Skanska Building Operations Releases Winter 2026 Market Trends Report, Exploring Sector Shifts and Emerging Growth Drivers  

New York, NY — Skanska, a leading global construction and project development firm, has released its Winter 2026 Construction Market Trends Report.

Leveraging its Composite Construction Index, the report delivers in-depth analysis and critical insights into the current state of the construction industry, highlighting the impact of tariff exposure, labor shortages, and sector performance.  

“As we begin 2026, the U.S. construction market is navigating a period of cautious transition, with modest overall growth expected amid high borrowing costs, material inflation, and persistent labor shortages,” said Steve Stouthamer, Executive Vice President of Project Planning at Skanska USA Building. “While high-growth sectors such as data centers, semiconductor, and life science projects continue to drive activity, traditional residential and commercial markets remain softer, highlighting the uneven momentum shaping the year ahead.” 

With experience across diverse sectors nationwide and globally, Skanska brings a unique perspective on emerging industry trends, with key report highlights including:  

• Total construction starts were up 2.6 percent in December 2025 to a seasonally adjusted annual rate of $1.24 trillion, driven by a 16.3-percent increase in nonbuilding starts, with substantial gains in highways and bridges and miscellaneous nonbuilding projects 
• Year over year, nonresidential building starts are up four percent by dollar volume but are down about six percent by square footage. 
• Construction costs remain volatile, especially for key materials like steel, copper and aluminum:   
• Steel: Hot-rolled and cold-rolled coil prices are up nearly 45 percent since mid-2025. Metal studs experienced 10–15 percent price increases in January following November adjustments, while wide flange steel is $100/ton higher than October 2025, fueled by tariffs and strong demand from data centers and manufacturing. 
• Copper: Futures reached above $6/pound in early January before easing slightly as global inventories rose. Copper wire pricing is up 25–30 percent from January 2025, reflecting continued demand from electrification, renewable energy, and AI-related projects. Similar to both steel and aluminum, imported fabricated copper products are subject to a 50% tariff rate.  
• Aluminum: The Midwest Premium surged from $500 to $2,200/tonne, prompting manufacturers of aluminum products to announce price increases in late 2025 and early 2026. Aluminum wire prices, for example, are up nearly 20 percent.  The Midwest Premium is a regional surcharge (including tariffs) added to the London Metal Exchange (LME) base price for aluminum delivered to the U.S. Midwest. With less than 50 percent of aluminum used in the U.S. produced domestically, aluminum tariff exposure is heightened. 
• In December 2025, the construction industry lost 11,000 jobs, netting only 14,000 jobs added across the year for a minimal increase of 0.2 percent. 
• The industry’s unemployment rate was five percent, down 0.2 percent from December 2024. 
• Sector performance is highly uneven. The standout growth drivers are data centers and large tech-related megaprojects, powered by ongoing demand for AI, cloud and data infrastructure. 
• Nonresidential construction will accelerate in 2027 due to sustained planning across 2025 in data center, healthcare and recreation markets. 
• By contrast, traditional residential construction and cyclical commercial segments, such as retail, office and manufacturing facilities, are softer. 

On Thursday, March 5, Skanska will host a public webinar, Markets, Materials and Momentum: What’s Ahead in 2026, where Skanska leaders will be joined by industry expert Ken Simonson, chief economist, at Associated General Contractors of America to share insights on how macroeconomic trends are affecting construction costs and material pricing, and where different market sectors may face pressures or opportunities in 2026. Learn more and register HERE.