The USA continues to be the most powerful country in the world, with its close to $30 trillion economy that powers its unsurpassed technology know-how, creativity, EPC knowhow & worldwide influence.

As much as 25% of construction workers are migrants, predominantly from Central America, it is believed that as much as 50% of these construction workers are not permitted / documented to work in the USA.  This could be a major problem in the next 6 to 12 months with President Trump’s promise to remove undocumented migrants from the USA.

With a Trump election victory, the USA construction sector believes that there will be less red tape / environmental rules & restrictions which greatly assist in the front-end construction permitting process.

In October, the Southeast States of the USA (Florida, Georgia, South Carolina, North Carolina & parts of Virginia) has been hammered by (2) Category 4 & 5 Hurricanes. Over 270 people have lost their lives to Hurricanes Helene & Milton, these (2) Hurricanes have seriously damaged or destroyed numerous highways, bridges, homes, commercial buildings, overhead electrical power lines, internet & water essential services that will take many months to repair & replace. The cost of this repair / replacement effort will be upwards of $10 to $20 billion.

USA construction costs that include material & labor costs have increased year-to-year on average by 3.4%. Look for this rate to fall marginally as we transition into the 1st half of 2025. Construction material & labor costs have increased by 23% since 2020, which averages out to just less than 5% per year, across all USA geographic areas.

The pharmaceutical, bio, medical device (life sciences) construction sector has seen on a slowdown in the last 6 months. Look for this to continue well into 2025 as the sector reflects on what impact President Trump will have on this important sector.

Asphalt, structural steel products, cement, aggregates, wall board, pvc / carbon steel pipe, windows, siding & roofing materials which are produced in the USA are less susceptible to the impact of future imposed tariffs / import duties.

Data center project growth is starting to experience a slowdown from the feverish pace from just 6 months earlier. shortages of skilled labor & high construction material costs have stymied some major projects from moving ahead.

In the USA the year and a half US manufacturing construction boom is starting to see some signs of a gradual slowdown. However, there still are a good number of EV manufacturing and battery plants together with computer FAB facilities and call centers in the development pipeline that will keep this construction sector reasonably busy for the next 12 to 18 months.

The residential market (apartments, single family homes & the like) is starting to experience a slowdown in activity due to high mortgage rates. However, the US Federal Reserve recently eased monetary / mortgage policy, the demand for new home construction will hopefully increase. US Contractors still have difficulty in hiring skilled construction workers in most regions of the country.

The 2025 US / Canadian / Mexico Construction market is estimated to be in the $3.15 to $3.25 trillion range, an increase of 2.8% from 2024. In the USA, construction cost increases have returned to more customary levels since the conclusion of COVID in the range of 2.7% to 3.3%.

The US construction industry continues to face supply chain challenges, price spikes, longer delivery times for such components as MCC / switchgear, modules / specialized skids- pre-assemblies, large compressors, heat exchanges, certain key instrument devices, larger pumps, fabricated process piping, specialized pharmaceutical production equipment, HVAC / HEPA / equipment and filters.

Severe shortages of skilled construction labor such as Pipefitters, Welders, Electricians and Instrumentation technicians continue to be a serious problem to the US construction industry.

US construction inflation for materials & labor will continue to remain in the 2.6% to 3.4% range for the next 3 to 6 months. Lower interest / borrowing rates will be a positive development for the US Commercial / Housing sector.

US Construction material inflation in the 3-year period from 2021 to 2024 has increased by as much as 24%, with a lot of the increase attributable to COVID and the follow-on supply chain issues and material shortages. Construction material prices have remained static in North America for the last 6 months with a few exceptions which is good news for the industry.

USA Real GDP growth forecasts for 2025 is in the 2.6% to 3.2% range, not too bad considering all the events and challenges the US economy has faced.

More than 1.5 to 3 million skilled construction workers (Electricians, Welders, Plumbers, Carpenters & Masons) will be required across the USA, Canada & Mexico in the next 5 to 10 years to replace the current aging & retiring workforce and to also augment the need for new skilled workers for the anticipated future growth needs of the 3 country’s construction sectors. 

Canada’s construction market is projected to grow to C$275 billion by the end of 2025. Canada’s construction activity in the 1st Q of 2025 is forecast to expand marginally by 1.6% to 2.4% over 2024 levels.  Construction material costs are set to increase by 2.2% to 2.7% and construction labor will see an increase of 2.5% in 2025.

Some of Canada’s eastern provinces are investing millions of Canadian $’s in clean energy / renewable battery storage facilities, green hydrogen plants & hydroelectric facilities in Ontario, Quebec, Nova Scotia & Newfoundland.

The Mexican construction sector is forecast to grow in 2025 and 2026 due a few Government sponsored infrastructure projects and a pipeline of commercial and industrial projects. Mexico’s GDP will be in the 1.6% to 1.9% range going into 2025 1st Q. Construction related inflation is currently 4.6% to 5.1% and construction unemployment is 7.8% to 8.8%.