Weddle & Sons marks the eighth brand to join the platform since inception less than three years ago. CRO appointment adds to FirstRidge’s highly experienced, blue-chip leadership team.

FirstRidge Service Partners (“FirstRidge”), a platform of best-in-class residential roofing and restoration specialists in the United States backed by Garnett Station Partners, today announced a new partnership with Weddle & Sons, Inc. Roofing (“Weddle & Sons”), a premier roofing contractor headquartered in Manhattan, Kansas with operations in five states. In addition to this partnership, FirstRidge also announced the appointment of Erik Zadrozny as the platform’s chief revenue officer.

Erik’s appointment further strengthens FirstRidge’s highly experienced management team, including CEO Seth Wartak and CFO Mark DuRei, who bring robust platform building, integration and services experience to the company. With the addition of Weddle & Sons, FirstRidge now operates eight premier roofing contractor brands across the country in 11 states.

“FirstRidge is making significant strides as a market-leading platform in the opportunity-rich roofing and exterior home services industry,” said Abe Hidary, founder & chairman of FirstRidge. “Successful platforms are built by partnering with great businesses and hiring excellent people to help integrate and scale them – and, as demonstrated by today’s announcement, we are doing exactly that. Since launching in November 2023, we have continued to expand across the U.S., rapidly gaining market share. As the go-to partner for founder-led roofing contractors, we are well positioned to continue our growth trajectory and provide even more customers with reliable, high-quality roofing and restoration services.”

“Weddle & Sons exemplifies the kind of company we aim to partner with – market-leading contractors who fit naturally within our existing portfolio and enhance our ability to deliver best-in-class roofing services across the ‘hail belt’ region,” said Seth Wartak, CEO of FirstRidge. “In the less than three years since our founding, our team has generated significant momentum by partnering with founders, leadership teams and entrepreneurs to establish a strong network of best-in-class contractors. As our platform grows, we are thrilled to welcome Erik to our team as CRO. Erik brings a unique combination of roofing industry expertise, commercial leadership and technology-driven growth experience. As we scale FirstRidge, his ability to combine best-in-class sales practices with modern technology enablement will be instrumental in helping our partner brands accelerate growth while delivering an exceptional customer experience.”

Weddle & Sons partnership

Founded in 1999, Weddle & Sons is a family-run trusted provider of roofing, gutter and solar panel installation, maintenance and repair services for communities across Kansas, Missouri, Nebraska, Wyoming and Colorado. The company’s success is founded in its commitment to quality, integrity and long-standing customer relationships developed over almost three decades in operation.

“When my brothers and I founded Weddle & Sons, we did so with the intention of building better lives for our neighbors, our communities and our employees,” said Allyn Weddle, president of Weddle & Sons. “Through our conversations over the past two years, it became clear to us that the FirstRidge team recognizes the value in the team we have built and in the trusted relationships we have established over the years with our customers. We are thrilled to have found a likeminded partner that will help us scale significantly, invest further in our talented team and unlock additional value for our customers, without sacrificing our culture, commitment to quality and reputation for excellent customer service.”

Erik Zadrozny named chief revenue officer

Erik joins FirstRidge with more than 20 years of leadership experience in the roofing, construction and building materials industries. During his career at QXO and its predecessor organizations, he held leadership roles across marketing, e-commerce, sales enablement and sales, building a reputation for leveraging technology, data and process innovation to drive growth and improve the customer experience. As chief revenue officer, he will help FirstRidge and its partner brands accelerate growth through technology-enabled strategies, best-in-class customer engagement and data-driven operational excellence.

With the addition of Weddle & Sons, FirstRidge now operates eight brands across the American Midwest and Mountain West. The platform’s additional partnerships include AMRG Exteriors, NexGen Exteriors, Qualis Roofing & Construction, Andrus Brothers Roofing Amarillo, Andrus Brothers Roofing Lubbock, Randall and Sons and Birdcreek Roofing. FirstRidge’s continued success is supported by Garnett Station Partners, a New York-based principal investment firm that manages approximately $4.5 billion of assets.

