2026 Trends in the Industry
As we look ahead to 2026, the insulation industry in New York is poised for a year of growth, innovation, and opportunity. From new legislation and energy-efficiency programs to continued demand across commercial, industrial, and residential sectors, contractors face both exciting possibilities and ongoing challenges. In this article, ICA Executive Board Members and industry leaders share their insights on what’s driving the market, where demand is increasing, and how union contractors can continue to thrive.
If you had to describe the industry’s biggest opportunity next year in one word or phrase, what would it be? Why?
“Owner Operators. Their ability to operate beyond a 2 year window will expire thus giving us the opportunity to see increased margin.”
- Al Duranti, Owner of Gateway Insulation, Treasurer of the Insulation Contractors Association of New York City
“Energy Efficiency Acceleration. With the Mechanical Insulation Energy Savings Program now signed into law, our industry has a unique opportunity to demonstrate its value as a proven, immediate solution for reducing energy waste and lowering carbon emissions. This legislation will drive new projects, expand demand for skilled labor, and position mechanical insulation as a priority in New York’s energy-efficiency strategy.”
- Donald A. Donnelly, Jr.
President of the Insulation Contractors Association of New York City
Executive Vice President of International Asbestos Removal, Inc.
What challenges will contractors or facility owners face most often in 2026 when it comes to insulation?
“The main challenge that we will continue to face as union contractors is an overabundance of non-union competition that has been growing rapidly over the years. With more and more jobs becoming open shop, we have been coming up with different ways to compete with non-union labor and will continue to do so.”
- Brian Aull, General Manager, IREX Atlantic Contracting
Are you seeing increased demand in certain sectors (commercial, industrial, data centers, manufacturing)? What’s driving that demand?
“From all indicators we believe that the New York commercial market will remain strong along with several infrastructure projects slated for later in the year. We also see that the demand for data centers will also be a driving force for our territory.”
- Chris Grando- COO IAR. Inc
Do you expect labor shortages, materials availability, or pricing to impact project timelines in 2026?
“Right now, everyone seems to be busy, and I anticipate that to continue through 2026. It is possible that this could impact project timelines if it continues to stay that way and proper manpower is not available.”
- Brian Aull, General Manager at IREX Atlantic Contracting
What do you expect to see on bids or scopes in 2026?
“In 2026, I expect the market to be driven by a wave of large-scale infrastructure work across both private and public sectors.
On the private side, Healthcare and University projects will lead the way, with several major new construction plans ready for the new year. We’ll also see continued vertical development, including additional towers in Hudson Yards, JPMC and further progress on WTC Tower 2.
Public work will ramp up as well, especially with new Correctional Facilities, the Bus Terminal and with the continued progress at JFK.
On the public-private side, casino developments will generate significant activity, and the NYCFC stadium will continue toward completion. Overall, 2026 is shaping up to be a strong year for big, complex, high-visibility projects.”
- Matthew Coyne, Chief Estimator at IAR, Inc. and ICA Executive Board Member & Trustee
Which material innovations or product types do you think will gain traction in 2026?
“Firestopping and life-safety systems will continue gaining momentum in 2026. With Local 12 pushing to take on electrical firestopping and GCs leaning toward single-source providers, the demand for integrated firestopping solutions is growing quickly. This focus on risk management, compliance, and streamlined scopes will make firestopping one of the more competitive and evolving product categories in the coming year.”
- Matthew Coyne, Chief Estimator at IAR, Inc. and ICA Executive Board Member & Trustee
Where do you see the biggest needs in workforce development for 2026?
“I think there will be a growing need in 2026 to provide a labor force that addresses the need for affordable housing. I think that there will be a substantial increase in the development of affordable housing and we will need to provide the labor necessary to perform this work at a competitive cost.”
- Tim Hartnett, Sr. Project Manager at Irex Atlantic Contracting
“We will always have the need for skilled Insulator mechanics to keep up with market demand, especially with some of these mega-structures being built as well as the push on energy efficiency retrofits.”
- Chris Grando- COO at IAR. Inc
What excites you the most about the direction the industry is headed?
“I’m excited that the industry is finally receiving the recognition it deserves for its critical role in energy conservation and sustainability. Between new legislation, expanded market awareness, and the growth of both commercial and residential opportunities—including the new residential wage rate—we are moving into a period of strong, steady growth that benefits contractors, workers, and building owners alike.”
- Donald A. Donnelly, Jr., President of the Insulation Contractors Association of New York City, Executive Vice President of International Asbestos Removal, Inc.
What’s one myth you wish we could eliminate from the industry?
One myth I would like to dispel is that the unionized workforce can’t compete with non-union. Unionized labor is better trained, safer and more efficient than non-union. There are also programs such as Residential Rates and Target Funds to help make union labor more competitive.
- Tim Hartnett, Sr. Project Manager at Irex Atlantic Contracting
That owners are the enemy of labor when in actuality we are partners and want the best for them.
- Al Duranti, Owner of Gateway Insulation, Treasurer of the Insulation Contractors Association of New York City
The insights from ICA members underscore a clear theme for 2026: the industry is moving into a period of strong, steady growth, fueled by legislation, skilled labor, and innovative materials. While challenges such as labor competition and project complexity remain, union contractors are well-positioned to lead the way with trained, efficient teams and integrated solutions. With energy efficiency, workforce development, and large-scale infrastructure projects on the horizon, 2026 promises to be a year of opportunity for contractors, building owners, and the communities they serve.