The numbers are in. Civil infrastructure is under increasing stress—and not just from the physical stress of wear and tear or climate factors. Rather, the industry is seeing significant economic changes that are putting increasing stress on the industry.
At the top of the list, we have rising labor and material costs, which are changing the game, but really that is just the tip of the iceberg. It is time we get a much clearer picture about where we are now with our infrastructure, so we can move forward and build a better tomorrow. Otherwise, the cracks in the infrastructure are only going to widen, and ultimately the failure will be greater than we could have ever imagined.
Dig into Data
Perhaps one of the clearest places to find data related to the civil infrastructure industry is in FMI’s 2025 Civil Infrastructure Construction Index. We see it dropped to 50.8 in the third quarter of 2025, dipping from 52.2 in the second quarter, and down from 57.7 in the first quarter. We are seeing a slow, yet steady, decline. Why?
There are several factors that are driving this dip including rising material and labor costs, backlogs holding steady, uncertain future demand, and regulatory complexity, which continues to slow projects. At the same time 52% of companies reported a higher project backlog than in the same quarter last year.
The good news is investment from both federal and state programs is still often available, but margins are squeezed and the pace of innovation in many cases remains slow.
Moving Forward
With all of this in mind, what steps can the industry take to continue to move forward? FMI suggests companies must lean into strategic thinking, agility, resilience, and proactive decision-making.
This is precisely what we saw when the 2025 Infrastructure Report was released earlier this year. The 2025 Infrastructure Report Card scores 18 categories of infrastructure including broadband, which is new to the list this year, and we learned America’s infrastructure has received a cumulative GPA of a C. This is the highest we have seen, but there is still a way to go.
ASCE (American Society of Civil Engineers), which puts out the report card, suggests the solution to rebuilding infrastructure is myriad and will require a concerted effort from government, scientists, technologists, academia, manufacturing, and the AEC (architecture, engineering, and construction) community.
I would add technology will become key to leverage data to navigate the landscape. Let’s consider some ways technology can help build stronger infrastructure:
- Embracing digital twins and predictive maintenance to extend asset lifecycles.
- Leveraging AI (artificial intelligence) and the IoT (Internet of Things) to make infrastructure more adaptive and efficient.
- Prioritizing cybersecurity across all connected systems.
We must build smart, sustainable, and resilient infrastructure. We need new technologies, products, materials and even new processes to drive this forward. Without strategic execution, all the funding in the world won’t fix our problems. At the same time, we need to upskill a new generation of tech-savvy workers who can build and maintain what’s next.
At the end of the day, we need to align people, process, and technology to take the right leap forward. If we do, we will be able to build the roads, bridges, and energy systems of tomorrow.
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