Investment remains strong in mission‑critical sectors, but execution readiness is now the key differentiator

The US construction industry is returning to growth, driven by infrastructure and data center investment, but delivery constraints are now setting the pace according to Linesight’s latest Construction Market Insights: Americas report. Power access, planning requirements, and shortages in skilled MEP trades and contractor capacity are extending timelines and increasing risk.

Following a 2.7% contraction in 2025, US construction output is forecast to grow by around 1.1% in 2026 with an average annual growth of 2.1% through 2030. Growth is being driven by sustained investment in data centers, infrastructure, energy, and life sciences manufacturing, with demand concentrated in capital‑intensive programs supported by federal funding, AI-led digital expansion, and large-scale pharmaceutical investment. However, constraints around power availability, permitting, labor, and supply chains are extending timelines and reducing schedule certainty across major programs.

Supply chain conditions define the critical path

Supply chain conditions are now a primary program risk across the US, particularly for mission‑critical and high‑tech projects. While mechanical equipment lead times remain elevated but broadly stable, electrical infrastructure continues to be the most constrained with generators and medium‑voltage equipment defining delivery schedules. Supplier capacity is beginning to tighten across the supply chain shifting from a period of relative availability toward increasing constraint. Although investment in new or expanded manufacturing capacity may ease pressure later in 2026 and into 2027, vendor prioritization and securing access to production slots are now critical inputs to program planning and procurement strategy.

“Growth is returning to the US construction market, but the conditions required to deliver projects successfully have changed,” said Patrick Ryan, Executive Vice President of the Americas at Linesight. “Power access, labor availability, and long lead equipment are now central to schedule certainty. Clients that engage early with utilities and suppliers, and plan procurement and phasing realistically, are far better positioned to manage risk and protect outcomes.”

Construction inflation revised upward

Linesight has revised its 2026 US construction inflation forecast to 4.5% to 5.5%, up from its January outlook. The revision reflects the impact of conflict in the Middle East, which is adding renewed pressure to energy, freight, and logistics costs and feeding through to materials and equipment pricing. Tight labor markets, elevated subcontractor utilization, and sustained pressure in mechanical and electrical trades continue to keep costs elevated, reinforcing the need for targeted mitigation rather than uniform contingency assumptions.

Commodity pricing remains influenced by policy, energy, and logistics

Commodity markets continue to influence construction costs across the US, with pricing shaped less by cyclical demand and more by tariffs, energy costs, and logistics pressures.

• Copper: Prices rose 15% quarter-on-quarter in early 2026, driven by tariff-related buying, power infrastructure demand, and constrained mine supply.
• Aluminum: Prices increased 13% quarter-on-quarter, supported by tariffs, tighter supply, and higher energy costs.
• Steel: Price increases have been more moderate and remain driven by trade policy, domestic supply management, and import conditions rather than broad construction demand. Steel flat prices are forecast to rise 13% quarter-on-quarter.
• Diesel: Costs increased 11% quarter-on-quarter in early 2026 as geopolitical disruption tightened global supply, pushed through to transport and equipment pricing.

The Construction Market Insights: Americas – June 2026 report can be read in full here.

About Linesight
Linesight is a multinational consultancy firm with over 50 years' experience, providing cost, schedule, program and project management services to sectors including life sciences, commercial, data centers, high-tech industrial, residential, hospitality, healthcare and retail. Linesight’s specialist project teams, each with specific skills and experience, provide certainty in project delivery, greater cost efficiency and maximum value for money for their clients.

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