About FirstRidge Service Partners

FirstRidge Service Partners is building a leading network of premier roofing and exterior service providers by partnering with best-in-class founders and management teams nationwide. FirstRidge prioritizes quality, service and the consumer experience, and is committed to supporting its partner companies with investment in talent, infrastructure and technology. For more information, please visit firstridgeservicepartners.com.

About Garnett Station Partners

Garnett Station Partners is a principal investment firm founded in 2013 that manages approximately $4.5 billion of assets. Garnett Station partners with experienced and entrepreneurial management teams and strategic investors to build value for its portfolio of growth platforms. The firm draws on its global relationships, operational experience and rigorous diligence process to source, underwrite and manage investments. Core sectors include consumer and business services, health and wellness, automotive, and food and beverage. Garnett Station's culture is based on the principles of entrepreneurship, collaboration, analytical rigor and accountability. For more information, please visit garnettstation.com.

By Emma Peterson. 

How contractors and manufactures can handle long-term uncertainty and instability.    

For the last few years, it seems like we are in a cycle of uncertainty and instability, whether that be on the geopolitical stage or local. And as 2026 continues in this trend, it is seeming like abnormality might actually be the new normal. To learn about how you can navigate this, Heidi J. Ellsworth hosted Eric Voyer from The Farnsworth Group for an episode of Contractor Outlook™. 

Eric opened with some statistics, sharing, “We were talking to people in October and November of last year and we were all hopeful to be up 1-2% at this point. And now we’re here and that’s not happening. We have a labor shortage, four out of ten contractors are reporting challenges finding labor, and supply chain instability. At this point there’s kind of a begrudging acceptance of the unpredictability.”  

And that acceptance, however begrudging, is key, because once you accept the abnormality of this new normal, you can start navigating it. Eric explained: 

Time saving and pricing segmentation are key. For manufacturers, they need to make sure they are listening to their target market and making what they need, rather than just making what we’ve always made... As for contractors, offering options and showing your skill is key. You’re rarely alone in this business, somebody else is probably bidding for the same project and they might have a lower price. What you need to highlight is the value you bring, the workmanship and the customer service. 

By going back to these core aspects of business – thinking about your market and your differentiators, both manufacturers and contractors can set themselves up to weather the storm of uncertainty.  

Listen to the whole episode or Watch the newscast to learn more.

By Emma Peterson. 

Angi’s co-founder stops by for a conversation about how contractors can build trust and generate leads in a digital world.  

Before the advent of the Internet, word of mouth was one of the best ways to find new business as hearing another person’s positive experience is key to building trust in a new client. And just because we have the Internet doesn’t mean that word of mouth and trust-building are no longer powerful, they just look a little different. To learn about how word of mouth operates in a digital era, Heidi J. Ellsworth sat down with Angie Hicks, co-founder of Angi, for an episode of Contractor Outlook™. 

Angi, formerly Angie’s List, was founded 30 years ago, prior to the advent of the Internet. At that point, it was a call-in service and newsletter. Angie explained, “You would call in and ask me something like, ‘Hey, do you have any plumber for me?’ And I would get their info and then call around the area and say, ‘I have someone who needs a plumber. Do you have a plumber that I can add to our list and we give them a review.’”  

This method helped a lot of contractors and homeowners, but the huge jump for Angi was when the Internet came around. Angie shared:  

It didn't change the purpose of our business, which was always about helping homeowners feel confident in the experts they are bringing into their home and trusting with their money, but it did change how we achieved that. Instead of relying on traditional word of mouth, where you might find a contractor because one person has hired them, Angi was able to become a resource for people where they can hire based on 20 people’s experiences that are available to read about online.  

This shift in Angi’s business operations showcases a larger change happening in the world of contractor marketing – the way word of mouth and trust-building happen are no longer in one-on-one conversations or interactions. Angie explained, “In the pre-Angi days, contractor lead generation was basically just putting an ad in the yellow pages and making sure your business started with an ‘A’ so it showed up first in phone books... Today, it’s grown beyond that. We have a whole new generation of homeowners coming up that grew up in a digital world and their expectations from an experience standpoint are different.”  

