Rochester construction industry leaders are expressing optimism about 2026, with major firms forecasting strong growth in healthcare, education, and public sector projects. The American Institute of Architects projects nonresidential construction spending to rise 4% in 2026, and Rochester's largest construction companies say that outlook aligns perfectly with what's happening in the local market.
James "Jim" McKenna, senior vice president of LeChase Construction Services—a Rochester-based full-service construction management firm established in 1944—stated in an interview published December 11, 2025 by Rochester Business Journal: "We're pretty optimistic for a strong 2026 locally. We don't see a large change over from 2025."
McKenna highlighted that core sectors like higher education, healthcare, and manufacturing continue to show steady demand locally heading into 2026. Nationally, those segments remain among the healthiest, with federal incentives helping sustain manufacturing and energy-related projects.
LeChase is implementing innovative strategies to address ongoing workforce constraints:
Terry Stevens, executive vice president at Pike Construction Services—a fifth-generation firm founded in Rochester in 1873—outlined the major challenges shaping the industry: "Labor continued to be a constraint in all aspects. The real question industrywide as we progress into 2026 isn't so much about do we have the work, but do we have the resources and people to actually perform the work."
According to the Associated Builders and Contractors, approximately 499,000 to 500,000 new skilled workers are required in 2026 to keep up with industry demand. Stevens emphasized additional challenges including:
Pike is responding to these challenges through transparency, communication, and innovative project delivery. One key trend Stevens highlighted: "Right now it's not just about building from the ground up, it's also about jobs where people are trying to use what they already have and trying to retrofit."
A prime example is the Rochester Broadway Theater League's (RBTL) partnership with Pike and LaBella Associates on a $65 million renovation effort of its West Herr Performing Arts Center on East Main Street. Named PROJECT RESTOURATION, it will be the largest renovation by an arts organization in Rochester's history when completed in 2030.
Stevens emphasized that teams delivering "project certainty in cost, budget and schedule" while exploring new technology tools will continue to succeed. Pike remains bullish on Rochester's market: "There's still a lot of opportunities out there. People are still building. I expect a strong market next year nationally and locally."
The outlook from Rochester's two largest construction firms aligns with broader industry trends. Both companies emphasize the importance of investing in people, embracing technology, and adapting to evolving market conditions. For construction professionals, contractors, suppliers, and business owners in the Rochester market, 2026 presents opportunities in:
Source: Rochester Business Journal, December 11, 2025 - "Rochester construction leaders forecast strong 2026" by Caurie Putnam. Statistics from American Institute of Architects, McKinsey & Co., and Associated Builders and Contractors.
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