August constructsteel newsletter

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Expert Q&A

Steel geostructural solutions for flood mitigation – insights from Dean Abbondanza

Dean Abbondanza is Director of Engineering and Business Development at JD Fields & Company, Inc. With a background in civil engineering and more than 30 years of experience in engineering sales and technical marketing, Dean has built a recognised reputation in the deep foundation industry.

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Technical trends

Accelerating the delivery of tech-focused capital projects

A robust contracting and capital procurement strategy is critical to overcoming challenges in constructing key infrastructure such as data centers and semiconductor manufacturing plants.

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Construction market trends

United States

X Values Permits (LHS, SAAR Millions) Output (RHS, SAAR USD millions)
Jan-19 55.3 -1.81
Feb-19 50.3 -2.66
Mar-19 47.8 0.97
Apr-19 50.5 1.66
May-19 50.2 3.86
Jun-19 49.1 8.02
Jul-19 50.1 10.30
Aug-19 47.2 11.08
Sep-19 49.7 12.50
Oct-19 52 13.34
Nov-19 51.9 17.27
Dec-19 52 13.84
Jan-20 52.2 14.18
Feb-20 53.4 11.40
Mar-20 33.3 8.20
Apr-20 29.5 3.22
May-20 32 0.22
Jun-20 40 -0.37
Jul-20 40 -2.72
Aug-20 40 -6.70
Sep-20 47 -7.32
Oct-20 47.5 -7.19
Nov-20 46.3 -9.52
Dec-20 42.3 -8.85
Jan-21 44.9 -7.28
Feb-21 53.3 -7.27
Mar-21 55.6 -3.94
Apr-21 57.9 -1.10
May-21 58.5 -0.79
Jun-21 57.1 -0.62
Jul-21 54.6 0.52
Aug-21 55.6 2.37
Sep-21 56.6 3.17
Oct-21 54.3 3.51
Nov-21 51.0 7.13
Dec-21 52.0 7.84
Jan-22 51.0 9.83
Feb-22 51.3 12.99
Mar-22 58.0 11.42
Apr-22 56.5 16.48
May-22 53.5 18.39
Jun-22 53.2 18.59
Jul-22 51.0 21.67
Aug-22 53.3 23.07
Sep-22 51.7 25.88
Oct-22 47.7 25.63
Nov-22 46.6 25.85
Dec-22 48.4 28.01
Jan-23 49.3 30.07
Feb-23 48.0 30.11
Mar-23 50.4 31.05
Apr-23 48.5 29.97
May-23 51.0 28.89
Jun-23 50.1 27.75
Jul-23 50.0 24.04
Aug-23 48.1 25.31
Sep-23 44.8 22.18
Oct-23 44.3 22.90
Nov-23 45.3 21.55
Dec-23 45.4 19.22
Jan-24 46.2 11.96
Feb-24 49.5 9.77
Mar-24 43.6 7.76
Apr-24 48.3 4.54
May-24 42.4 3.21
Jun-24 46.4 2.93
Jul-24 48.2 1.90
Aug-24 45.7 0.51
Sep-24 45.7 -0.28
Oct-24 50.3 -2.74
Nov-24 49.6 -3.98
Dec-24 44.1 -5.97
Jan-25 45.6 -3.16
Feb-25 45.5 -3.07
Mar-25 44.1 -4.06
Apr-25 43.2 -3.75
May-25 47.2 -3.41
Jun-25 46.8 -3.99

U.S. single family homebuilding falls to 11 month low in June due to elevated mortgage rates and economic uncertainty. Non residential output falls again in Q2.

Private residential output down -0.7% m-o-m (-6.2% y-o-y) in June; Building permits down -0.1% m-o-m (-4.7% y-o-y) in June.

Private non-residential output down -0.3% m-o-m (-4% y-o-y) in June. Architecture Billings Index (ABI) down to 46.8 in June from 47.2 in May (< 50, contraction).

