Civil engineering market remains resilient, but pressure is increasing

Pressure in the market is increasing

At the same time, it is becoming increasingly clear that available capacity is not keeping pace with demand, largely due to persistent labour market shortages. This requires requiring both clients and contractors to make sharper choices on prioritisation, planning, and collaboration. According to the barometer, capacity constraints are the main factor limiting further growth and delivery. They are also contributing to rising cost pressure across the sector.

The barometer highlights the following in the first quarter of 2026:

• Project pipeline – The civil engineering sector continues to show a positive market outlook. Demand remains high, and project pipelines are robust, providing contractors with a solid foundation of work for the years ahead. At the same time, contractors are becoming more selective in the projects they pursue and the conditions under which they are willing to deliver them.
• Capacity – Available delivery capacity remains constrained. Although the availability of staff and equipment is gradually improving, this is still insufficient to fully absorb demand. In short, labour market shortages continue to limit delivery capacity.
• Costs – Cost developments have stabilised over the past year, following the sharp increases seen in 2022 as a result of the war in Ukraine. However, overall price levels remain materially higher than they were before 2022.

Insights grounded in data and analysis

PwC publishes the barometer to contribute to the public debate on the choices the Netherlands must make. The country faces a significant infrastructure challenge that cannot be addressed at all at once, given constraints on budgets, physical and environmental space, and labour market capacity. Through data and analysis, we aim to bring greater transparency to complex issues, inform the debate, and help identify solutions.