Construction News for the Week Ending September 18, 2026
JE Dunn Expands Power Generation Unit
JE Dunn Construction expanded its advanced technology group with a power generation unit led by Ryan Wilson. Drivers include AI infrastructure, manufacturing onshoring, and aging systems. Clayco, WSP Global, Kiewit, and Bechtel are also active in the sector.
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Walmart’s $1.3B Georgia Fulfillment Center
Walmart plans a $1.3 billion, 1.5-million-square-foot automated fulfillment center in Carnesville, Georgia, creating 1,000 jobs with construction starting in late 2026. Automation remains a priority, with retrofits planned for 23 distribution centers.
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Data Center Expansion Surge
Planned and operating data centers nearly tripled from March to August 2026, driven by billions from Microsoft, Amazon, Meta, Google, and Stack Infrastructure. Power limits, state restrictions, and supply chain delays hinder completion. Virginia leads construction.
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Buildots Secures $130 Million for Global Expansion
Buildots raised $130 million led by O.G. Venture Partners, totaling $297 million. The Tel Aviv startup creates digital twins for contractors like JE Dunn and Hochtief. It targets data standardization and plans global expansion across construction lifecycles.
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Contractors Struggle with Labor Shortages Amid Data Center Boom
Contractors face labor shortages despite softer demand; 87% report openings and 88% find filling them harder. Multiskilling and partnerships with colleges aim to develop talent internally. Data center projects intensify competition, wage pressure, and turnover.
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Construction Input Prices Surge, Delays Impact Contractors
Construction input prices rose 1.2% in August and 8.9% year over year, with key materials exceeding 10% increases. ABC and AGC report cost-driven delays affecting 55% of contractors, threatening profitability and activity.
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Lessons learned from rebuilding the Pentagon after 9/11
The Pentagon Renovation Office’s design-build project, led by Hensel Phelps Construction and Southland Industries, reduced a 14-year timeline to 10 years after the Sept. 11 attacks. Using a phased 15,000-square-foot approach and SIPS scheduling, the team rebuilt the structure with collaborative decision-making and LEED goals.
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Kansas City Royals’ Ballpark Construction Manager Announced
A joint venture of Mortenson and McCownGordon Construction will serve as construction manager at risk for the Kansas City Royals’ $1.9 billion ballpark. Groundbreaking is targeted for May 2027, with completion by opening day 2030.
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Construction Industry Urges Action on Suicide Prevention
Trent Johnson shared his brother Luke’s 2013 suicide during a PCL Construction meeting, prompting outreach during Construction Suicide Prevention Week. Data show high rates but a slight decrease; Cortez Masto introduced legislation for research. Low EAP use persists; experts urge action beyond awareness.
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U.S. Steel and Array Technologies Expand Domestic Capacity
U.S. Steel resumed operations at its Gary blast furnace after a $350 million reline. Array Technologies opened a $50 million Albuquerque facility supporting 300 jobs and Section 45X tax credits. Both expand domestic capacity amid federal funding.
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Contractors Struggle with Labor Shortages Amid Data Center Boom
Contractors face labor shortages despite softer demand; 87% report openings and 88% find filling them harder. Multiskilling and partnerships with colleges aim to develop talent internally. Data center projects intensify competition, wage pressure, and turnover.
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Skanska Considers Mass Timber Amid Rising Steel Prices
Steel prices rose 25% and lead times doubled due to AI-driven demand, prompting Skanska to consider mass timber. Despite higher upfront costs, mass timber may achieve cost neutrality through lighter structures and schedule gains. Lumber costs remain stable.
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John Herrera Appointed COO at Adolfson & Peterson
John Herrera becomes Adolfson & Peterson’s COO on Oct. 1, overseeing national operations from Colorado after serving as AP Mountain States regional president. Brandon Hill succeeds him. Herrera will address market volatility and labor shortages.
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MTA’s $5.5 Billion Brooklyn–Queens Light Rail Project Details
The MTA will release the draft environmental impact statement for the $5.5 billion interborough express by year’s end. The Brooklyn–Queens light rail, projected at 160,000 daily riders, will use new tracks alongside freight routes and connect 17 subway lines. Funding includes $2.75 billion from the 2025–29 Capital Plan and $45 million from the 2026 budget; federal or state support may follow. Design continues through 2027; construction may take five years. All stations will comply with the ADA.
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Fed Rate Hike: Impacts and Predictions
The Federal Reserve raised rates by 25 basis points, raising borrowing costs and threatening project viability. Guckes warns of delays or abandonment; Strawberry notes potential long-term rate drops. Roberts expects continued inflation; housing and commercial sectors face uneven impacts.
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Construction Backlog Hits 8.5 Months Amid Data Center Surge
Construction backlog rose to 8.5 months in August, driven by record data center demand, per ABC. Labor shortages resurged, and firms without data center work cut staffing, while sales and profit margins rose with growth expectations.
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Columbus Mass Timber Project Tops Out Early
Intro Columbus, a 13-story mass timber student housing project near Ohio State University, topped out roughly 10 weeks early, becoming the tallest U.S. mass timber housing structure. Elford Construction and partners aim for 2027 completion.
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Brightline West and California High-Speed Rail Face Financial Challenges
Brightline West must invest $400 million by Nov. 2 after missing March 31, 2026, relying on $3.5 billion in bonds, a $3 billion grant, and a possible $6 billion loan; costs rose to $21 billion. California High-Speed Rail Authority seeks outside investors via a $25 million agreement, facing an $87 billion gap and potential December 2027 insolvency.
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MTA RFQ for Second Avenue Subway Phase 2
The MTA issued an RFQ for the final Second Avenue Subway Phase 2 contract, aiming for a 2027 start and 2032 completion. The package adds three Q line stations in East Harlem; three prior contracts are underway.
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