Linesight predicts steady growth ahead as data centers, infrastructure, and semiconductors continue to strengthen the US outlook

Linesight today released its latest Construction Market Insights report, signaling a resilient outlook for the US construction industry after a softer 2025. While output is projected to have contracted by 2.7% in 2025 following 6.5% growth in 2024, momentum in data centers, transport infrastructure, semiconductors and advanced manufacturing is set to drive steady growth in 2026. Looking ahead, the US construction industry is expected to grow at an average annual rate of 1.9% from 2026 to 2029.

AI investment sustaining US economic growth

US GDP growth is forecast at 2.0% in 2025 and 2.1% in 2026, supported by AI-driven productivity and fiscal stimulus. AI investment contributed 1.1% to GDP growth in the first half of 2025. The Bureau of Economic Analysis reported 4.3% annualized GDP growth in Q3 2025, driven by consumer spending, exports, and government expenditures. This performance may improve the final GDP outlook for 2025.

Mission-critical sectors continue to strengthen despite a challenging 2025

Tariffs and skilled labor shortages weighed on project delivery throughout 2025, yet demand across mission-critical sectors continued to strengthen. The data center market reached US$3.7bn in spending in August 2025, up 25% year over year, while energy and utilities grew an estimated 4.1% in 2025.

Persistent labor and materials pressure expected to carry into 2026

Construction inflation remained elevated, reaching 3% to 4% in 2025, driven by tight labor availability, subcontractor scarcity, and strong demand for mechanical and electrical packages. These pressures are expected to keep inflation in the 4% to 5% range in 2026.

“As mission-critical projects accelerate, the organizations that plan early will be best positioned to succeed,” said Patrick Ryan, Executive Vice President of the Americas, Linesight. “Power constraints, labor shortages, and equipment delays require proactive strategies. Early contractor engagement and a clear procurement roadmap can significantly reduce exposure to disruption.”

Key materials show volatility as demand and tariff impacts evolve

• Copper: Prices are expected to have increased 5% in Q4 2025 and are projected to continue rising into early 2026, driven by strong manufacturing demand and global supply disruptions.
• Steel: Volatile due to tariff impacts and fluctuating market conditions
• Aluminum: Prices are firming as tariffs tighten supply and are forecast to have increased 2.4% in Q4 2025
• Cement: Prices remain elevated due to ongoing infrastructure demand and the cost of environmental compliance requirements
• Lumber: Volatile due to supply disruptions and tariff uncertainty and are projected to increase by 2.5% in Q4 2025

Lead times stabilize, but trade related risks remain

Lead times have improved as regional sourcing expands after significant front-loading in early 2025, and suppliers increase production capacity. However, global pressures continue to affect delivery certainty. Overseas shipping timelines remain unpredictable, and rising demand in data centers and manufacturing may push some sourcing back to international suppliers, adding further variability. To protect schedule certainty, clients should prioritize long-term supplier agreements, diversified sourcing, standardized specifications, and data-driven forecasting.

The 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 multiple 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 faster project delivery, greater cost efficiency, and maximum value for money for their clients. For further information, please visit https://www.linesight.com.

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