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 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.
For Hensel Phelps, this market reinforces the value of disciplined preconstruction planning, collaborative project delivery and clear-eyed market intelligence as the definitive blueprints for avoiding schedule delays across complex project environments. Success increasingly depends on reducing uncertainty before construction begins. Projects tied to essential capacity, resilience and mission-critical need to continue to move forward, but they must navigate more complex constraints. Add policy uncertainty, reflected in the FRED Economic Policy Uncertainty Index, and many owners are looking for stronger cost, schedule and funding confidence before moving forward.
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- That urgency is most visible in sectors where demand is tied to capacity, resilience and mission-critical need.
- They are also looking to strengthen their insights and partnerships around emerging power-generation and cooling technologies, driving a competitive advantage as they engage with hyperscalers and data center developers.
- Beyond serving the data center, this project plays a crucial role in the campus’s future infrastructure.
- Sami Alami is a managing director at Deloitte focused on creating value through tech- and AI-enabled operations and supply chain transformations, including the deployment of smart operations solutions for clients.
BLS employment projections, wage, and other data for related occupations not shown in the following table are available on the Data for Occupations Not Covered in Detail page. The median annual wage for this group was $59,540 in May 2025, which was higher than the median annual wage for all occupations of $50,980. Overall employment in construction and extraction occupations is projected to grow faster than the average for all occupations from 2025 to 2035. Workers in these occupations use a variety of resources to build and repair roads, homes, and other structures.
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 https://welcomelady.net/how-to-save-when-erecting-a-private-house.html 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.
- The show transforms Fortune’s trusted reporting into actionable, conversational, and entertaining insights for an emerging class of business leaders.
- “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.
- 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
- Join our team and build some of the most exciting and innovative projects around the world.
In this role, she leads the applied AI strategic growth offering, helping Deloitte’s largest IP&C clients create value through the implementation of AI and data. With close to three decades of consulting experience in global finance and information technology transformation programs, Michelle Meisels leads the engineering and construction practice and helps clients integrate digital technologies with organizational and process standard practices. Talk to one of our construction market experts and see how Dodge can sharpen your forecasts and help you grow. Built on data from 677,000+ tracked firms and 700k+ projects annually Dodge delivers five-year demand forecasts tailored to your product, channel, and territory, giving BPMs and distributors the precision to plan production, set targets, and size their addressable market.
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.
In August 2025, commercial and institutional planning activity increased by 30% year over year.14 They are increasingly leveraging digital tools, modular construction, and strategic partnerships to manage complexity and scale. By transforming macroeconomic uncertainty into a controllable variable, these organizations can model, hedge, and ultimately leverage tariff impacts for competitive advantage as trade policies evolve. His research and thought leadership have been cited in prominent media outlets, including Bloomberg, Forbes, CNBC, and the Urban Land Institute.
Recent spikes in commercial planning activity, following months of cautious inactivity, suggest that the market may be on the verge of moderate growth in construction spending despite ongoing uncertainty. They are also looking to strengthen their insights and partnerships around emerging power-generation and cooling technologies, driving a competitive advantage as they engage with hyperscalers and data center developers. Many large E&C companies are reassessing their project portfolios to align with these new priorities, investing in capabilities to compete for mega-projects such as data centers and advanced energy facilities. 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 Against this backdrop, E&C firms may consider focusing on four key trends when planning their growth strategies.
The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and https://real-apartment.com/a-little-about-the-construction-of-suburban-frame.html the competitive condition of the marketplace. Turner Construction Company announced that the First Quarter 2026 Turner Building Cost Index—which measures costs in the non-residential building construction market in the United States—increased to the value of 1530. Join our team and build some of the most exciting and innovative projects around the world. “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. NEW YORK, NY – Skanska, a leading 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.
For projects with timing flexibility, that means more re-pricing, re-scoping and re-sequencing before capital is committed. Elevated capital costs are raising hurdle rates for projects dependent on private debt or near-term refinancing. The WWIP is designed to accommodate future expansion, supporting industrial development and ensuring a resilient and expandable water and wastewater system. Beyond serving the data center, this https://vevobahis581.com/building-a-house-out-of-wood.html project plays a crucial role in the campus’s future infrastructure.
