Latest news with #Linesight
National Post
2 days ago
- Business
- National Post
North American Construction Market Forecasts Steady Growth Through 2028 Despite Power and Workforce Constraints, Says Linesight
Article content Surging demand for dependable energy from mission-critical sectors is accelerating the need to upgrade energy infrastructure and adopt alternative energy solutions Article content NEW YORK — Global construction consultant Linesight has released its latest Construction Market Insights report, revealing that the North American construction industry continues to gain momentum, fueled by mission-critical sectors, despite the uncertainty surrounding US tariffs and global trade. Article content Despite global trade uncertainty and the ongoing impacts of US tariffs, the industry is anticipating steady growth. In 2024, the US construction industry grew by 4.5%, exceeding the initial projection of 2.5%, driven by investments in semiconductors, clean energy, infrastructure, and advanced manufacturing. While growth is expected to be moderate over the next several years, demand from AI-driven data centers and high-tech industrial manufacturing will continue to support expansion. Article content Following a 1.8% contraction in 2024 due to residential slowdowns and high financing costs, Canada's construction industry is poised for recovery. From 2025 to 2028, it anticipates a healthy 2.8% annual growth, fueled by significant investments in transportation, renewable energy, and essential water infrastructure projects. While 2025 sees a modest GDP growth revision to 1.4%, influenced by US tariffs, a broader economic rebound is expected by mid-2026. Article content 'The next phase of growth for North American construction will be shaped by how well the industry addresses persistent infrastructure and supply chain vulnerabilities,' commented Patrick Ryan, Executive Vice President for the Americas at Linesight. 'Tariffs are causing volatility in the supply chain, which is impacting procurement strategies, worsening lead times and increasing cost pressures. Clients should prioritize risk management, localize supply chains where possible, and explore tariff-exempt sourcing alternatives to build greater resilience into their projects.' Article content Power infrastructure now a top priority Article content Linesight's latest report underscores the growing urgency of addressing power infrastructure issues, as mission-critical sectors such as data centers, electric transport, and advanced manufacturing drive unprecedented demand for reliable electricity. The US Energy Information Administration (EIA) projects electricity demand to rise by 35–50% between 2024 and 2040, placing increasing strain on North America's aging grid systems. Article content Utility companies are responding, with capital expenditures across 47 major US energy utilities companies projected to surpass US$212 billion in 2025, a 22% increase over 2024, according to S&P Global. To mitigate energy supply constraints, high-reliability sectors are turning to solutions such as Battery Energy Storage Systems (BESS), Small Modular Fuel Reactors (SMRs), and hydrogen-powered systems to improve operational efficiency and reduce emissions. Article content Labor shortages and supply chain volatility persist Article content The report highlights that while supply chains for long-lead equipment (LLE) across North America began stabilizing in late 2024, volatility remains a concern heading into 2025, particularly for large electrical equipment such as transformers, where lead times will likely increase in the near term. North American labor shortages continue to challenge project delivery, with high-demand markets like Ohio, Utah, and Louisiana struggling to secure qualified contractors and skilled tradespeople. Article content Sector snapshots Article content Data Centers: The US is on track to become the fastest-growing global data center market, with capacity expected to increase from 25 GW in 2024 to over 80 GW by 2030. Demand from AI workloads is reshaping procurement strategies and accelerating investment in power and cooling solutions. Leading the Canadian market, Ontario and Alberta have become key hubs for data center growth. Article content Life Sciences: The US dominates the global life sciences sector, holding nearly 70% of 2024's total venture capital deal value. This leadership is driven by evolving investment, focusing on larger, strategic deals and established players in oncology, cardiology, immunology, and neuroscience. While lab construction will slow, manufacturing activity is rising, with higher investment in advanced facilities and continuous manufacturing systems. In contrast, the Canadian life sciences sector has seen a notable decline since 2023, largely due to funding pressures. Article content High-tech Industrial: Semiconductor and battery manufacturing are fueling North American high-tech industrial construction growth, spurred by the CHIPS and Science Act and the Inflation Reduction Act (IRA). The US Semiconductor Industry Association (SIA) projects a 203% growth in US chip manufacturing capacity by 2032, the largest increase globally. Battery manufacturing, now 69% of all new US clean tech manufacturing projects, has surged despite some recent project delays. However, uncertainty surrounding