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Data center and life sciences demand lifts US materials lead times
Skanska says material delivery lead times stretched from 24 to 36 weeks, to 40 to 50 weeks, as mechanical, electrical, plumbing, and steel demand rose alongside tariffs.
US development made uneven progress in the first half of 2026, with construction activity skewing toward projects deemed higher-return, including data centers, power infrastructure, advanced manufacturing, and pharmaceutical production, according to Commercial Observer. The outlet links weaker performance in other property types, such as office, retail, and higher education, to ongoing US tariff policies. In an interview with Commercial Observer, Tom Park, vice president of national strategic supply chain at Skanska, said demand remains strong but the market is “hot and cold,” with project activity concentrated in data centers, semiconductors, and life sciences. Park attributed rising supply chain costs and constraints to multiple factors, including Section 338 tariffs on Canada, delays tied to petrochemical import ships passing through the Strait of Hormuz, and domestic pricing pressure from supply and demand imbalances. He said tariffs also increase the ability for domestic producers to raise prices, with steel, aluminum, and copper tariffs feeding through to derivative products. Lead times for materials have lengthened, moving from 24 to 36 weeks to 40 to 50 weeks, which Park said signals metal mills and fabricators running at full capacity. Commercial Observer also reported that the trend is expected to persist for the next six to 12 months, as private nonresidential construction spending is projected to rise from 1.7 percent in 2019 to 5.4 percent in 2025, and Skanska continues to win contracts for life sciences projects.
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