As we head into 2026, the North American construction landscape continues to shift under pressure from labor shortages, material cost volatility, sector growth, and sustainability requirements. For building product manufacturers, understanding these macro trends is crucial, not just to plan for demand, but to align product development, marketing strategy, and sales outreach with where the market is headed next.
In this blog, we break down seven key trends, highlight the most important data behind them, and explain exactly what each one means for you.
- Persistent Labor Shortages
- Data Center Construction Surge
- Material Cost Inflation & Tariff Pressures
- Residential Slowdown, Infrastructure Growth
- Sustainability & Net-Zero Retrofit Mandates
- Modular Construction Scaling
- Rising BIM Adoption Rates
Photo by Tuaans on Unsplash
1. Persistent Labor Shortages
The construction labor gap remains one of the industry’s most pressing challenges. In 2025, the U.S. construction sector needed to attract about 439,000 net new workers just to meet demand, and that number is projected to rise as work increases in 2026 with the need for 499,000 new workers. This shortage continues to strain project delivery, wage growth, and scheduling across markets.
Labor challenges include difficulty filling craft positions, and a workforce that is aging faster than new entrants can replace retirees. This gap influences everything from cost escalation to extended timelines, making workforce development and talent retention strategic priorities for firms.
What this means for manufacturers: Labor scarcity increases demand for products and systems that can reduce onsite complexity, simplify installation, or enable modular prefabrication.
2. Data Center Construction Surge
As the backbone of digital infrastructure, data centers remain one of the fastest-growing construction sectors. Activity jumped about 33% in 2025 and is expected to climb another 20% in 2026, fueled by expanding AI workloads and cloud capacity.
The rapid expansion of data center construction also ties directly to rising energy demands. According to The Wall Street Journal, data centers are expected to consume more electricity than Japan does today by 2030, with demand from AI-optimized facilities alone projected to quadruple as AI workloads expand.
What this means for manufacturers: Products suitable for data center environments (fireproofing, electrical infrastructure, HVAC support, specialized enclosures, and modular components) will see continued interest, but keep in mind that energy and grid constraints may affect project feasibility.
3. Material Cost Inflation & Tariff Pressures
Construction input prices and material cost trends continue to exert pressure on margins and budgets. Though specific year-over-year percentage increases vary by material and region, industry reporting shows tariff-affected goods like iron and steel experienced accelerating price rises through 2025, leading to unpredictability in procurement.
This volatility can add thousands to project costs and complicate budgeting amid tight financing conditions. For example, tariffs on imported building materials have been linked to increases in homebuilding expenses, widening the gap between market demand and construction capability.
What this means for manufacturers: Ongoing material cost inflation and tariff uncertainty are reshaping how firms evaluate products, price risk, and make specification decisions. When costs fluctuate, they become more cautious and favor manufacturers who can provide transparency and early insight into potential price impacts.
4. Residential Slowdown, Infrastructure Growth
Some segments like single-family residential are expected to see only modest rebounds in 2026, while other areas such as infrastructure (power, water) may show stronger growth. According to industry forecasts, nonresidential construction may grow modestly (~2.6%), but data center, aviation, and water infrastructure segments are outpacing the broader market.
What this means for manufacturers: Diversifying product portfolios to serve both private commercial work and public infrastructure can help stabilize demand. Infrastructure projects often have longer lead times and specification complexity, both of which benefit from readily accessible design files on platforms like CADdetails.
5. Sustainability & Net-Zero Retrofit Mandates
Sustainability requirements are steadily accelerating across North America:
- In Canada, major construction projects must meet government-mandated embodied carbon reduction requirements, including a 30% reduction target and aggressive retrofit rates with the goal of achieving net-zero emissions by 2050.
- In the U.S., Building Performance Standards (BPS) at the state and local level are being adopted to require emissions and energy performance improvements in existing building, often tightening targets over time and compelling retrofits. At least 40 cities are expected to have building performance standards in place aimed at net-zero or emissions-reduction goals for existing structures by the end of the year.
What this means for manufacturers: Manufacturers who offer high-quality Environmental Product Declarations (EPDs), lifecycle assessments, and sustainability-aligned performance data are better positioned to win specifications.
6. Modular Construction Scaling
Modular and prefabricated construction is becoming more common as builders look for ways to manage labor shortages and rising costs. In North America, the modular construction market is expected to reach nearly $29.7 billion by 2033, growing at about 8.2% annually between 2026 and 2033.
What this means for manufacturers: Manufacturers who offer products designed for prefabrication (think standardized sizes, clear BIM content, and configurable assemblies) will be better positioned to support faster, more efficient projects.
7. Rising BIM Adoption Rates
Building Information Modeling (BIM) is now standard across the AEC (Architecture, Engineering, and Construction) industry. According to the AIA Firm Survey Report 2024, 95% of large firms and 88% of mid-sized firms use BIM as a core part of their practice. Design firms are also increasingly using AI-powered tools for automation and clash detection, reflecting a growing reliance on digital-first project workflows.
What this means for manufacturers: High-quality, spec-ready BIM content and seamless integration into digital project environments are now table stakes for being considered in specification decisions. In other words, manufacturers that make it easy for design teams to find, use, and trust their BIM content are far more likely to stay competitive.
If you need support creating or optimizing your BIM assets, our Technical Member Program can help.
Actionable Takeaways for Manufacturers
For manufacturers serving the AEC industry, these trends aren’t abstract—they directly influence how and when products are specified, how your team communicates value, and where investment in content and data infrastructure matters most.
Here are a few steps you can take now to prepare for what’s ahead:
- Prioritize digital product content (BIM, CAD, specs) aligned with AEC workflows
- Strengthen your sustainability reporting and carbon footprint transparency
- Design products that fit modular and prefabricated environments
- Create educational content around specialty segments like data centers and infrastructure to support early-stage engagement
- Anticipate cost and labor constraints by offering products that reduce installation complexity and risk
By aligning your strategies with these macro trends, you can both anticipate demand shifts and support AEC professionals more effectively as the industry evolves into 2026 and beyond.
One strategy that never goes out of style? Better product visibility. Learn how CADdetails can help expand your reach in the AEC community, or book a demo with one of our experts.