In the first half of 2026, development in the USA showed inconsistent progress, as material costs continued to rise and only facilities with the highest returns were realised. This has led to a boom in data centres, energy infrastructure, advanced manufacturing, and pharmaceutical production, while office, retail, and university properties lag significantly at a national level. A major reason for this is ongoing tariff policies, as highlighted in a report by Skanska.
Despite this sectoral differentiation, material supply chains are operating at full capacity, Tom Park, Vice President for National Strategic Supply Chains at Skanska, told the Commercial Observer. He describes the market as a mix of 'hot and warm', with project activities in data centres, semiconductors, and life sciences being particularly prominent.
Rising demand and delivery times
There is 'unprecedented demand' in the mechanical, electrical, plumbing, and steel sectors, leading to extended delivery times and rising costs. Factors causing these supply chain bottlenecks include Section 338 tariffs on Canadian imports, delays for petrochemical import ships through the Strait of Hormuz, and higher prices for domestic materials due to the supply and demand ratio.
Tariffs on steel, aluminium, and copper, in particular, are driving up prices. Mr Park explains that tariffs 'give domestic producers the opportunity to increase their prices.' For these materials and derived products, the tariffs have led to a price increase because foreign competitors must overcome the tariffs.
Full capacity utilisation in production
Delivery times for material supplies have extended from 24 to 36 weeks to 40 to 50 weeks, which Mr Park sees as a clear sign that metalworks and processors are operating at full capacity. This trend is expected to continue for the next six to twelve months, as investors deploy their capital where it can generate the strongest returns.
The Skanska report shows that private construction expenditure for non-residential buildings has risen from 1.7 percent in 2019 to 5.4 percent in 2025. Development in the life sciences sector is also experiencing significant growth. Skanska notes a high number of clients interested in developing life sciences properties, and the global development company is currently securing new project contracts in this submarket.
