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Subjects: Survey, Economic News/Analysis

Construction Commodities Prices Continue to Stabilize as Digital and Energy Transformation Continue to Drive Industry Growth

Global construction consultant Linesight today released its Q2 US Country Commodity Report, noting that commodity prices are continuing to stabilize, albeit at elevated levels, with the GDP rising beyond expectations and signs of cooling inflation. Digital transformation is driving rapid expansion in the data center and high-tech industrial sectors in the United States supported by federal legislation such as the CHIPS and Science Act and the Infrastructure Investment and Jobs Act. This is presenting some challenges namely in skilled workers to deliver the facilities, as well as a growing need to identify new sites and locations to meet the digital infrastructure requirements into the future.

While commodities prices are generally stabilizing, the increased demand from such mission-critical facilities will maintain inflated levels when compared to pre-pandemic levels.

The data in the report suggests:

The report shows that robust growth is expected in the infrastructure and high-tech manufacturing sectors, thanks to policies like the CHIPS and Science Act, the Infrastructure Investment and Jobs Act, and the Inflation Reduction Act. Manufacturing construction has doubled since late 2021, and the data center market is attracting investors, with 314 new hyperscale data center sites in development for 2024. Challenges for the battery manufacturing sector include limited construction expertise, regional bottlenecks and the need to localize the value chain for supply chain resiliency.

Patrick Ryan, Executive Vice President for the Americas at Linesight, says, "We're seeing cautious optimism for the construction industry, but skilled labor shortages and high interest rates remain ongoing challenges impacting program delivery and cost. As secondary and tertiary markets begin to attract major developments and, as a result, may experience more labor pressure, we are advising clients to keep a close watch on site selection for their projects and the continued use of risk mitigation strategies."

To request the full report, please click here.

About Linesight

Linesight is a multinational construction consultancy firm with over 49 years' experience, providing cost, schedule, program, and project management services to a multitude of 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 better predictability of project outcomes, faster project delivery, greater cost efficiency, and maximum monetary value for its clients. For further information, please visit http://www.linesight.com.

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