The USA, Canada, and Mexico are forecast to see GDP growth of between 2.3% and 2.9% in the 4th quarter of 2026.
The U.S. continues to be the #1 economy, containing the largest related construction sector in the world, with its close to $32 trillion economy powering its unsurpassed technology know-how and creativity. The U.S. construction sector has the know-how and worldwide influence. In 2026, the value of this market is between $2.3 trillion and $2.7 trillion, by far the largest construction market in the world.
U.S. bulk and engineered construction materials have increased between 4% and 7.5% between the 3rd and 4th quarters of 2026. Look for this trend to continue in the coming months. The Iran situation and the increased cost of gasoline and diesel are the main reasons for this situation.
The U.S. is in the middle of a major expansion of LNG facilities, driven in some ways by the ongoing conflict with Iran. There are approximately 20 to 35 major LNG facilities being evaluated, designed, or under construction around the globe, with 10 to 12 of them situated in North America. A high number of these are located in Texas and Louisiana.
The USA is currently winning the global AI data center race against its main rival, China, primarily in Tier III and Tier IV high-end facilities. But how long will this last, with public sentiment changing regarding the merits of AI data centers?
The AI data center market in the U.S. is experiencing rapid expansion, with new $1 billion to $2 billion facilities announced almost weekly across the USA. In the next five years, approximately 2,500 new AI data centers are forecast to be built worldwide. Capital expenditures (CAPEX) in this sector continue to accelerate as demand for AI infrastructure grows. Current forecasts project that global investment in AI data centers will exceed $1 trillion across 2026 and 2027.
Projected Construction Material Increases in Q4 2026 from February 28, 2026
- Cable / copper products: 18% to 26%
- Aluminum products: 17% to 23%
- Steel / rebar: 14% to 19%
- Inland / ocean freight: 14% to 18.5%
- Electrical components / instrumentation devices: 12% to 17.5%
- HVAC components / equipment: 10% to 17%
- Process / utility pipe, CS / SS: 10% to 17%
The U.S. construction sector is facing extraordinary challenges, including a skilled workforce that is shrinking by the month due to retirement and the increasing utilization of AI throughout the construction sector. Fast-forward five to ten years, and U.S. construction will look completely different from today. The consensus is that between 250,000 and 500,000 construction workers are needed each year to keep pace with the future workload.
The 2026 U.S. / Canadian / Mexican construction market is estimated to be in the $3.10 trillion to $3.25 trillion range, an increase of 2.7% from 2025 (year over year), making it still the world’s largest construction market.
Canada’s construction market is projected to grow to C$285 billion by the end of 2026. Canada’s construction activity in the 4th quarter of 2026 is forecast to expand marginally by 1.4% to 1.9% over 2025 levels. Construction material costs are set to increase by 2.2% to 3.7%, and construction labor will see an increase of 2.5% to 2.9% in2026. The Canadian infrastructure, civil engineering, mining, and oil and gas construction sectors are experiencing a pickup as we move further into 2026.
The U.S. and Canada continue to ratchet up their trade dispute, with Canada looking tothe European Union as a possible major trading partner. It will be interesting to see how this all works out in the coming months.
