MOCA Systems Inc. (MSI) has released its Q3 2026 edition of Today’s Construction Economy, identifying power availability, material costs and labor as key factors affecting the U.S. nonresidential construction market.
The report points to three major pressures: electric-grid constraints delaying data center projects, tariff-driven material inflation and labor shortages in some regions.
Data center construction spending is up about 23% year over year, but grid interconnection delays are increasingly affecting project timelines. The report also notes that manufacturing construction has declined about 22% year over year as CHIPS Act and Infrastructure Investment and Jobs Act-related spending fades.
Material costs are another concern. The report says contractors have not yet fully passed higher tariff-related costs into bids, creating a gap between rising input costs and project pricing. That pressure could become more apparent as existing contracts are completed and new projects are bid.
Labor remains a challenge despite a moderating job market. Construction unemployment reached 4.1% in May, up from 3.5% a year earlier, while the industry is projected to need about 349,000 additional workers in 2026. The report also cites immigration enforcement as a factor affecting labor availability in some regions.
For owners and contractors, the findings suggest that power access, material pricing and workforce availability could have a greater effect on project costs and schedules than some of the industry's more prominent technology and reshoring trends.