future incentive guidelines poses a risk to continued expansion. In Canada, federal funding has supported the battery sector, but some projects face delays as EV demand dips. Article content Commercial: The US commercial sector has experienced moderate but stable growth. Investments in green and high-quality office retrofits are rising, driven by stricter energy efficiency mandates taking effect in many US and Canadian cities, prompting landlords to upgrade buildings. While new office developments have slowed, sustainability, tech advancements, and financing adaptations will shape the sector. Project costs face impact from skilled labor shortages and steel and aluminum tariffs. Article content Linesight is a multinational consultancy firm with over 50 years' experience, providing cost, schedule, program, and project management services to multiple sectors including Life Sciences, Commercial, Data Centers, High-Tech Industrial, Residential, Hospitality, Healthcare, and Retail. Linesight's specialist project teams, each with specific skills and experience, provide faster project delivery, greater cost efficiency, and maximum value for money for their clients. For further information, please visit Article content Article content Article content
Business Wire
2 days ago
- Business
- Business Wire
North American Construction Market Forecasts Steady Growth Through 2028 Despite Power and Workforce Constraints, Says Linesight
NEW YORK--(BUSINESS WIRE)--Global construction consultant Linesight has released its latest Construction Market Insights report, revealing that the North American construction industry continues to gain momentum, fueled by mission-critical sectors, despite the uncertainty surrounding US tariffs and global trade. Despite global trade uncertainty and the ongoing impacts of US tariffs, the industry is anticipating steady growth. In 2024, the US construction industry grew by 4.5%, exceeding the initial projection of 2.5%, driven by investments in semiconductors, clean energy, infrastructure, and advanced manufacturing. While growth is expected to be moderate over the next several years, demand from AI-driven data centers and high-tech industrial manufacturing will continue to support expansion. Following a 1.8% contraction in 2024 due to residential slowdowns and high financing costs, Canada's construction industry is poised for recovery. From 2025 to 2028, it anticipates a healthy 2.8% annual growth, fueled by significant investments in transportation, renewable energy, and essential water infrastructure projects. While 2025 sees a modest GDP growth revision to 1.4%, influenced by US tariffs, a broader economic rebound is expected by mid-2026. 'The next phase of growth for North American construction will be shaped by how well the industry addresses persistent infrastructure and supply chain vulnerabilities,' commented Patrick Ryan, Executive Vice President for the Americas at Linesight. 'Tariffs are causing volatility in the supply chain, which is impacting procurement strategies, worsening lead times and increasing cost pressures. Clients should prioritize risk management, localize supply chains where possible, and explore tariff-exempt sourcing alternatives to build greater resilience into their projects.' Power infrastructure now a top priority Linesight's latest report underscores the growing urgency of addressing power infrastructure issues, as mission-critical sectors such as data centers, electric transport, and advanced manufacturing drive unprecedented demand for reliable electricity. The US Energy Information Administration (EIA) projects electricity demand to rise by 35–50% between 2024 and 2040, placing increasing strain on North America's aging grid systems. Utility companies are responding, with capital expenditures across 47 major US energy utilities companies projected to surpass US$212 billion in 2025, a 22% increase over 2024, according to S&P Global. To mitigate energy supply constraints, high-reliability sectors are turning to solutions such as Battery Energy Storage Systems (BESS), Small Modular Fuel Reactors (SMRs), and hydrogen-powered systems to improve operational efficiency and reduce emissions. Labor shortages and supply chain volatility persist The report highlights that while supply chains for long-lead equipment (LLE) across North America began stabilizing in late 2024, volatility remains a concern heading into 2025, particularly for large electrical equipment such as transformers, where lead times will likely increase in the near term. North American labor shortages continue to challenge project delivery, with high-demand markets like Ohio, Utah, and Louisiana struggling to secure qualified contractors and skilled tradespeople. Sector snapshots Data Centers: The US is on track to become the fastest-growing global data center market, with capacity expected to increase from 25 GW in 2024 to over 80 GW by 2030. Demand from AI workloads is reshaping procurement strategies and accelerating investment in power and cooling solutions. Leading the Canadian market, Ontario and Alberta have become key hubs for data center growth. Life Sciences: The US dominates the global life sciences sector, holding nearly 70% of 2024's total venture capital deal value. This leadership is driven by evolving investment, focusing on larger, strategic deals and