How is it different? People expect immediacy; they want to be able to go onto a site like Angi to see 20 reviews in one place, rather than asking individuals around town, or they want an instant estimate from a contractor and will look somewhere else if there is a three-day wait time. Trying to deliver on this can feel overwhelming for contractors, but just as technology has changed how homeowners operate, it has also changed how contractors can operate. Angie elaborated on this:  

We’ve grown Angi to include some tools that can help make your process more efficient and speedy. For example, we have messaging tools that allow you to set up a custom message to send if you are in the middle of a job and can’t respond to inquiries immediately. This is a great place to show who you are as a company, to tell the customer about your business’s story and really build trust by letting people get to know you. 

Because even though the way we go about it has changed, building that trust through word of mouth has always been and will always be at the heart of a successful contracting business. 

Listen to the newscast or Watch the recording to learn more!

By Jenny Yu. 

Industry experts discuss how increased awareness and tight labor markets are driving a shift toward coating restoration systems. 

Roof coating restoration is gaining momentum as building owners and specifiers look for cost-effective, less disruptive ways to extend roof life. In a recent episode of CoatingsCast™, industry experts from KARNAK and Clarity Roof Consulting discussed how accessibility to information and evolving project expectations are driving this trend. 

According to Chris Huettig of KARNAK, demand for coating systems is increasingly influenced by more informed building owners. “It’s driven from the top down,” he said. “Building owners are more educated and have questions that they’re bringing to specifiers.” That shift is leading many to consider restoration over replacement, particularly when evaluating cost, speed and business disruption. Coating systems can often be installed faster and with smaller crews, making them an attractive option in a tight labor market. 

Dan King of Clarity Roof Consulting agreed, acknowledging a broader change in how roofs are viewed. “There's more information percolating,” he said. “There’s been a change in looking at your roof as just a cost item to seeing it as an asset.” That mindset encourages more strategic decision-making, where restoration can offer long-term value when aligned with building performance goals. 

From the specifier side, Dan emphasized the importance of being a trusted partner for property owners to achieve a successful joint outcome. “In our role, we have really been able to open conversations based on trust with our clients,” Dan stated. “We work transparently, we build that trust and we breed success. Then, you can start to look at the value of different solutions. If you don't have that shared knowledge, you end up being more risk averse.” 

The panelists also highlighted the importance of collaboration and access to reliable information when navigating codes, regulations and system selection. “There's subject matter expertise held in manufacturing,” Dan said. “We go to fire marshals, we go to code officials, SPRI, RCMA, NRCA, RoofersCoffeeShop®. I find the ICC codes library really helpful.” Establishing relationships with these industry staples and leveraging the available resources help contractors and specifiers stay informed and deliver quality, compliant projects.  

As labor constraints persist and owners seek greater return on investment, coating restoration is positioned as a practical solution that balances performance, efficiency and cost. 

Read the first article in this series, Listen to the full podcast or Watch the recording to learn more about how to meet evolving project demands with coating restorations. 

By Emma Peterson. 

In this Contractor Outlook, we dive into what today’s homeowners really want alongside Allison Hadley.  

Allison Hadley is the spokesperson of American Home Shield (AHS), a home warranty provider in the United States. Allison was commissioned by AHS to conduct independent consumer research in the home services field. More specifically, her recent study focused on the growing demand for greener homes. To learn more about this, we invited Allison on to Contractor Outlook™ to talk about her findings.  

Allison’s study found that modern homeowners are beginning to prioritize green homes, which are homes that are more energy efficient than traditional structures. Allison shared what these homes look like, saying, “68% reported they were installing at least one energy efficient appliance. In many ways, this is the most easily affordable green home upgrade. Another 54% have solar panels, which is another relatively easy installation, and 40% have green landscaping (think rewilding lawns).”   

