Get visibility into materials, systems, https://home365.net/robotic-construction-a-new-area-of-investment.html and product requirements before bids are issued. Know where construction demand is heading by market, type, and territory Market share and distribution network visibility across building product categories, by geography and channel.

To fully capitalize on the digital dividend, firms should institutionalize data governance frameworks, invest in continuous workforce development, build ecosystem partnerships, and embed digital performance metrics throughout project delivery. As E&C firms plan for digital initiatives through 2026, technologies like cloud-native digital twins and AI agents are expected to become standard. Despite these advanced technologies, poor-quality data continues to frequently undermine the reliability of analytics and AI solutions,20 reducing the return on investment and limiting both operational and competitive advantage. Projects in early planning stages could be affected by signs of evolving https://allnews-24.com/real-estate government policies or economic slowdown. Looking ahead to 2026, the outlook for commercial construction activity is cautiously optimistic, with data center and energy infrastructure expansion providing continued momentum.

• “Failing to do so will worsen labor shortages, especially in certain occupations and regions, placing further upward pressure on labor costs,” ABC Chief Economist Anirban Basu warned in a statement.
• The WWIP is designed to accommodate future expansion, supporting industrial development and ensuring a resilient and expandable water and wastewater system.
• The show transforms Fortune’s trusted reporting into actionable, conversational, and entertaining insights for an emerging class of business leaders.
• By 2031, 41% of construction workers are expected to retire, while only 10% of current workers are under 25, signaling a critical shortage of younger talent entering the field.24 Interest in construction careers remains tepid, with only 7% of potential job seekers considering this field.
• The result is not a single construction cycle, but a sorting process between projects that must progress forward and projects with the flexibility to wait.
• Elevated costs are also affecting both ongoing and future projects—with an 88.2 % YoY increase in project abandonment activity for August 2025; this has led developers to revisit budgets and adjust financial projections.9 Industry research indicates that increased tariffs on building materials like lumber could pose additional challenges to affordability.10

Deloitte Insights publishes original articles, reports and periodicals that provide insights for businesses, the public sector and NGOs. He understands and has insight into the trends that can impact highly engineered product manufacturing companies and help drive performance improvements. AI-driven tools will optimize designs, automate calculations, and manage schedules in real time, enabling smarter and faster project outcomes. Although the E&C industry has historically been conservative in adopting new digital technologies, AI is expected to drive a profound transformation over the next few years. Strategic M&A, especially those that strengthen digital capabilities, offer additional pathways to growth and competitiveness.

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As part of a confidential data center campus build-out, Hensel Phelps constructed a standalone water and wastewater infrastructure project, providing a sustainable and scalable solution for both the data center and the broader community. In these markets, the need to build is often clearer than the choice to wait. The Honouliuli WWTP Phase 1C – Headworks, HRBC, Solids Process and Miscellaneous Improvement project addresses long-term growth, resiliency, energy efficiency and environmental stewardship for the City and County of Honolulu. Projects tied to essential capacity, resilience, national security and operational need are more likely to advance despite market headwinds, while projects with greater timing flexibility face a higher bar before moving forward. For owners, navigating this split market requires robust preconstruction risk management strategies to combat construction material cost escalation and skilled labor shortages to actively mitigate uncertainty before it impacts the bottom line.

The aerospace and defense sector is entering a new phase of expansion, driven by advancements in AI, digital sustainment, and increasing demand across both commercial and defense markets Renewed strategic focus and targeted technology investments could be essential to maintaining a competitive edge in 2026 The authors would like to thank Anuradha Joshi for her key contributions to this report, including research, analysis, and writing. Additionally, the migration of engineering talent to https://alcitynews.com/design-of-capital-construction-objects-stages-and.html technology firms—driven by demand for tech-enabled skills—is intensifying competition for skilled workers.25 Leading organizations are deploying technologies such as AI-driven analytics, real-time project management platforms, and connected jobsite solutions to streamline operations, enhance decision-making, and stand out in a competitive landscape.

By combining market intelligence with rigorous planning and execution expertise, Hensel Phelps helps clients move critical projects forward with greater confidence, certainty and speed. In megaproject markets, the pressure is sharper as data centers, semiconductor facilities and advanced manufacturing compete for the same specialty trades. Much of that will go toward AI, including chips and data centers. Access more insights for the aerospace & defense, chemicals & specialty materials, engineering & construction, mining & metals, oil & gas, power & utilities, and renewable energy sectors.

Case Study: Confidential Data Center and Water/Wastewater Infrastructure Project (WWIP)

Persistent labor shortages, rising material costs, and economic uncertainty continue to challenge firms’ resilience. The current administration has announced plans for workforce reform33 and is directing all federal workforce programs to modernize, integrate, and realign to address critical workforce needs in emerging industries.34 Immigration policies will likely remain a critical factor, as nearly 10% of construction and extraction workers are foreign-born, according to the US Bureau of Labor Statistics.29 Changes in visa regulations and immigration policies could further restrict labor availability in the industry. By 2031, 41% of construction workers are expected to retire, while only 10% of current workers are under 25, signaling a critical shortage of younger talent entering the field.24 Interest in construction careers remains tepid, with only 7% of potential job seekers considering this field.

Global Human Capital Trends

He has over 20 years of experience in developing data-driven insights and translating complex market trends into compelling thought leadership across multiple sectors and geographies. ✦ Quarterly construction activity reports across 35 U.S. metro markets ✦ Access county-level building stock data from 1970 with five-year forecasts

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As the largest general contractor in the country, Turner is a leader in all major market segments, including healthcare, education, commercial, sports, aviation, pharmaceutical, retail and green building. Meanwhile, timing-flexible projects face ongoing headwinds from capital costs, construction material cost escalation and uncertainty. That urgency is most visible in sectors where demand is tied to capacity, resilience and mission-critical need. Public infrastructure, power and data capacity continue to progress, while financing-sensitive private development faces greater scrutiny. Farley also warned the U.S. has overlooked the labor needed to build and sustain data centers and manufacturing facilities.