Skanska, a global construction and project development firm, has released its Summer 2026 Construction Market Trends Report, examining the forces shaping the U.S. construction market as the industry enters the second half of the year.
The report finds that underlying construction demand remains stronger than anticipated, but growth continues to be highly concentrated across a handful of sectors, with data centers, infrastructure, power generation, advanced manufacturing, pharmaceutical production and select healthcare markets attracting significant capital investment.
"As we move into the second half of 2026, the construction market is being defined less by concerns for lack of demand and more by the industry's capacity to deliver," said Steve Stouthamer, executive vice president of project planning at Skanska USA Building. "Data center, power, advanced manufacturing and life sciences investment continues to create significant opportunities, but labor availability, power constraints, equipment lead times and material costs are continuing to challenge owners and contractors. In this environment, advanced planning and early procurement are increasingly critical to keeping projects on schedule and managing cost exposure."
The report highlights an increasingly uneven market, with robust project pipelines in technology and infrastructure-related sectors contrasting with comparatively subdued activity in office, retail, higher education and other commercial development. Healthcare and higher education markets remain more mixed nationally, with activity varying by regional population growth and policy. Financing conditions are also continuing to pressure certain private developments, while sectors supported by major infrastructure and technology investment maintain stronger momentum.
With experience across diverse sectors nationwide and globally, Skanska brings a unique perspective on emerging industry trends, with key report highlights including:
Construction activity remains strong but increasingly concentrated across high-growth sectors.
• Data centers, infrastructure, power generation, advanced manufacturing, pharmaceutical production and select healthcare markets continue to attract significant investment, while office, retail, higher education and other commercial sectors remain comparatively subdued.
• Data center construction remains the fastest-growing segment of U.S. commercial construction, with data centers accounting for approximately 5.4 percent of private nonresidential building construction spending in 2025, up from approximately 1.7 percent in 2019.
• Annual U.S. data center construction spending is expected to exceed 100 billion by 2030, more than doubling current levels.
Capacity constraints across labor, power and equipment continue to challenge project delivery.
• Power availability, skilled labor, municipal concerns and equipment lead times remain key constraints on data center development and other high-growth sectors.
• Structural steel lead times are currently 40–50 weeks in some markets, while HVAC equipment lead times can reach 52 weeks.
• Demand for generators of 2 MW and larger continues to absorb available manufacturing capacity.
Construction costs remain under pressure from elevated demand and supply constraints.
• Prices for larger generators in the 100 kW to 4.5 MW range are expected to increase 8–10 percent in 2026, while HVAC equipment pricing is expected to rise 10–12 percent, depending on the manufacturer.
• Strong demand for technical MEP trades and specialized materials continues to drive higher pricing in markets with significant data center, power, life sciences and advanced manufacturing activity.
• In geographic markets seeing high growth from Tech Sectors, owners should anticipate construction pricing escalation to remain above historical averages over the next year.
Materials and metals markets remain highly dynamic amid tariff and geopolitical uncertainty.
• Steel, copper and aluminum prices remain elevated, with changes to Section 232, Section 301 and other tariff policies creating continued uncertainty across construction supply chains.
•Structural steel demand remains particularly strong due to data center and large-scale high-tech and manufacturing construction.
• Higher fuel and energy costs continue to put pressure on transportation and petroleum-based construction materials.
• Ongoing retaliation tariffs between the U.S. and Canada are expected to influence lumber, cement, steel and aluminum costs.
• While near-term trade flows remain largely stable, evolving trade policies continue to create uncertainty for longer-term procurement and investment decisions.
Early planning and procurement are increasingly critical to managing cost and schedule risk.
• Owners and contractors should closely monitor local, regional and national labor and supply chain capacity and consider early purchasing of long-lead materials and equipment.
• Evaluating structural options earlier in the design process can help project teams navigate supply constraints, particularly in markets with significant data center and advanced manufacturing activity.
• Skanska's Strategic Supply Chain Team continues to monitor manufacturer capacity, tariffs and market conditions to help project teams anticipate potential cost and schedule impacts.
On Thursday, Sept.10, 2026 Skanska will host a public webinar, “Materials Matter: Mass Timber, Steel Costs and the Future of Construction,” which will bring together Skanska leaders and industry experts to examine the market conditions shaping construction costs and material availability, with a focus on mass timber, steel and metals. The discussion will explore the factors influencing current and future pricing, lead times and the broader construction market outlook. Learn more and register HERE.
