Long lead times on materials are creating new project delivery challenges, according to Skanska’s Summer 2026 Construction Market Trends Report.

Structural steel lead times have reached 40 to 50 weeks in some markets, while HVAC equipment lead times can reach 52 weeks, the report says.

Demand for generators 2 MW and larger is also straining available manufacturing capacity.

Costs on many materials and equipment remain under pressure. Generator prices are expected to increase 8%-10% in 2026, while HVAC equipment pricing is expected to rise 10%-12%, driven by elevated demand and supply constraints across high-growth sectors.

The construction market is increasingly uneven with data centers, infrastructure, power generation, advanced manufacturing, pharmaceuticals, and select healthcare markets continuing to attract significant investment.

Data center construction remains the fastest-growing segment of U.S. commercial construction accounting for about 5.4% of private nonresidential building construction spending in 2025, up from roughly 1.7% in 2019.

Meanwhile, office, retail, higher education, and other commercial sectors remain comparatively subdued.