of construction, industrial, and marine projects in the United States; today, each repowered crane is refurbished and its control system upgraded with the latest technology, ensuring performance that matches or exceeds new equipment.
Unlike many cranes that simply age out of usefulness, the Millennium Crane continues to evolve, Lampson explains.
The company’s engineering teams integrate advanced control systems, safety upgrades, and new components into every refurbishment. This, it says, gives clients the benefit of a proven design reinforced with modern reliability.
Looking ahead, Lampson says Millennium Cranes are destined to become a cornerstone of the crane industry. Their ability to adapt new technologies and applications keeps them relevant in a world where project demands are only getting more challenging.
The video can be seen here: www.youtube. com/watch?v=w4ehRpDdUbM&t=282s
Olympic Lift
In preparation for the 2028 Summer Olympics, Wilder, Kentucky, USAheadquartered coast-to-coast lifting services provider Maxim Crane Works used its Liebherr LTM 1650-8.1 with 341,000 lbs. of counterweight and 276’ of luffing jib to replace 19 rooftop units at the Long Beach Convention Center, reaching out to 270’. The Liebherr crane was supported by a Grove GMK5150L.
All Family adds Broderson carry-deck cranes to rental fleet
The ALL Family of Companies, the largest privately held crane rental and sales operation in North America, has taken delivery of seven new Broderson carry-deck cranes. The shipment comprises three IC-280s, two IC-80s, and two IC-20-Ks. Although ALL is an authorised Broderson dealer, these cranes are destined for the company’s rental fleet, reinforcing the lift leader’s industrial crane offering.
According to ALL, the IC-280 is the smallest crane in Broderson’s 20-ton class, yet it offers the longest boom and strongest overall load chart in that category. “There’s always strong demand for this weight class, and the IC-280 gives customers the best of the best,” said Josh Bacci, Ohio sales manager for ALL. “Its overall dimensions are within inches of the next weight class down, so customers gain extra capacity without sacrificing the compact profile Broderson is known for.”
The IC-80 is a 9-ton carry deck that ALL says can be used for a wide range of industrial and maintenance tasks thanks to its ability to slip into spaces off-limits to a boom truck, truck crane, or traditional rough-terrain crane.
The IC-20-K is Broderson’s smallest pick-and-carry crane (2.5-ton capacity). The IC-20 shares many features of its larger siblings and adds an extremely tight turning radius for manoeuvrability in confined work sites.
As a Broderson dealer, ALL sells new machines in Ohio, West Virginia, Wisconsin, and western Pennsylvania and may sell used units from its rental fleet at any branch.
Liebherr at AEM’s celebration of construction on the national mall
Between May 14-16, 2025, Liebherr USA exhibited at the AEM’s second Celebration of Construction on the National Mall in Washington, DC. The event provided an opportunity for OEMs to meet with US policymakers and federal agencies to provide input on the construction industry. At the event Liebherr USA showcased its LRT 1090-2.1 rough terrain crane (alongside the 42 M5 XXT truck mounted concrete pump, and the L 546 wheel loader).
“Liebherr’s dedication to the U.S. market extends beyond manufacturing as we are deeply committed to supporting local communities and promoting sustainable practices within the construction industry,” commented Kai Friedrich, managing director, Liebherr USA.
This article was written using data sourced from Global Data’s ‘Global Construction Outlook to 2029 (Q2 2025)’, released on June 30th, 2025. The full indepth report is available to purchase from: www.globaldata.com