China

X Values Floor space started
Jan-19 17.91
Feb-19 13.08
Mar-19 10.69
Apr-19 13.08
May-19 11.15
Jun-19 9.12
Jul-19 6.61
Aug-19 6.95
Sep-19 6.05
Oct-19 11.01
Nov-19 8.02
Dec-19 8.26
Jan-20 -6.58
Feb-20 -17.65
Mar-20 -30.64
Apr-20 -18.42
May-20 -8.57
Jun-20 3.82
Jul-20 7.59
Aug-20 7.70
Sep-20 3.91
Oct-20 1.28
Nov-20 1.84
Dec-20 4.71
Jan-21 11.84
Feb-21 24.91
Mar-21 8.31
Apr-21 -4.99
May-21 -10.93
Jun-21 -6.07
Jul-21 -9.99
Aug-21 -13.12
Sep-21 -17.42
Oct-21 -21.25
Nov-21 -22.64
Dec-21 -28.58
Jan-22 -24.11
Feb-22 -23.13
Mar-22 -17.49
Apr-22 -28.93
May-22 -36.03
Jun-22 -43.82
Jul-22 -44.15
Aug-22 -45.33
Sep-22 -45.13
Oct-22 -42.13
Nov-22 -43.85
Dec-22 -43.81
Jan-23 -40.34
Feb-23 -27.45
Mar-23 -19.16
Apr-23 -24.24
May-23 -28.66
Jun-23 -29.59
Jul-23 -29.12
Aug-23 -27.71
Sep-23 -21.52
Oct-23 -19.70
Nov-23 -11.31
Dec-23 -9.94
Jan-24 -11.57
Feb-24 -22.97
Mar-24 -28.35
Apr-24 -23.08
May-24 -21.01
Jun-24 -19.48
Jul-24 -21.46
Aug-24 -19.83
Sep-24 -18.95
Oct-24 -21.22
Nov-24 -24.28
Dec-24 -23.27
Jan-25 -23.62
Feb-25 -23.92
Mar-25 -24.80
Apr-25 -22.70
May-25 -19.8
Jun-25 -16.3

China’s property market shows gradual but uneven stabilisation as the government continues to support the sector.

The 3 month moving average y-o-y decline in floor space started reached -16% in June; floor space sold was down -5% y-o-y in June.

Europe

X-values PMI (LHS) Output (RHS, %, y-o-y)
Jan-19 50.6 0.00
Feb-19 52.6 5.71
Mar-19 52.2 6.35
Apr-19 52.1 2.78
May-19 50.6 2.59
Jun-19 50.8 1.48
Jul-19 50.6 1.18
Aug-19 49.1 0.59
Sep-19 50.5 0.49
Oct-19 50.7 0.69
Nov-19 50.6 0.69
Dec-19 51.3 -1.64
Jan-20 51.9 4.28
Feb-20 52.5 -0.29
Mar-20 33.5 -16.38
Apr-20 15.1 -31.40
May-20 39.5 -12.06
Jun-20 48.3 -5.34
Jul-20 48.9 -4.37
Aug-20 47.8 -1.27
Sep-20 47.5 -3.69
Oct-20 44.9 -3.32
Nov-20 45.6 -2.14
Dec-20 45.5 0.10
Jan-21 44.1 -6.01
Feb-21 45.0 -7.06
Mar-21 50.1 16.24
Apr-21 50.1 41.27
May-21 50.3 10.95
Jun-21 50.3 3.18
Jul-21 49.8 1.52
Aug-21 49.5 -1.58
Sep-21 50 1.71
Oct-21 51.2 2.22
Nov-21 53.3 0.80
Dec-21 52.9 -1.96
Jan-22 56.6 4.26
Feb-22 56.3 7.39
Mar-22 52.8 2.28
Apr-22 50.4 1.79
May-22 49.2 2.29
Jun-22 47 1.59
Jul-22 45.7 1.30
Aug-22 44.2 2.51
Sep-22 45.3 0.59
Oct-22 44.9 0.99
Nov-22 43.6 1.28
Dec-22 42.6 0.00
Jan-23 46.1 0.78
Feb-23 47.6 2.03
Mar-23 45.0 0.58
Apr-23 45.2 1.37
May-23 44.6 1.95
Jun-23 44.2 1.86
Jul-23 43.5 3.26
Aug-23 43.4 1.86
Sep-23 43.6 2.66
Oct-23 42.7 1.37
Nov-23 43.4 0.58
Dec-23 43.6 3.09
Jan-24 41.3 0.19
Feb-24 42.9 -1.61
Mar-24 42.4 -0.29
Apr-24 41.9 -0.97
May-24 42.9 -2.39
Jun-24 41.8 -1.44
Jul-24 41.4 -2.49
Aug-24 41.4 -1.44
Sep-24 42.1 -2.40
Oct-24 43 -1.54
Nov-24 42.7 -0.19
Dec-24 42.9 -0.10
Jan-25 45.4 0.19
Feb-25 42.7 -0.77
Mar-25 44.8 -0.87
Apr-25 46 4.39
May-25 45.6 3.04
Jun-25 45.2
Jul-25 44.7

EU leading indicators show that the malaise in construction continues with declining new orders, employment and activity.