The drive for these improvements is two-fold, with many homeowners being concerned about both rising utility prices and environmental impacts. Allison explained, “When we asked people why they were making home improvements towards energy efficiency and sustainability, 68% said that they were concerned about their environmental impact and sustainability and 80% said they were prioritizing cost savings on utilities.” 

And this trend isn’t just with existing homeowners. Potential buyers are also looking for green homes as the future, “I also surveyed those who were looking to buy homes within the next year. And they said that they would be willing to pay an average of $73,827 more for an environmentally friendly, energy efficient green home than what they would pay for a more traditional home.” 

What does all this mean for contractors and builders? Homeowners and homebuyers are shifting in their priorities and the professionals that continue to grow and succeed will shift with them. Allison summed up the findings of the study, saying, “I asked all the homeowners who own green homes, would they rather have a bigger, more traditional, less environmentally energy efficient home, or would they rather have a smaller greener home? And 63% said that they'd rather have a smaller greener home. It really goes to show you that the McMansion era is coming to an end close and a green home one is beginning.”  

Listen to the newscast or Watch the recording to learn more about the priorities of the modern homeowner. 

By Heidi J. Ellsworth.

Experiencing the craftsmanship, durability and history of slate roofing firsthand across the United Kingdom. 

To truly understand the beauty, durability and craftsmanship of roofing and especially slate roofing, you have to experience it firsthand. For me, that is exactly what happened when RoofersCoffeeShop® joined the National Slate Association (NSA) and the Slate Roofing Contractors Association (SRCA) for their recent educational tour through the United Kingdom focused on slate roofing, history and best practices. 

Alongside Megan Ellsworth, multimedia director for The Coffee Shops™, I had the incredible opportunity to travel with contractors, association leaders and slate professionals to experience the rich history and extraordinary performance of natural slate roofing firsthand. From visiting historic installations and award-winning projects to learning directly from industry experts, one message became very clear to me throughout the trip: Slate remains one of the most durable, sustainable and high-performing roofing materials available today. 

Throughout the journey, RoofersCoffeeShop worked closely with NSA and SRCA to document and share the experience in real time through social media and online coverage, helping bring the story of UK slate roofing to contractors and roofing professionals back home. From centuries-old slate roofs still protecting structures today to hands-on learning about quarrying, installation and craftsmanship, I was reminded again and again why slate continues to stand the test of time. 

After arriving in London and getting settled in, one of the first truly memorable experiences of the tour was the opportunity to visit the rooftop of the historic Admiralty Arch. This exceptional rooftop tour would not have been possible without the support and coordination of National Federation of Roofing Contractors (NFRC) and EWN Leadwork Specialists. Standing atop one of London’s most iconic landmarks offered an incredible perspective on both historic roofing craftsmanship and modern restoration efforts. 

Located at the western end of The Mall near Trafalgar Square, Admiralty Arch serves as the ceremonial gateway toward Buckingham Palace and has long stood as one of London’s most recognizable landmarks. Known for its impressive Edwardian architecture, intricate stonework and ceremonial significance during royal events and parades, the structure carries both architectural and cultural importance.

Today, the building is being thoughtfully transformed into a luxury hotel and private residences while preserving its remarkable historic character. Being able to tour the rooftop and better understand the restoration work taking place gave me a unique appreciation for the specialized craftsmanship required to preserve historic structures while adapting them for future generations. For roofing professionals, it was an extraordinary opportunity to see how restoration, waterproofing and historical preservation come together on one of the United Kingdom’s most significant buildings. 

The educational opportunities continued throughout the tour with another exceptional experience, visiting the quarry and production facilities at Burlington Stone in Northern England.  Seeing natural slate extracted directly from the quarry and following the process through preparation for roofing applications gave me an entirely new appreciation for the craftsmanship, engineering and precision behind premium slate systems. From the careful quarrying methods to the grading, splitting and preparation of slate for roofing, the visit offered a rare behind-the-scenes look at how one of the industry’s most respected roofing materials begins its journey. Watching slate move from the mountainside to a finished roofing product was not only educational but truly exceptional. It reinforced for me the incredible quality control, natural performance characteristics and legacy behind slate roofing. 

