Amidst a backdrop of economic uncertainty, contractors across the Midwest are navigating a landscape of fluctuating revenues and shifting market dynamics. The region’s contractors, who collectively posted $60.6 billion in overall revenue for 2024, are grappling with a slight downturn from the previous year’s $66.9 billion. However, this performance remains the second-best average of the last decade, indicating a sector that, while challenged, is far from stagnant.
The Midwest’s top 25 contractors, in particular, saw their combined regional revenue dip to $47.7 billion in 2024, down from $50.4 billion in 2023. This slight decline, however, is not deterring industry leaders from pursuing growth opportunities. Instead, it’s driving a strategic focus on diversification and innovation. “The region remains attractive for industrial development due to its geographic and population advantages,” says Michael C. Brown, regional president at Chicago-based Gilbane Building Co. “We’re also seeing clients place greater emphasis on sustainable construction, efficiency, prefabrication and modular construction—areas where we’ve made significant progress.”
The shift towards sustainable and efficient construction practices is not just a trend; it’s a necessity. Companies like Gilbane are leveraging their expertise in advanced manufacturing, science, and technology to drive revenue growth. Meanwhile, McCarthy Building Cos., based in St. Louis, is capitalizing on the increasing demand for healthcare facilities and research centers. Ryan Sawall, central region CEO at McCarthy, notes that while labor availability and cost escalation pose challenges, the demand for new projects remains robust. “Labor availability and cost escalation remain headwinds, but demand hasn’t slowed,” he says. “Our industrial team is also benefiting from a surge of new project opportunities in the manufacturing, power and process markets,” Sawall adds, highlighting the booming renewable energy sector, particularly solar projects, as a practical low-carbon power source.
The Midwest is also emerging as a hub for mission-critical projects and data centers, driven by sustained public and private investment in states like Minnesota, Wisconsin, and Illinois. Developers in these regions are prioritizing high-efficiency, highly amenitized buildings, reflecting a broader industry trend towards sustainability and innovation. Sheryl Van Anne, vice president and general manager at M.A. Mortenson Co., emphasizes the importance of staying aligned with clients and partners to deliver large, complex projects efficiently. “We leaned heavily [in 2024] into sectors where we’ve built deep expertise—clean energy, health care, education and mission-critical—and we saw results,” Van Anne says.
Despite these advancements, project cost uncertainty remains a significant challenge. Chuck Binkowski, chief operating officer at Barton Malow Holdings LLC, points out that rapidly changing economic conditions create substantial risks for clients, often delaying decisions and disrupting planning. “This cost uncertainty often delays decisions and disrupts planning. To navigate this environment, it’s crucial to maintain a heightened level of communication with key clients. A proactive, transparent approach not only helps reduce perceived risks but also ensures that programs can continue moving forward,” Binkowski says.
As contractors look towards the future, the focus is on remaining nimble and investing in business strategies that can adapt to changing market conditions. Sawall emphasizes the importance of staying focused on client needs while investing in the business to provide excellent outcomes. “As we look toward the future, it’s important to stay laser focused on serving the needs and aspirations of our clients, many of whom are facing major challenges in their own organizations,” he says. “At the same time, we must remain nimble and invest in our business so we can continue to provide excellent outcomes for our clients and a great place to work for our employee-owners.”
Van Anne echoes this sentiment, highlighting the importance of continuous improvement and embracing cutting-edge technology. “For 2025 and beyond, we continue this focus while remaining dedicated to continuous improvement—embracing cutting-edge technology, building sustainably, investing in our workforce and, above all, ensuring the safety of everyone on site,” she says.
The Midwest construction sector is at a crossroads, where the path forward demands a delicate balance of innovation, sustainability, and strategic foresight. As contractors navigate these challenges, they are not just building structures; they are shaping the future of the region, one sustainable, efficient, and resilient project at a time.