Skanska's Spring 2026 Construction Market Trends Report found that rising material costs, labor challenges and strong demand from data center and technology projects continue to shape the construction market.
According to the report, construction employment grew by 50,000 jobs year over year, with nonresidential construction employment increasing 2%. Demand for data center construction remains a key driver of growth and labor demand, particularly among mechanical, electrical and plumbing trades.
The report also highlighted continued cost escalation across the industry. Skanska's Composite Cost Index increased more than 6% year over year, while the ENR Materials Index rose 5.3%. Prices for key materials, including copper, aluminum, nickel and structural steel, also increased over the past 12 months.
While project planning activity showed signs of improvement, Skanska noted that tariff uncertainty, inflationary pressures and energy market volatility continue to create challenges for owners and contractors. The report also found total construction starts increased 12.8% in March, driven largely by growth in nonbuilding construction.
At the same time, the company's Project Stress Index indicated ongoing caution in the market, reflecting continued project delays and other preconstruction challenges.
