This report provides a forward-looking analysis of the state, local, and education (SLED) architecture, engineering, and construction (AEC) market from 2025 through 2028. It examines bid volumes, spending trends, and funding drivers, including the long-term impacts of IIJA and the wind-down of ARPA stimulus. The report identifies market stabilization following recent declines, with modest growth projected as inflation eases and capital planning normalizes. It breaks down demand by project type, agency level, and geography, while highlighting risks tied to labor shortages, financing costs, and delayed projects. Strategic recommendations help firms plan pipeline development and prioritize resilient market segments.

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