Construction News for the Week Ending September 4, 2026
Novelis’ $5 Billion Recycling Plant Nears Completion in Alabama
Construction on Novelis’ $5 billion aluminum recycling plant in Bay Minette, Alabama, is nearing completion. The plant, the first fully integrated recycling and rolling plant in the U.S. in over 40 years, is expected to begin commissioning before the end of 2026.
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Warsh Addresses Inflation, No Clear Rate Hike Signal
Federal Reserve Chair Kevin Warsh acknowledged the need to address persistent inflation, which has exceeded the central bank’s 2% target for over five years. While Warsh emphasized the importance of achieving the inflation objective, he did not explicitly indicate support for an interest rate hike at the upcoming September meeting. Despite traders increasing the likelihood of a rate increase, EY Chief Economist Gregory Daco believes the Fed will maintain its current stance.
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Expanding Labor Pool in Construction: Addressing Barriers
Construction firms are looking to underserved communities to expand their labor pool, but this requires addressing barriers to entry. This includes improving jobsite accessibility, such as aligning work schedules with public transportation and offering flexible work arrangements for parents. Additionally, the industry needs to prioritize inclusivity and safety, enforcing zero-tolerance policies for discrimination and harassment.
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UCSF Chooses Suffolk and CO Architects for Mission Bay Project
UCSF selected Suffolk Construction and CO Architects to deliver the $278 million Mission Bay Education Center and Dental Clinics project. The progressive design-build process will provide early input to inform key decisions and manage project complexity.
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Walmart’s $1.3 Billion Fulfillment Center in Georgia
Walmart plans to build a $1.3 billion, 1.5-million-square-foot automated fulfillment center in Carnesville, Georgia, creating 1,000 jobs. This facility is part of Walmart’s strategy to expand same-day and next-day shipping capabilities across the U.S.
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Strategies to Expand Data Center Workforce
The data center boom has created a significant demand for skilled workers, leading contractors to focus on expanding the labor pool and upskilling existing employees. Strategies include prioritizing local talent, offering comprehensive onboarding and incentive programs, and implementing mobile workforce initiatives with benefits like living allowances and travel stipends. The goal is to attract and retain workers by addressing factors beyond compensation, such as employee well-being and opportunities for growth.
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Construction Job Openings Surge Amid Skilled Worker Shortage
Construction job openings increased by 9.4% month over month and 6.9% year over year in July, reaching the highest level in nearly two years. While hiring also increased, the industry continues to face challenges in finding skilled workers and matching them with available positions.
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Antonia Junelind to Succeed Jari Mäntylä as Skanska USA Civil CFO in 2027
Antonia Junelind will succeed Jari Mäntylä as CFO of Skanska USA Civil on January 1, 2027. Junelind, who has been with Skanska for over 15 years, will bring a global perspective and strong understanding of the company to the role.
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Low Vacancy Rates Amid Power Shortages in North American Data Centers
Despite record data center construction in North America, limited power infrastructure capacity is causing vacancy rates to fall to a record low of 1.4%. This shortage is driving up rental rates and forcing tenants to consider alternative locations beyond traditional hubs like Northern Virginia. While concerns about overbuilding and resource availability persist, CBRE remains optimistic about the long-term impact of AI on the data center industry.
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JE Dunn Expands Tech Group with New VP
JE Dunn Construction is expanding its advanced technology group with a power generation unit, appointing Ryan Wilson as vice president and market lead. The firm cites the growth of AI infrastructure, manufacturing onshoring, and aging power infrastructure as key drivers for the surge in power generation projects.
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July Construction Spending Decline Amid Uncertainty
Construction spending dipped 0.5% in July, with private nonresidential spending increasing 0.4% due to data center activity. However, uncertainty over federal infrastructure funding threatens highway construction, and the overall market faces risks from worker shortages and other factors.
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Chobani’s $1.2 Billion Expansion in Allentown
Chobani is investing $1.2 billion to acquire and expand a facility in Allentown, Pennsylvania, creating over 900 jobs. The plant will produce high-protein, low-sugar milk for new product innovations. This investment is part of Chobani’s $4 billion expansion across its U.S. manufacturing network, driven by strong consumer demand for nutrient-rich foods.
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Scaffolding Collapse at Ann Arbor Construction Site
A crane moving scaffolding on a 13th-floor construction site in Ann Arbor caused scaffolding to collapse. The incident, which was not a structural failure, occurred at the Rambler, a 17-story apartment building. The worksite was inspected, and further scaffolding removal has been postponed.
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Trump Signs Stopgap Funding Bill, Averts Shutdown Until December 11th
President Trump signed a stopgap funding bill into law, averting a government shutdown until December 11th. The bill, which passed both the Senate and House with overwhelming majorities, ensures federal agencies are funded through the November midterms. While the bill avoids a shutdown, it sets the stage for another appropriations battle during the holiday season.
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Amtrak’s $1 Billion Sunnyside Yard Facility
Amtrak is building a $1 billion maintenance facility at Sunnyside Yard in Long Island City, New York. The project, funded by Congress, will support Amtrak’s new Airo trainsets and includes a new maintenance facility, service tracks, and platform upgrades.
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Data Center Labor Shortages and Solutions
Data center development is driving a surge in demand for specialized workers, particularly in construction, utilities, and telecommunications. This has led to acute labor shortages, with 25% of data center personnel being poached by competitors. To address this, data center employers are advised to recruit from adjacent sectors and implement rapid upskilling programs.
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July Construction Spending Decline Amid Uncertainty
Construction spending dipped 0.5% in July, with private nonresidential spending increasing 0.4% due to data center activity. However, uncertainty over federal infrastructure funding threatens highway construction, and the overall market faces risks from worker shortages and other factors.
To read more, click here.