Equally impressive was seeing the incredible longevity and resilience of slate roofs across the UK. Many of the buildings we visited showcased roofing systems that have performed for generations, proving slate’s unmatched durability and long-term value. Natural slate’s low water absorption, resistance to harsh weather and remarkable life expectancy continue to make it a premium roofing choice around the world. 

The trip also showcased the artistry behind slate roofing. The precision, craftsmanship and technical expertise required to install and maintain slate systems were on full display throughout the experience. For me, it served as an important reminder of how specialized roofing trades preserve both performance and architectural history while creating roofs designed to last for decades, and often centuries. 

This experience was truly amazing. Being able to see the history, craftsmanship and long-term performance of slate up close was incredibly educational. I was honoured that RoofersCoffeeShop could help share the story through social media and online coverage, helping show the roofing industry why slate continues to be one of the highest-performing roofing systems available. 

The trip also underscored the importance of industry collaboration and ongoing education. By joining NSA and SRCA abroad, I was reminded how valuable it is when associations, contractors and manufacturers come together to share best practices, preserve craftsmanship and continue advancing roofing excellence. 

To learn more about the UK slate tour and upcoming slate initiatives, visit the National Slate Association and explore the NSA and SRCA directories on RoofersCoffeeShop.

This distinguished leadership group represents some of the industry’s most respected and forward-thinking professionals, whose collective leadership continues to drive meaningful progress across the roofing industry.

The Roofing Alliance proudly announces their Board of Trustees for 2026-2027. Sherri Miles of J.D. Miles & Sons Inc., Chesapeake, Virginia, will serve as president and John Campbell of Eagle Roofing Products, Rialto, California will serve as vice president.

The volunteer-based leadership of the Roofing Alliance is composed of 210 dedicated, diverse and thoughtful roofing contractors, manufacturers, suppliers and distributors, service providers and industry professionals united in their commitment to shape, strengthen and advance the roofing industry. This distinguished leadership group represents some of the industry’s most respected and forward-thinking professionals, whose collective leadership continues to drive meaningful progress across the roofing industry.

The Roofing Alliance thanks the following officers and trustees for their commitment to the roofing industry; terms are effective June 1, 2026 – May 31, 2027.

• Sherri Miles, J.D. Miles & Sons Inc. – president
• John Campbell, Eagle Roofing Products – vice president
• Jason Dark, Duro-Last Inc. – secretary-treasurer
• Greg Hudson, Duro-Last Inc. – immediate past president
• Piers Dormeyer, EagleView – trustee
• Heidi Ellsworth, The Coffee Shops – trustee
• Paige Harvill, Nations Roof – trustee
• Alex Hernandez, Clark Roofing Co. – trustee
• Beth Kegley, QXO – trustee
• Scott Keith, Jobba Trade Technologies  – trustee
• John Kiesel, Division 7 Roofing – trustee
• Michael Kruger, L.E. Schwartz & Son Inc. – trustee
• Craig Rainey, Supreme Roofing – trustee
• Natalia Rizzatti, All Weather Insulated Panels – trustee
• Jason Stanley, IB Roof Systems – trustee
• John Yuko, GSM Roofing – trustee

About the Roofing Alliance

The Roofing Alliance unites a powerful network of more than 210 forward-thinking industry leaders committed to advancing and shaping the future of the roofing industry. Through strategic investments, collaboration and industry partnerships, the Roofing Alliance funds high-impact initiatives focused on education, cutting-edge research, workforce development and philanthropic outreach that strengthens communities across the country. From supporting the next generation of roofing professionals through scholarships, university partnerships and career development programs to driving innovation through industry research its Center for Roofing Innovation and Leadership, the Roofing Alliance serves as a catalyst for long-term growth, leadership and excellence across the roofing industry. For more information, please contact Alison L. LaValley, Executive Director, at alavalley@nrca.net.

By Emma Peterson. 

Catch up on the biggest industry stories from May 2026. 

