Education, Healthcare Projects Lift Dodge Momentum Index 3.7%

The Dodge Momentum Index climbed 3.7% above its September 2025 level, with education and healthcare projects leading the year-over-year gain, according to new data from Dodge.

The annual move signals a shift in which sectors are driving nonresidential construction planning. Data center development has dominated recent reporting cycles, absorbing capital, labor, and project slots. September's figures show that institutional building types — schools and hospitals — are reasserting themselves in the planning pipeline.

"Strength outside the data center boom helped lift the Dodge Momentum Index 3.7% above its September 2025 level," the data provider stated in its monthly release.

What's behind the September gain?

Education and healthcare projects accounted for most of the 3.7% year-over-year lift. The release imagery features Duke Raleigh Medical Center, a hospital project representative of the wave of healthcare facilities now moving through pre-construction planning.

Two institutional sectors carried the index:

• Education facilities, including K-12 capital projects and higher education campus renewals
• Healthcare buildings, spanning hospital expansions, medical office buildings, and outpatient centers

How should the index be read?

The Dodge Momentum Index measures nonresidential building projects in their planning stage. Movements in the index lead groundbreakings by several months, giving contractors, architects, and building product suppliers an early read on where the next construction cycle is forming. A sustained reading above the prior-year level typically signals a thickening backlog across general contractors, specialty trades, and material manufacturers.

What does this mean for design firms and contractors?

Architecture practices with established education and healthcare portfolios stand to benefit first. These project types reward institutional client relationships, code expertise, and familiarity with public procurement — advantages that favor established firms.

General contractors holding education and healthcare backlog should see RFP activity accelerate as planning-stage projects graduate to design development. Material suppliers in interior finishes, medical-grade HVAC, and classroom equipment can expect order lead times to extend.

What role do data centers play?

The September data point is significant because the gain came from sectors other than data centers. The hyperscale data center build-out has absorbed substantial quantities of steel, concrete, electrical equipment, and skilled labor. The fact that education and healthcare planning grew 3.7% on a year-over-year basis — with data centers still active in the pipeline — points to a broader nonresidential expansion, not a simple rotation from one hot sector to another.

For school district and health system owners, the September reading carries a strategic signal. Competition for design talent and contractor capacity will tighten as planning-stage projects graduate to construction. Owners that have not yet commissioned planning studies should expect longer procurement timelines and firmer pricing through the next construction cycle.

The Dodge Momentum Index's next reading will be a critical barometer for the sector. If education and healthcare planning continues to outpace the prior year, the next construction cycle will look materially different from the data-center-driven pattern of recent reporting periods.