Projects costing more than $1 billion now account for roughly a quarter of US non-residential construction spending, according to ConstructConnect chief economist Michael Guckes. He told Construction Dive that their schedules increasingly influence headline industry indicators.
Construction starts dropped in August after large data center and manufacturing projects lifted July's figures. Such swings can reflect the timing of a few developments rather than broad changes across the market.
Growth is concentrated in digital infrastructure, power and advanced manufacturing. CoStar analyst Juan Arias identifies investment linked to semiconductors, electronics and communications equipment as key drivers. Chemical and automotive construction remains below year-earlier levels.
Contractors with data center awards have more work lined up than firms outside that segment. Even so, planning activity for new data centers cooled between July and August.
Rising costs add pressure. Associated Builders and Contractors' analysis puts August construction input prices 1.2% above July and 8.9% higher than a year earlier. Metals, petroleum products, copper wire and switchgear recorded notable increases. Economists also identify labor shortages and supply disruptions as threats to contractors' margins.