See a detailed construction outlook by sector on Page 35
An anticipated increase in private sector projects is expected to outweigh decline in public sector infrastructure spending. Forecasted public sector spending will be significantly influenced by the availability of State of Alaska funding to unlock federal transportation construction dollars. One of two large North Slope development projects will move into production this year, reducing overall oil and gas construction spending. Healthcare-related spending reflects several large projects, notably pursued by Alaska’s Tribal Health Organizations, and a wide range of utility infrastructure work is planned for the coming year (broadband, water/sanitation, electrical).
Economic trends show 2026 a year of expansion
January 2026
Alaska’s 2026 Spending Forecast Construction
Energy, mining sectors again
drive momentum As Alaska heads through 2026, the state’s economic picture is defined less by dramatic swings and more by strategic positioning. According to the January 2026 issue of Alaska Economic Trends , published by the Alaska De - partment of Labor and Workforce De - velopment, the state is forecast to add 3,000 jobs this year — a modest 0.9% increase — but the underlying forces shaping that growth are anything but modest. Oil, mining, health care, construc - tion, transportation and major federal investments are aligning to support expansion. At the same time, demo - graphic pressures, federal restructur - ing and fiscal constraints are reshap - ing how and where Alaska grows. For Alaska’s trade and industry leaders, 2026 is less about whether growth will occur — and more about how prepared we are to capture it. The energy and mining sectors are again driving momentum. Oil and gas employment is projected to increase by 1,000 jobs in 2026, an 11% jump, as the Pikka development moves into produc - tion and activity continues at Willow. After bottoming out in 2021, oil and gas employment has steadily climbed back toward pre-pandemic levels. Mining continues its steady and durable expansion. High gold pric - es and a renewed federal emphasis on domestic mineral production have bolstered confidence. The Manh Choh Resource Development Claims Center Stage
2026 ALASKA CONSTRUCTION SPENDING FORECAST SUMMARY ($MILLION)
CONSTRUCTION SPENDING FORECAST
$3,765 $1,400 Total Spending
% of Total Spending 56% 21%
Category
PRIVATE SECTOR $3.8 BILLION 56%
PUBLIC SECTOR $2.9 BILLION 44%
Private Construction Spending Oil and Gas Utilities Residential Hospitals/Health Care Mining Other Basic lndustry Other Industrial/Commercial Public Construction Spending Airports, Ports/Harbors, Railroad Highways and Roads National Defense Education Other State and Local Government Other Federal Government
Photo Courtesy Kinross Alaska Alaska’s mining industry continues to expand as the price of gold hovers near a record $5,000 per ounce.
$750 $430 $280
11% 6%
mine near Tetlin is ramping up pro - duction, and advanced exploration continues at projects such as Graphite One near Nome and the Upper Kobuk Mineral Projects in the Ambler district. Recent federal policy shifts — in - cluding reopened acreage in the Arc - tic National Wildlife Refuge’s Coastal Plain and support for critical minerals — signal a more extraction-friendly environment. However, permitting, environmental review and capital timelines mean that even with polit - ical alignment, major projects remain multi-year undertakings. For contractors, suppliers and lo - gistics firms, the message is clear: upstream activity is building a longer runway for industrial demand. Construction and Transportation: Infrastructure in Motion Construction surged in 2024 and
2025, and while growth moderates in 2026, it remains strong. The sector is forecast to add 700 jobs statewide, supported by: n North Slope oil field development n Federally funded transportation projects n The nearly $400 million deep - water port expansion in Nome n Military base improvements n Western Alaska storm recovery efforts Transportation, warehousing and utilities will add another 600 jobs, benefiting from both infrastructure projects and Alaska’s enduring role as a global cargo crossroads. Ted Ste - vens Anchorage International Airport remains one of the busiest cargo air - ports in the world, and new ware - housing and sorting facilities contin -
4% 3% 3% 8% 44% 14% 10%
$190 $215 $500 $2,945
TOTAL SPENDING $6.7 BILLION
$900 $690 $515 $200 $440 $200
8% 3% 7% 3%
TOTAL
$6,710
100%
CONTINUED on PAGE 34
Special thanks to Wheelhouse 20/20 for use of their photographs in this publication. Prepared by McKinley Research Group for the Associated General Contractors of Alaska/Construction Industry Progress Fund.
ASSOCIATED GENERAL CONTRACTORS OF ALASKA WWW.AGCAK.ORG
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THE LINK: The Official Magazine of the Alaska Support Industry Alliance | SPRING 2026
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