established players in oncology, cardiology, immunology, and neuroscience. While lab construction will slow, manufacturing activity is rising, with higher investment in advanced facilities and continuous manufacturing systems. In contrast, the Canadian life sciences sector has seen a notable decline since 2023, largely due to funding pressures. High-tech Industrial: Semiconductor and battery manufacturing are fueling North American high-tech industrial construction growth, spurred by the CHIPS and Science Act and the Inflation Reduction Act (IRA). The US Semiconductor Industry Association (SIA) projects a 203% growth in US chip manufacturing capacity by 2032, the largest increase globally. Battery manufacturing, now 69% of all new US clean tech manufacturing projects, has surged despite some recent project delays. However, uncertainty surrounding future incentive guidelines poses a risk to continued expansion. In Canada, federal funding has supported the battery sector, but some projects face delays as EV demand dips. Commercial: The US commercial sector has experienced moderate but stable growth. Investments in green and high-quality office retrofits are rising, driven by stricter energy efficiency mandates taking effect in many US and Canadian cities, prompting landlords to upgrade buildings. While new office developments have slowed, sustainability, tech advancements, and financing adaptations will shape the sector. Project costs face impact from skilled labor shortages and steel and aluminum tariffs. Read the full Constructions Market Insights Americas report now. Linesight is a multinational consultancy firm with over 50 years' experience, providing cost, schedule, program, and project management services to multiple sectors including Life Sciences, Commercial, Data Centers, High-Tech Industrial, Residential, Hospitality, Healthcare, and Retail. Linesight's specialist project teams, each with specific skills and experience, provide faster project delivery, greater cost efficiency, and maximum value for money for their clients. For further information, please visit
Business Times
3 days ago
- Business
- Business Times
Oversupply from China to cut Singapore construction material prices further in Q2
[SINGAPORE] Prices for some construction commodities in Singapore are tipped to fall further in the second quarter, with steel rebar prices forecast to fall 13 per cent year on year driven by oversupply and competitive exports from China. This could benefit developers, builders and other construction contractors, though new tariffs may disrupt global supply chains in the near term, a report by construction consultancy Linesight said. Linesight predicted that prices for several key materials – such as copper, steel rebar, stainless steel, steel flat, cement and diesel – will dip in the second quarter of this year. Lower prices of between 1 and 13 per cent year on year follow corrections across most of the Asia-Pacific (Apac) in 2024. Steel rebar prices in Singapore, for instance, have been on a decline since Q2 2023. It is forecast to fall another 20.6 per cent in Q2, extending an estimated 19.7 per cent decline in the first quarter. Year on year, steel rebar prices are expected to be 13 per cent lower. The drop in steel rebar prices, in particular, is set to continue in most of Apac and Gulf Cooperation Council markets amid global trade tensions and uncertain local production, said Linesight. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Oversupply and competitive export prices, especially from China, puts pressure on regional steel rebar prices, it added. 'The imposition of US tariffs has inadvertently increased domestic steel availability, further contributing to price declines in some regions.' Prices of concrete, lumbar and plasterboard are estimated to hold steady in Q2, while that of bricks could inch up 1 per cent and aluminium up 6 per cent. Aluminium prices had fallen in the previous year – bucking gains in most of Apac – due to already high base prices, Linesight noted. But tight supply conditions, rising production costs and geopolitical factors turned the tide in 2025 with prices up seen creeping back up, it said. For the rest of this year, Linesight projects a -1 to +1 per cent price change for most of Singapore's construction commodities. 'Global geopolitical tensions continue to contribute to the overall inflationary risk premium in the construction industry,' said Linesight. 'Trade restrictions, tariff uncertainties, and raw material bottlenecks are creating unpredictable cost scenarios for developers and contractors. These factors, coupled with energy market volatility, are amplifying volatility in cost planning and procurement.' Easing wages The consultancy pointed out that labour inflation eased in Singapore as well, to 1.5 per cent in 2024, from 9 per cent in 2023. Still, shortages in structural skilled labour persist, putting pressure on the cost of construction, it said. Linesight added that mission-critical sectors are now facing inflationary pressures, with tight contractor availability and longer lead times for equipment. These include sectors such as data centres, renewable energy facilities and artificial intelligence-driven infrastructure projects. Overall, construction output is likely to grow steadily across Apac, with strong activity in data