Merlo America: Areas Set to See the Most Construction Growth

New data from equipment manufacturer Merlo America and predictive buyer intel platform  BiltData.ai reveal the five US states set to see the most growth in construction by 2031.

Their Construction Spending and Data Center Demand in the U.S. by 2031 report  forecasts that California, Texas, Florida, New York and New Jersey will represent around 42% of US construction spending by 2031. 

The report also reveals that the US’ 10 most metropolitan areas will collectively account for more than 33% of the nation’s construction spending.

US Metropolitan areas set to see most growth

In the lead, The New York-Newark-Jersey City metropolitan area is forecast to spend US$230bn by 2031. 

The area tops the list despite New York’s current year-long moratorium on permits for the construction of data centres of 50 megawatts – a major driver of industry growth.

The other metropolitan areas to make the list are:

• Los Angeles-LOng Beach-Anaheim, CA: nearly US$150bn
• Chicago-Naperville-Elgin, IL-IN-WI: just over US$100bn
• Dallas-Fort Worth-Arlington, TX: more than US$75bn
• Houston-The Woodlands-Sugar Land, TX: more than US$75bn
• Philadelphia-Camden-Wilmington, PA-NJ-DE-MD: around US$75bn
• Washington-Arlington-Alexandria, DC-VA-MD-WV: around US$75bn
• San Francisco-Oakland Berkeley, CA: around US$75bn
• Atlanta-Sandy Springs-Alpharetta, GA: more than US$50bn
• Phoenix-Mesa-Chandler,AZ: more than US$50bn.

By how much will construction grow?

The report forecasts US construction spending to increase by US$600bn from US$2.22tn  in 2026 to US$2.85tn by 2031 – the equivalent  of expanding by the size of the Texas construction economy. 

Looking at each sector, the report projects that by 2031 construction spending will hit 

• US$1.026tn in residential construction
• US$74bn in commercial construction
• US$684bn in industrial construction, including manufacturing and data centre development
• US$399bn in infrastructure investment by 2031. 

Merlo America’s report is designed to equip construction companies with the insight to make decisions for the future rather than reacting to a shifting market.

"Every business in our industry is making decisions today that will shape the next five years. Whether you're investing in equipment, expanding a branch or growing a service team, understanding where demand is heading gives you a real advantage," says Cole Renken, General Manager of Merlo America.

"The value of this report lies in helping businesses move from reacting to planning. Understanding where demand is expected to grow gives decision makers the confidence to invest in the right markets and position equipment more effectively, ultimately supporting them to effectively plan for sustainable growth."

The rise of AI and cloud computing

The report also reviews the implications of AI on construction demand.

It forecasts that the top 12 metropolitan markets will account for nearly 73% of all US data centre capacity by 2023, driven by AI, cloud computing and digital infrastructure demand.

According to the report, the rise of AI will create more sites to prepare, an increase in related infrastructure and more equipment needed on the ground. It forecasts markets including Dallas-Fort Worth, Washington, D.C., Chicago and Phoenix to remain among the US’ most active technology-driven construction markets. 

“AI is accelerating investment in data centres and infrastructure, but the bigger opportunity is understanding where that work is happening. Our goal is to help contractors, dealers and rental companies move beyond the headlines by turning market data into practical insight they can use to make smarter decisions about where to invest and grow,” says Nick Mavrick, CEO of BiltData.ai.

Merlo America’s partners

BiltData.ai: Merlo America uses market intelligence from BiltData.ai to strategically guide its dealer network expansion, identifying high-growth metro areas for construction, agriculture, and data center demand through 2030. This data-driven approach helps dealers target the fastest-growing markets nationwide.

Finke Equipment: Merlo America expanded its Northeast dealer network by partnering with Finke, a family-run company serving contractors since 1977. Finke now offers Merlo's full telehandler lineup, TreEmme forestry equipment, and MerloMobility telematics across three New York and Vermont locations, already seeing strong interest from solar energy and rental customers.

Brooks Tractor: Merlo partnered with this 80-year-old, 7-facility Wisconsin dealership which has become a full-service Merlo provider. The collaboration targets Midwest farmers, forestry professionals, and contractors, with Brooks showcasing Merlo equipment at events like Wisconsin Farm Technology Days and World Dairy Expo, emphasising hands-on, family-based customer support.

First Citizens Bank Equipment Finance: Merlo America signed a comprehensive vendor finance agreement with First Citizens Bank, giving customers dedicated leasing and lending options for purchasing new Merlo construction and agricultural equipment across North America, making it easier for buyers to acquire telehandlers and related machinery.

A&I Products: While not a direct Merlo dealer partnership, A&I Products operates in the same equipment ecosystem as a leading aftermarket parts manufacturer and distributor for agricultural, turf, and industrial machinery since 1980, complementing Merlo's dealer and finance network within trade coverage of the industry.