Construction analysis
Cost indexes: Q2 2026 Construction Cost Escalation Outlook
Construction costs continue to shift across the US as market conditions evolve. Our Q2 2026 outlook (April–June) shows year-on-year changes in output costs for key cities. The changes are shown as percentages.
The CBI cost index compares markets using Washington, DC as the base (set at 100). It tracks labor rates, material prices, and market activity in each location. The index shows how costs differ from one market to another. For example, a project that costs $5.5 million in DC would cost $8.6 million in New York City/Manhattan.
Virginia
Virginia has a strong mix of semiconductors, pharmaceuticals, and data centers. This mix supports industry growth.
Micron’s broader $200 billion plan includes expanding its fab in Manassas, Virginia. The project is expected to create about 90,000 direct and indirect jobs. These include Micron jobs, contractor work, and supply chain roles. The expansion will help local communities by adding new roads and buildings. It will also support infrastructure and job training for chip.7
CleanArc VA1 is a $3 billion data center in Caroline County. It will be built in stages through 2035. When finished, the facility will require nearly 1 gigawatt of power capacity. At full size, the project is expected to create about 50 new jobs in Virginia. The CleanArc data center is set to open in Q2 2026.8
Munters is expanding its facility in Daleville. The company plans to spend about $30 million. The site will make cooling equipment for data centers. The expansion adds 200,000 square feet of space. This brings the total size to more than 500,000 square feet. The project is expected to create about 270 jobs.9
Eli Lilly is investing $5 billion in a cancer drug plant in Richmond. The company is a global leader in medicine. The project is expected to create about 1,800 construction jobs during development. When the plant opens, it will employ about 650 workers. These jobs include highly skilled and highly paid scientists, lab staff, and engineers.10
For projects in Virginia, demand for data centers and advanced manufacturing is high. It will strain power, skilled labor, and key materials such as electrical equipment. Early coordination and procurement are critical to keep projects on track.
Georgia
Construction activity in Georgia is strong. Investment in EV plants is rising. Power and grid work is also expanding.
Rivian is building a $5 billion electric vehicle plant at Stanton Springs. The plant will help meet demand in the US market. The site will expand vehicle output across the country. By 2028, it is expected to produce up to 400,000 vehicles each year. By 2030, the project is set to create about 7,500 long‑term jobs. These roles will support the local economy and the US electric vehicle sector.11
Georgia is also home to a new PFIFFNER Group plant in Franklin, Heard County. The company is investing $18.5 million in this new site, which broke ground in March 2026. Over the next ten years, the project will bring 60 full-time jobs to the local area. The facility will make key parts used in high‑voltage power systems, including instrument transformers and transformer bushings. These products will support both utility companies and equipment makers. The plant is expected to open and begin operations in 2027.12
Georgia Transformer, part of the Virginia Transformer Corporation, has started a major expansion at its Rincon site. Construction began in April 2026. The project will add about 400 jobs. Demand for energy equipment is rising. Once complete, the expansion will increase production by 50 percent. This will help the site better serve utilities and energy providers. The project is due to finish in March 2027.13
For projects in Georgia, growth in EV and power infrastructure is likely to tighten contractor capacity and extend equipment lead times, reinforcing the need to secure resources early.
North Carolina
North Carolina continues to attract large building projects. These include aerospace, pharmaceutical manufacturing, and large logistics sites. Companies choose the state for its tax incentives, skilled workers, strong roads and power, and central location. Together, these projects support long-term growth and strengthen the state’s economy.
JetZero is building a $4.7 billion plane factory. It is one of the largest factory projects in the state. The project will bring long-term gains to Guilford County, with more than 14,560 jobs expected by 2063. This makes it the largest jobs deal in North Carolina’s history. The hub will support aircraft production and strengthen the state’s aerospace role.14
It also includes an expansion by Novartis, a global drug company, in Durham and Wake counties. The $771 million project broke ground in December 2025. The expansion will grow local pharmaceutical production and research. By the end of 2030, Novartis expects to add more than 700 new jobs across both counties. These jobs will support local workers and help nearby businesses grow.15
In addition, Amazon broke ground on its first robotics fulfillment center in the Greater Wilmington region in March 2025. The site is expected to open in late 2026 and will create more than 1,000 full‑ and part‑time jobs. The new center will use advanced robotics to speed up order handling and deliveries. This investment will support local growth and help nearby businesses. It also adds to the more than 27,000 jobs Amazon has created in North Carolina since 2010, along with over $12 billion in total investment. The facility will cover about 650,000 square feet, with more than 3 million square feet of floor space across four and a half levels.16
For projects in North Carolina, strong demand across sectors will sustain competition for labor and subcontractors, with potential impacts on pricing and schedules.
New York
New York is also seeing strong growth in construction activity across the state. While it has fewer large projects than some other states, the size of each project is significant. Much of this growth comes from major investments in semiconductor manufacturing. These projects require advanced facilities and long build times. Together, they show New York’s growing role in the high‑tech and chip‑making industry.
Micron broke ground on its New York chip plant in January 2026. The site is part of a much larger $200 billion investment that also includes projects in Idaho and Virginia. In New York alone, the full plan calls for four large semiconductor fabs. These facilities will support advanced chip production and long‑term growth. Manufacturing is expected to begin in 2030, with production increasing steadily through the rest of the decade.17
New York also hosts an Edwards Vacuum facility in Genesee County. The $319 million project supports the semiconductor supply chain. Construction began in April 2024 and is now reportedly close to completion. The investment followed new federal and state support for chip production, including the CHIPS and Science Act and New York’s Green CHIPS law. These programs have helped drive robust growth in the US chip industry. They also support Micron’s historic $100 billion investment in Central New York, which is expected to create 50,000 jobs.18
Beyond the states noted above, other areas are seeing fast growth in technology building. These include Texas, Louisiana, Idaho, and Ohio. Each state is drawing large projects tied to advanced manufacturing and technology. Together, they show how technology investment is spreading across the country.