This last May, The Coffee Shops™ crew has been working hard to keep up with all the news and developments of the industry, whether it’s new events, evolving technology, shifting regulations or something else! To help readers like you keep up with everything, we like to put together a list of the top articles each month so you can see what the industry has been talking about.  

This month, we saw multiple articles about artificial intelligence (AI) on our top ten list. In eighth spot was “Cutting through the noise around AI,” which highlights Patrick Garcia of SRS Distribution and Fred Castonguay of Reworked.ai’s insights into how business can use AI effectively. The other article, in the fifth spot on our list, explores the common fear of AI taking human jobs with Denver Riggleman, the co-founder and CEO of Hootl. 

This month’s top list also saw articles from Coffee Shops’ President Heidi J. Ellsworth and our friends at Cotney Consulting Group. In her article, Heidi shares how Thomas Roofing delivers both quality craftsmanship and community support. As for the Cotney Consulting Group article, it dives into the difference between business and profitability, emphasizing how successful contractors are the ones who operate with better habits.  

And in the top spot for the month is one of my articles about “how the Farnsworth Group fosters business growth by helping contractors and other professionals better understand the market around them.” 

May 2026 top article list 

10 - Thomas Roofing and Supply builds a legacy through family, quality and community by Heidi J. Ellsworth 

9 - The operational habits that separate profitable contractors from busy ones by Cotney Consulting Group 

8 - Cutting through the noise around AI by Emma Peterson 

7 - Kick off the summer with the SRS XTV Soccer Tour! by Emma Peterson 

6 - Investing in people, not just positions by Emma Peterson 

5 - Is AI coming for our jobs? by Emma Peterson 

4 - When your company grows beyond you by Emma Peterson 

3 - Beyond the roof: Taking care of families in need by Emma Peterson 

2 - Training as the foundation of a stronger roofing industry by Emma Peterson 

1 - Seeing the big picture by Emma Peterson 

By Heidi J. Ellsworth.

Understanding housing trends can help roofing contractors better prepare for what is coming next. 

One of the smartest things roofing contractors can do to better predict future business is to pay attention to what is happening in the housing market. While roofing often feels insulated from economic shifts because roofs eventually need to be repaired or replaced no matter what, the reality is that housing activity can provide valuable clues about where opportunities and slowdowns may be headed. 

Whether it is home sales, rental growth, mortgage rates or new housing starts, these economic indicators often act as an early warning system for contractors. Following housing trends can help roofing businesses better understand consumer confidence, predict shifts in residential reroofing demand and even anticipate labor and material needs. 

According to recent insights from Sage Economics, the 2026 spring housing market has been softer than many expected. Rising mortgage rates, which recently climbed to a nine-month high of 6.51% for a 30-year fixed mortgage, have significantly slowed buyer activity and reduced mortgage applications. Pending home sales have improved modestly but continue to face pressure from affordability concerns and limited housing supply. Sage economists have noted that the current housing market is experiencing another sluggish spring selling season as affordability challenges continue to impact buyer confidence. 

Why does this matter to roofing contractors? Because home sales often create roofing opportunities. When homes change ownership, inspections frequently uncover roofing concerns that need repair or replacement before a transaction closes. New homeowners also tend to invest in upgrades shortly after purchasing. Slower home sales can mean fewer immediate opportunities tied to real estate activity. 

But it is not time to panic. Contractors should not only focus on home ownership trends as housing-related indicators. Rental housing, especially the growth of build-to-rent communities and multifamily housing, is becoming increasingly important. In an economy where homeownership has become less affordable due to higher mortgage rates, more consumers stay in rental housing longer. This often increases demand for apartment construction and renovations while reducing movement in the traditional home buying cycle.  

Sage highlighted this in their report which found a continued rise of build-to-rent housing, showing how developers are responding to affordability challenges by expanding rental options instead of for-sale inventory. For roofing contractors, this trend could mean increased opportunities in multifamily reroofing, maintenance contracts and long-term relationships with property management companies. 

