Elections Have Consequences: Why the Construction Industry Should Pay Attention to the 2026 Midterms
From infrastructure investment and workforce development to energy policy and economic competitiveness, the decisions made in Washington, Raleigh and Columbia will help shape the future of construction across the Carolinas.
Construction is a business built on long-term thinking. Projects are planned years in advance, investments are measured in millions or billions of dollars, and decisions made today can influence communities for generations.
Politics operates on a different calendar, but its consequences can be just as lasting.
On November 3, voters across North Carolina and South Carolina will head to the polls for the 2026 midterm elections. While national attention will focus on control of Congress, the outcomes will have important implications for the construction industry, regional economic development and the long-term competitiveness of the Carolinas.
For contractors, developers, engineers, architects, suppliers and construction industry professionals, elections are more than political contests. They help determine the regulatory environment, public investment priorities, workforce policies and economic conditions in which businesses operate.
Construction may be one of the clearest examples of how public policy becomes economic reality.
A highway project begins with a funding decision. A manufacturing facility depends on infrastructure, permitting and economic conditions. A data center requires reliable power, water resources and local approvals. A growing construction company needs a skilled workforce, predictable regulations and confidence in future demand.
Each of these issues intersects with government policy.
The Big Picture: What’s at Stake for Construction?
The construction industry has good reason to pay attention to the policy debates surrounding the 2026 elections. Six major issues stand out.
Infrastructure investment and fiscal priorities
Federal and state governments play significant roles in financing highways, bridges, ports, airports, water systems, schools and public facilities.
The next Congress and newly elected state leaders will influence how infrastructure programs are funded, prioritized and implemented. Decisions involving federal transportation programs, state capital budgets and local infrastructure financing can directly affect construction opportunities.
For the Carolinas, where population growth and industrial development continue to create infrastructure demands, sustained investment and effective project delivery are especially important.
Workforce development and labor policy
Few challenges are more persistent for construction companies than finding and retaining qualified workers.
According to Carolinas AGC’s 2026 Construction Outlook, more than 90% of responding North Carolina contractors reported difficulty filling craft and salaried positions.
The elections will influence policies involving career and technical education, apprenticeships, immigration, workforce participation, labor regulation and training investments.
The fundamental challenge is straightforward: The Carolinas cannot fully capitalize on their construction and economic development opportunities without enough skilled people to execute the work.
Energy, power infrastructure and economic development
The rapid expansion of data centers, advanced manufacturing, electrification and industrial automation is placing unprecedented attention on energy availability.
Power generation, transmission infrastructure, grid reliability and utility investment are increasingly central to economic development decisions.
Political leaders will face competing priorities involving energy costs, reliability, environmental considerations, permitting and long-term capacity.
For the construction industry, these decisions can influence not only the volume of power-related projects but also whether major private investments move forward.
Taxes, tariffs and regulatory certainty
Construction is a capital-intensive industry that operates on relatively thin margins. Changes in tax policy, trade rules, material tariffs, interest-rate-sensitive economic conditions and regulatory requirements can materially affect project feasibility.
Contractors must account for uncertainty in material costs, labor availability, financing and project schedules.
While political candidates may differ on the appropriate balance between regulation, taxation and economic incentives, businesses benefit from understanding how proposed policies could affect investment decisions and project execution.
Housing affordability and community growth
North Carolina and South Carolina continue to experience development pressures associated with population growth, expanding metropolitan areas and industrial investment.
Housing affordability, zoning, land-use regulations, infrastructure capacity and development approval processes are increasingly important policy issues.
The challenge extends beyond residential construction. Employers need workers who can afford to live near jobsites and business facilities. Communities need roads, schools, utilities and public services that keep pace with growth.
Permitting and project delivery
Time is money in construction.
Environmental reviews, land-use approvals, permitting requirements and public procurement procedures can have significant effects on project schedules and costs.
The debate over permitting reform involves legitimate considerations on both sides: accelerating investment and construction while maintaining appropriate environmental, safety and community protections.
Finding effective approaches to these competing priorities will remain important regardless of which party controls government.
Key Races to Watch Across the Carolinas
Several high-profile races will help determine the political direction of both states and their representation in Washington.
North Carolina: A Closely Watched U.S. Senate Contest
North Carolina’s open U.S. Senate seat is among the most closely watched contests nationally.
Former Democratic Governor Roy Cooper faces former Republican National Committee Chairman Michael Whatley in the race to succeed retiring Republican Senator Thom Tillis. Libertarian Shannon Bray and Green Party candidate Michael Dublin are also on the ballot.
The outcome could influence the balance of power in the U.S. Senate and, consequently, federal decisions involving infrastructure spending, tax policy, energy development and regulation.
Cooper has emphasized affordability, economic development and his record of bipartisan cooperation as governor. Whatley has emphasized public safety, conservative policies and alignment with President Donald Trump’s agenda. The candidates have also addressed disaster recovery and the federal government’s role in responding to Hurricane Helene.