Eurozone construction down -1.7% m-o-m (3.0% y-o-y) in May; Buildings down -1.3% m-o-m (7.2% y-o-y) in May; Civil engineering down -0.7% m-o-m (2% y-o-y) in May; The IHS Markit Eurozone Construction PMI down to 44.7 in July from 45.2 in June (< 50, contraction).

India

X Values Avg industrial production (y-o-y)
Jan-19 1.4
Feb-19 1.8
Mar-19 5.0
Apr-19 4.3
May-19 2.9
Jun-19 0.2
Jul-19 2.0
Aug-19 -0.7
Sep-19 -5.7
Oct-19 -5.4
Nov-19 0.3
Dec-19 0.9
Jan-20 1.4
Feb-20 5.1
Mar-20 -9.0
Apr-20 -44.4
May-20 -21.1
Jun-20 -12.1
Jul-20 -8.0
Aug-20 -7.5
Sep-20 -0.3
Oct-20 -1.8
Nov-20 -1.7
Dec-20 -0.3
Jan-21 0.7
Feb-21 -3.7
Mar-21 12.6
Apr-21 62.6
May-21 16.4
Jun-21 9.4
Jul-21 9.9
Aug-21 12.2
Sep-21 5.4
Oct-21 8.7
Nov-21 3.2
Dec-21 4.1
Jan-22 4.0
Feb-22 5.9
Mar-22 4.8
Apr-22 9.5
May-22 19.3
Jun-22 13.1
Jul-22 4.8
Aug-22 4.2
Sep-22 8.3
Oct-22 0.7
Nov-22 5.7
Dec-22 8.3
Jan-23 9.7
Feb-23 7.4
Mar-23 4.2
Apr-23 4.6
May-23 5.2
Jun-23 8.4
Jul-23 8.5
Aug-23 13.4
Sep-23 9.5
Oct-23 12.7
Nov-23 7.9
Dec-23 5.1
Jan-24 4.2
Feb-24 7.1
Mar-24 6.3
Apr-24 6.9
May-24 6.9
Jun-24 5.0
Jul-24 6.3
Aug-24 -1.5
Sep-24 2.4
Oct-24 3.8
Nov-24 5.8
Dec-24 5.1
Jan-25 5.1
Feb-25 3.4
Mar-25 4.5
Apr-25 1.0
May-25 1.2
Jun-25 1.7

India’s core sector growth slowing and indicating a broad weakness in industrial activity.

Weighted average of eight core industries output up by 1.7 y-o-y in June; production of steel up 9.3%, cement up 9.2% y-o-y.

 

Construction news headlines

construction market and regulations

North America:

According to the latest report by NAHB, multifamily completions in the US hit a 38-year high with 608,000 units, driven by high-density buildings, in 2024. The South led with 48% of completions, followed by the West at 27%. Rental buildings dominated, comprising 95% of completions. The surge in completions presents potential discount buying opportunities for investors in high-supply markets like Austin and Phoenix.

Link

North America:

US hotel room construction hit a 20-quarter low in June, with 138,922 rooms under construction, marking a 11.9% year-over-year decline, according to CoStar. Economic uncertainty, rising construction costs, and decreased hotel demand contribute to this trend. Most rooms under construction are in upscale segments, with significant concentration in the South. Despite a stable travel outlook, CoStar and Tourism Economics have downgraded growth projections for 2025 and 2026 due to macroeconomic concerns.

Link

Europe:

The US and EU have established a framework agreement setting a 15% tariff on most EU imports, impacting the construction industry, particularly in steel and aluminium. The agreement includes plans to work toward a quota system for these materials, which currently face higher US tariff. The EU’s commitment to invest $600 billion in the US could influence construction projects. Finalisation details are pending, with an Aug. 1 deadline for country-specific tariffs approaching.

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Europe:

The EU construction market faces a decline in investment, driven by a 7.7% drop in residential construction in 2024, with a further 3.9% decline expected in 2025. High interest rates and reduced credit access have impacted housebuilding, particularly in Italy, Denmark, and Sweden. Conversely, civil engineering grew by 5.9% in 2024, fuelled by public investment and green projects, and is projected to grow by 5.4% in 2025. Non-residential construction remained flat, with varied performance across member states.

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Asia:

Following a brief conflict with Cambodia, Thailand is allocating 25 billion baht (US$771 million) for reconstruction efforts. The conflict, which began on July 24, resulted in over US$300 million in domestic damage and displaced more than 300,000 people. Deputy Prime Minister Pichai Chunhavajira indicated that the budget might need to be increased. Reconstruction will focus on construction and house repairs. Cambodia has yet to announce a formal reconstruction budget but is assessing transport infrastructure damage.