centres, infrastructure, industrial and energy sectors, Linesight's report showed. This is mainly driven by government spending, coupled with large scale projections and industrial expansion, it said. The region is poised to see the fastest growth of data centre colocation over the next five years, commanding a massive construction pipeline of US$56.4 billion. Singapore's construction industry is forecast to see average annual growth of 4.1 per cent from 2025 to 2028, up from 3.3 per cent in 2024, fuelled by investments in oil and gas, transport, and renewable energy projects. Construction contracts surged 34 per cent year on year in the first nine months of that year. The industry's projected improvement is further boosted by the government's push to achieve 2 gigawatt-peak of solar power by 2030 and carbon neutrality by 2050, said the consultancy. Billions of dollars have also been set aside for its Land Transport Master Plan 2040, which charts Singapore's land transport strategies, and the undersea energy cable project, it said.
Business Times
3 days ago
- Business
- Business Times
Singapore construction material costs to fall further in Q2 but tariffs may disrupt supply
[SINGAPORE] Prices for some construction commodities in Singapore are tipped to fall further in the second quarter, with steel rebar prices forecast to fall 13 per cent year on year driven by oversupply and competitive exports from China. This could benefit developers, builders and other construction contractors, though new tariffs may disrupt global supply chains in the near term, a report by construction consultancy Linesight said. Linesight predicted that prices for several key materials – such as copper, steel rebar, stainless steel, steel flat, cement and diesel – will dip in the second quarter of this year. Lower prices of between 1 and 13 per cent year on year follow corrections across most of the Asia-Pacific (Apac) in 2024. Steel rebar prices in Singapore, for instance, have been on a decline since Q2 2023. It is forecast to fall another 20.6 per cent in Q2, extending an estimated 19.7 per cent decline in the first quarter. Year on year, steel rebar prices are expected to be 13 per cent lower. The drop in steel rebar prices, in particular, is set to continue in most of Apac and Gulf Cooperation Council markets amid global trade tensions and uncertain local production, said Linesight. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Oversupply and competitive export prices, especially from China, puts pressure on regional steel rebar prices, it added. 'The imposition of US tariffs has inadvertently increased domestic steel availability, further contributing to price declines in some regions.' Prices of concrete, lumbar and plasterboard are estimated to hold steady in Q2, while that of bricks could inch up 1 per cent and aluminium up 6 per cent. Aluminium prices had fallen in the previous year – bucking gains in most of Apac – due to already high base prices, Linesight noted. But tight supply conditions, rising production costs and geopolitical factors turned the tide in 2025 with prices up seen creeping back up, it said. For the rest of this year, Linesight projects a -1 to +1 per cent price change for most of Singapore's construction commodities. 'Global geopolitical tensions continue to contribute to the overall inflationary risk premium in the construction industry,' said Linesight. 'Trade restrictions, tariff uncertainties, and raw material bottlenecks are creating unpredictable cost scenarios for developers and contractors. These factors, coupled with energy market volatility, are amplifying volatility in cost planning and procurement.' Easing wages The consultancy pointed out that labour inflation eased in Singapore as well, to 1.5 per cent in 2024, from 9 per cent in 2023. Still, shortages in structural skilled labour persist, putting pressure on the cost of construction, it said. Linesight added that mission-critical sectors are now facing inflationary pressures, with tight contractor availability and longer lead times for equipment. These include sectors such as data centres, renewable energy facilities and artificial intelligence-driven infrastructure projects. Overall, construction output is likely to grow steadily across Apac, with strong activity in data centres, infrastructure, industrial and energy sectors, Linesight's report showed. This is mainly driven by government spending, coupled with large scale projections and industrial expansion, it said. The region is poised to see the fastest growth of data centre colocation over the next five years, commanding a massive construction pipeline of US$56.4 billion. Singapore's construction industry is forecast to see average annual growth of 4.1 per cent from 2025 to 2028, up from 3.3 per cent in 2024, fuelled by investments in oil and gas, transport, and renewable energy projects. Construction contracts surged 34 per cent year on year in the first nine months of that year. The industry's projected improvement is further boosted by the government's push to achieve 2 gigawatt-peak of solar power by 2030 and carbon neutrality by 2050, said the consultancy. Billions of dollars have also been set aside for its Land Transport Master Plan 2040, which charts Singapore's land transport strategies, and the undersea energy cable project, it said.
