Regional analyses
Americas
United States
Cost escalation: 4%
Economic growth: 1.7% ¹
Construction activity is expected to increase in 2026, despite cooling economic growth. Job creation is slowing. Immigration is lower. Tariffs are also pushing prices up, and cuts to non-defence spending are having an effect. The expectation is that growth will improve as these effects fade and inflation continues to ease.
Data centres will lead the construction pipeline. Demand comes from cloud adoption, AI, edge computing and wider digital change. The challenge will be pace. Priorities can shift quickly, so success depends on teams that can adjust fast and keep delivery moving. We’ll see more reuse of existing buildings, plus more modular and prefabricated build methods to speed delivery.
Energy will be the other big growth area. Investments are focused on wind and solar, grid upgrades, smart-grid initiatives and battery storage. Delivery is also being shaped by a stronger push for lower-carbon outcomes, energy efficiency and climate resilience in both new builds and retrofits. Tariffs continue to encourage more local sourcing across supply chains.
Construction costs are forecast to rise by 4% in 2026. The main drivers are tariff uncertainty, labour shortages and material price increases. In the US, the biggest cost pressure tends to be location, not sector-led. The tightest markets will be those with heavy demand, saturated labour pools, and mega projects. Projects that import materials or need specialist trades will face the most pressure, especially electrical and HVAC (heating, ventilation and air conditioning). To secure enough people, projects often rely on incentives, per diems or relocation support, which lifts costs and adds delivery risk.
This points to a clear approach for 2026: plan early, buy early where it matters, and stay flexible. Projects with strong contractor outreach, flexibility in material choices, clear visibility of labour and equipment availability, proactive lead time mitigation strategies, and early procurement will be better placed to manage price swings and protect schedules.
Peru
Cost escalation: 4.5-5.5%
Economic growth: 2.7-2.8% ²
Construction activity in Peru will grow in 2026. Mining, transport, energy and social infrastructure projects, including health, education and housing, will drive this. Construction costs will rise by 4.5-5.5%. Shortages of experienced, skilled labour will be a key driver. This will be most severe for specialist, technical and supervisory roles. Meanwhile, long lead times and price volatility will push costs higher for imported materials and specialised equipment.
Cost pressure will be highest for mining, energy and infrastructure projects. There are limited numbers of contractors capable of delivering these large, complex projects. Limited capacity will translate to increased risk allowances and costs as growth continues. More standard buildings, such as offices and mid-market housing, will face lower cost pressure. This reflects a more competitive contractor landscape, standardised designs and strong use of local materials and labour.
Mexico
Cost escalation: 4.5-6%
Economic growth: 2% ³
Construction activity in Mexico will grow throughout 2026. Even as economic growth slows. Demand will come from the need to upgrade energy infrastructure, data centres, and major transport improvement programmes. Nearshoring continues to create new industrial space. This is most visible along key freight and rail corridors.
Construction costs will rise by 4.5-6%. This is largely due to a lack of skilled labour, particularly MEP (mechanical, electrical and plumbing) specialists. Price shifts in imported electrical and rail equipment and limited contractor capacity will also increase costs. Projects with major electrical or rail systems are more likely to face delays and higher costs.
1 OECD Economic Outlook | OECD - OECD Economic Outlook, Volume 2025 Issue 2 | OECD
2 OECD Economic Outlook | OECD Peru: OECD Economic Outlook, Volume 2025 Issue 2 | OECD and independent private sector research
3 IMF World Economic Outlook and independent private sector research
“In 2026, the US construction market won’t wait for late decisions. Early planning with data, early procurement and the ability to adapt quickly will be critical to managing cost, labour risk and delivery certainty.”
Rachel Personius
Director, USA
Currie & Brown