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Asia:

China has allocated 800 billion yuan (US$111 billion) for strategic construction projects to advance major national strategies. The investment will fund 1,459 projects, focusing on ecological restoration in the Yangtze River basin, transportation infrastructure, the new western land-sea corridor, high-standard farmland, water conservancy, and urban underground utilities. This initiative aims to expand effective investment and boost consumption.

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Building materials and construction technologies

North America:

Detroit is piloting a program using drones and AI to enhance energy efficiency in municipal buildings. Drones capture thermal and visible images, which Lamarr.AI’s platform analyses to create 3D models and energy simulations. This identifies thermal inefficiencies and structural issues, enabling targeted upgrades. The initiative, in collaboration with Michigan Central and Newlab, exemplifies public-private innovation, offering a faster, cost-effective, and scalable solution for building assessments.

Link

Europe:

Leica Geosystems has introduced a 3D scanning solution designed for smaller contractors. This package includes a scanner, and an integrated app, enabling quick 360-degree scans with high-resolution imagery. Aimed at reducing costs and complexity, it supports precise measurements and efficient modelling, compatible with CAD and BIM software. This lightweight system offers an accessible entry into laser scanning for smaller-scale projects.

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Middle East:

AI71 has launched SuperHive, an AI platform transforming construction projects with AI, real-time intelligence, and automation. It accelerates project delivery, enhances risk management, and optimises asset performance. Key features include AI-powered compliance automation, augmented design, predictive scheduling, and digital twins for smart asset management. SuperHive supports large-scale infrastructure digitisation, boosting productivity and reducing manual work, providing a robust ecosystem for public housing, urban development, and smart cities.

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Europe:

Saint-Gobain UK & Ireland has partnered with Vector Labs to explore integrating advanced nanomaterials, like graphene, into construction products. This collaboration aims to enhance performance and reduce environmental impact, focusing initially on gypsum products.

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Construction sector players

North America:

Home Depot’s strategic acquisition of GMS for $4.3 billion, through its SRS Distribution subsidiary, aims to enhance its pro customer offerings. This move, valued at $5.5 billion including debt, will expand SRS’s distribution network to over 1,200 locations. The acquisition aligns with Home Depot’s growth strategy, leveraging synergies from its previous SRS acquisition. Despite a slowing housing market, Home Depot’s Q1 net sales rose 9.4%, underscoring their robust pro market focus.

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North America:

PCL Construction has appointed Tyler Kautz as VP of Data Centers, reflecting its strategic focus on the booming data centre market, projected to reach $1.3 trillion by 2035. Kautz’s leadership in the Mission Critical Center of Excellence and his expertise in complex projects position PCL for growth in high-tech markets. Despite concerns of a market bubble, PCL remains optimistic about future prospects in this sector.

Link

Europe:

Skanska’s strategic selectivity in project acquisition has been pivotal in maintaining its financial stability, as highlighted in its Q2 earnings report. The firm’s U.S. construction sector remains a key revenue driver, contributing significantly to its 1.8 billion Swedish crowns operating income. Despite a 30% year-over-year decrease, Skanska’s backlog remains robust, with 268 billion crowns in projects. CEO Anders Danielsson remains optimistic about prospects, particularly in U.S. infrastructure, despite challenges in commercial property development.

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Europe:

Goldman Sachs Alternatives has acquired a majority stake in Mace Consult, the program management arm of Mace Group. The deal allows Mace Consult to operate independently, focusing on global growth and strategic acquisitions. With £687 million in revenue last year, Mace Consult is involved in major projects like the Hudson Tunnel and Qiddiya megaproject. CEO Davendra Dabasia will continue to lead, while Mace shareholders retain minority stakes. The investment aims to bolster growth, especially in North America and digital solutions.

Link

Europe:

Volvo Construction Equipment (Volvo CE) reported a 6% decline in Q2 2025 net sales, totalling SEK 22,906 M (US$2.34 billion), attributed to market uncertainty in Europe and North America. Despite this, growth was noted in Africa, Oceania, and notably China, with a 26% market development increase. Strategic moves, including acquiring Swecon and expanding production in South Korea, Sweden, and North America, position Volvo CE for future growth, focusing on electrification and enhanced service capabilities.

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Asia:

L&T Energy GreenTech, a subsidiary of Larsen & Toubro (L&T), is advancing plans to construct India’s largest green hydrogen plant at IOCL’s Panipat Refinery. This strategic move underscores L&T’s commitment to leading India’s energy transition and enhancing its partnership with IOCL.

Link:

Steel solutions spotlight:

Arcorox - ArcelorMittal
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