Housing starts and permitting are another important trend to monitor. Sage reported that while housing starts have remained relatively elevated recently, growth has largely been driven by multifamily projects, while single-family permitting remainsdown year over year. That distinction matters because it can shift where roofing demand develops geographically and by project type. Contractors focused solely on steep-slope residential work may experience different market conditions than those working in commercial or multifamily sectors. 

It is the roofing contractors who pay attention to and understand these shifts that will be better positioned to offer in-demand services. Because the good news is that roofing remains essential. Roofs age, storms happen and maintenance never stops. But at the same time, understanding market and business trends can help contractors make better hiring decisions, adjust marketing strategies and plan for future growth. 

At the end of the day, economic uncertainty does not mean contractors should panic. It means they should pay attention. As housing trends, mortgage rates and economic conditions continue to shift, staying informed has never been more important for roofing contractors.  

Follow RoofersCoffeeShop® as we continue reporting on the latest housing, economic and construction trends from trusted industry experts like Sage Economics. Visit Sage Policy Group to learn more about their economic forecasting and analysis and explore Dr. Anirban Basu on the RoofersCoffeeShop Speakers Bureau to learn more about one of the roofing industry’s leading economic voices and keynote speakers. 

Despite the macro headwinds, firm-level fundamentals tell a resilient story.

The ACEC Research Institute released its Engineering Business Sentiment Survey Q2 today, painting a picture of an industry that remains fundamentally sound, while recalibrating in response to a more uncertain economic environment. 

The quarterly survey of 583 engineering firm executives found firm finances and industry performance still strong — net ratings of +79 and +74, respectively — yet confidence in the broader U.S. economy dropped 26 points quarter over quarter to +19. The 12-month economic outlook has turned negative at -6.  

Political uncertainty (cited by 90% of respondents), inflation and rising costs (84%), geopolitical tensions (81%) and recession concerns (69%) are the primary drivers of that caution. Firms place the probability of a recession in the next six months at 46%. 

Despite the macro headwinds, firm-level fundamentals tell a resilient story. Nearly half of respondents (49%) report backlogs of one year or more, with the median holding steady at 11 months showing there is plenty of work to be done. Sixty-four percent expect hiring to increase over the next 12 months. Workforce pressures are also easing — only 33% of firms turned down work due to staffing shortages in the past six months, down from 51% in Q4 2024. This position of strength gives firms more capacity to pursue the right work rather than any work. Among those still turning down projects, 83% say they are being more selective about what they accept. 

Current sector performance remains broadly positive led by data centers (+87) and energy and utilities (+80). Federal, military, state and local government buildings posted the largest year-over-year gain in future sentiment, up 53 points — a striking recovery from the uncertainty that gripped the sector following the tariff announcements of Q2 2025. Tariff concern itself has faded considerably, with its net rating falling from +49 at its peak to just +9 this quarter. 

“The sector is shifting from a growth posture driven by demand and labor constraints to one defined by cautious expansion, cost management and strategic selectivity," said ACEC board chair Steve Lefton. “Firms are healthy and they're planning to grow with greater discipline and a closer eye on the horizon.” 

One emerging pressure point is healthcare costs. Seventy-eight percent of firms saw insurance premium increases at their last renewal, with an average increase of 14% and 92% of respondents expressed at least some concern. The burden falls hardest on smaller firms, though most (68%) firms report no change to hiring plans as a result. 

“The story this quarter is recalibration,” said Joe Bates, senior research consultant for the ACEC Research Institute. “Firms are prioritizing higher-value projects, managing costs more deliberately and planning for growth at a more measured pace. That's the hallmark of an industry that knows how to navigate uncertainty.” 

The bottom line 

The Q2 2026 results reflect an industry adapting in real time to a more complex operating environment. Firms are healthy, and they are also more selective, more cost-conscious and more attuned to macro risks than at any point in the past year. 

About the ACEC Research Institute

The ACEC Research Institute is the independent research arm of the American Council of Engineering Companies (ACEC). Its mission is to fund and deliver research to equip the engineering industry with actionable intelligence on the issues critical to its success. Learn more at www.acecresearchinstitute.org.