Beyond the Senate race, North Carolina voters will elect members of Congress and the General Assembly. State legislative races will influence transportation funding, economic development incentives, education and other priorities important to construction.
The state also has consequential judicial elections, including a North Carolina Supreme Court contest between incumbent Democrat Anita Earls and Republican Sarah Stevens. Judicial decisions can influence the interpretation of laws governing businesses, development and public policy.
South Carolina: New Leadership and Congressional Representation
South Carolina voters face significant decisions in 2026, including selecting a new governor.
With Governor Henry McMaster term-limited, Republican Attorney General Alan Wilson and Democratic state Representative Jermaine Johnson are the major-party candidates. Green Party candidate Walid Hakim and United Citizens Party candidate Michael Addison are also on the ballot.
The governor’s office plays a significant role in shaping South Carolina’s economic development strategy, state agency priorities, infrastructure investments and relationships with major employers.
For an industry closely connected to economic development, the transition in leadership is particularly relevant.
South Carolina also has a closely watched U.S. Senate contest between Republican incumbent Darline Graham and Democrat Annie Andrews, following the death of longtime Senator Lindsey Graham earlier this year. Constitution Party candidate Mark Hackett and Libertarian Kasie Whitener are also on the ballot.
Voters will additionally determine representation in the U.S. House, South Carolina House of Representatives and several statewide offices.
While the highest-profile races attract the most attention, state legislative and local elections can have equally direct consequences for the construction industry.
Why State and Local Elections Matter Just as Much
National politics tends to dominate the headlines, but many of the decisions affecting construction companies are made much closer to home.
State legislators approve budgets, shape transportation policy, establish education funding priorities and consider regulatory changes.
County councils and municipal governments influence zoning, land development, infrastructure planning, property taxation and local economic development.
School boards and education officials help determine priorities for career and technical education, which can influence the future construction workforce.
Consider the practical implications.
A county’s decision to expand water and wastewater capacity can unlock new industrial development. A transportation funding decision can improve access to a growing employment center. A change in zoning policy can accelerate or constrain housing construction. Investment in technical education can help address the industry’s long-standing workforce shortage.
These decisions rarely generate the attention of a U.S. Senate race, but their effects can be substantial.
An Industry with a Significant Stake in the Future
The construction industry is central to the Carolinas’ economic growth.
The region is attracting investment in manufacturing, logistics, healthcare, data centers, energy infrastructure and other capital-intensive sectors.
According to Carolinas AGC’s 2026 Construction Outlook, contractors in both states reported optimism in several key markets, particularly healthcare, data centers, power and water infrastructure. At the same time, workforce shortages, rising costs and economic uncertainty remain significant concerns.
This combination of opportunity and uncertainty underscores the importance of public policy.
The industry’s future will depend on more than the availability of projects. It will also depend on whether the region can provide the infrastructure, workforce, energy resources and business environment necessary to support sustained investment.
Political leadership does not determine every economic outcome, but it can influence the conditions that encourage or discourage investment.
Beyond Politics: The Importance of Being an Informed Voter
The construction industry includes business owners, executives, skilled tradespeople, engineers, project managers and professionals with a wide range of political perspectives.
There is no single political viewpoint that represents everyone working in construction.
What unites the industry is a shared interest in safe jobsites, economic opportunity, responsible investment, workforce development and successful project delivery.
As the midterm elections approach, construction professionals can benefit from examining candidates’ positions on issues affecting both their communities and their businesses.
Understanding the differences between competing policy proposals is essential. A promise to increase infrastructure investment, for example, raises important questions about funding, fiscal priorities and implementation. Proposals to reform permitting should be evaluated in terms of both efficiency and public protections. Workforce policies should be considered in light of labor availability, training needs and employer responsibilities.
Political participation extends beyond election season. Industry associations, chambers of commerce, community organizations and individual businesses all have opportunities to engage in public policy discussions and communicate the practical implications of government decisions.
Constructive engagement with elected officials, regardless of party, can help ensure that policymakers understand the realities of delivering capital projects and operating construction businesses.
Building the Future Requires Looking Beyond Election Day
Elections are moments in time. Their consequences often extend for years.
The roads, bridges, hospitals, schools, manufacturing facilities, data centers and energy infrastructure being planned today will help define the Carolinas of tomorrow.
Many of these projects will outlast the political administrations under which they were conceived, funded or approved.
That reality creates an important connection between construction and public service.
Both involve decisions that affect people, communities and future generations. Both require balancing immediate needs against long-term priorities. And both are most effective when planning, accountability and execution are taken seriously.
As North Carolina and South Carolina approach the November 3 midterm elections, the construction industry has an opportunity to consider the broader relationship between public policy and the built environment.
The people elected in November will not be the ones pouring concrete, installing electrical systems, erecting steel or managing jobsites. But their decisions can influence what gets built, where it gets built, how projects are delivered and whether the Carolinas remain competitive for the next generation of investment.
For an industry whose work will shape the region for decades, understanding those decisions matters.