Business Times
3 days ago
- Business
- Business Times
Construction material costs to fall further in Q2, but tariff policy may disrupt supply chains
[SINGAPORE] Prices for some construction commodities in Singapore are tipped to fall further in the second quarter, with steel rebar prices forecast to fall 13 per cent year on year driven by oversupply and competitive exports from China. This could benefit developers, builders and other construction contractors, though new tariffs may disrupt global supply chains in the near term, a report by construction consultancy Linesight said. Linesight predicted that prices for several key materials – such as copper, steel rebar, stainless steel, steel flat, cement and diesel – will dip in the second quarter of this year. Lower prices of between 1 per cent and 13 per cent year on year follow corrections across most of the Asia-Pacific (Apac) in 2024. Steel rebar prices in Singapore, for instance, have been on a decline since Q2 2023. It is forecast to fall another 20.6 per cent in Q2, extending an estimated 19.7 per cent decline in the first quarter. Year on year, steel rebar prices are expected to be 13 per cent lower. The drop in steel rebar prices, in particular, is set to continue in most of Apac and Gulf Cooperation Council markets amid global trade tensions and uncertain local production, said Linesight. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Oversupply and competitive export prices, especially from China, puts pressure on regional steel rebar prices, it added. 'The imposition of US tariffs has inadvertently increased domestic steel availability, further contributing to price declines in some regions.' Prices of concrete, lumbar and plasterboard are estimated to hold steady in Q2, while that of bricks could inch up 1 per cent and aluminium up 6 per cent. Aluminium prices had fallen in the previous year – bucking gains in most of Apac – due to already high base prices, Linesight noted. But tight supply conditions, rising production costs and geopolitical factors turned the tide in 2025 with prices up seen creeping back up, it said. For the rest of this year, Linesight projects a -1 to +1 per cent price change for most of Singapore's construction commodities. 'Global geopolitical tensions continue to contribute to the overall inflationary risk premium in the construction industry,' said Linesight. 'Trade restrictions, tariff uncertainties, and raw material bottlenecks are creating unpredictable cost scenarios for developers and contractors. These factors, coupled with energy market volatility, are amplifying volatility in cost planning and procurement.' Easing wages The consultancy pointed out that labour inflation eased in Singapore as well, to 1.5 per cent in 2024, from 9 per cent in 2023. Still, shortages in structural skilled labour persist, putting pressure on the cost of construction, it said. Linesight added that mission-critical sectors are now facing inflationary pressures, with tight contractor availability and longer lead times for equipment. These include sectors such as data centres, renewable energy facilities and artificial intelligence-driven infrastructure projects. Overall, construction output is likely to grow steadily across Apac, with strong activity in data centres, infrastructure, industrial and energy sectors, Linesight's report showed. This is mainly driven by government spending, coupled with large scale projections and industrial expansion, it said. The region is poised to see the fastest growth of data centre colocation over the next five years, commanding a massive construction pipeline of US$56.4 billion. Singapore's construction industry is forecast to see average annual growth of 4.1 per cent from 2025 to 2028, up from 3.3 per cent in 2024, fuelled by investments in oil and gas, transport, and renewable energy projects. Construction contracts surged 34 per cent year-on-year in the first nine months of that year. The industry's projected improvement is further boosted by the government's push to achieve 2 gigawatt-peak of solar power by 2030 and carbon neutrality by 2050, said the consultancy. Billions of dollars have also been set aside for its Land Transport Master Plan 2040, which charts Singapore's land transport strategies, and the undersea energy cable project, it said.
