“Advanced manufacturing, data centers and industrial have been the strongest sectors,” Zucker says. “Reshoring and federal incentives are driving manufacturing growth, while AI and cloud expansion are accelerating demand for mission-critical facilities.”

Energy Sector Diversifying

Automakers and their partners have been especially active across Michigan, Indiana and Ohio, where multibillion dollar electrification and supply chain projects are underway, adds Chuck Binkowski, chief operating officer at Barton Malow.

Energy is equally strong—and diversifying. Utility scale solar has surged, supported by both state policy and demand from new industrial loads, notes Scott Austin, general manager of renewables and clean power at Bechtel, adding that clean energy is now central to the region’s infrastructure boom.

A crucial issue ahead is power availability.

“Power availability and utility coordination will increasingly shape project viability, particularly for data centers and advanced manufacturing,” Zucker says.

Demand from AI driven data centers and electrified factories is outpacing the ability of utilities to deliver new capacity quickly. This is pushing developers to evaluate sites based on electrical infrastructure first—and often to make decisions years in advance.

At the same time, owners are demanding faster builds and more reliable pricing, which is spurring a shift in delivery models.

“Owners are demanding faster delivery and greater cost certainty, which is accelerating the shift toward more integrated design-build approaches,” Zucker says. Firms that align design, engineering and construction early “will be best positioned to deliver in this environment.”

Unprecedented Electricity Demand

Owners are prioritizing projects that are well planned, clearly funded and collaborative.

“This environment will place greater emphasis on collaborative delivery, early contractor involvement and disciplined planning,” Binkowksi says.

Austin says the power sector will see continued urgency—and complexity—as utilities and developers race to meet unprecedented electricity demand.

“We expect continued growth in renewable energy construction coupled with accelerating momentum of gas-fired generation projects,” Austin says. “Developers are choosing partners who can deliver at scale, lean into smart technologies and manage risk in a more complex market environment.”

Despite the robust outlook, all three leaders point to familiar challenges: workforce shortages, supply chain delays, market volatility and rising expectations for speed.

“Labor constraints, long lead equipment and cost volatility have been the biggest challenges,” Zucker says. Clayco has responded by locking in procurement earlier, strengthening supplier partnerships and expanding prefabrication to reduce onsite labor needs.

Barton Malow has taken similar steps. Binkowski notes that “labor availability, material escalation and long lead procurement items” continue to disrupt projects, requiring proactive intervention. His firm has leaned on early procurement, self-perform capabilities and tight collaboration with trade partners to stay ahead of issues.

Austin says Bechtel faces many of the same obstacles, particularly on large energy builds.

“Workforce availability and supply chain volatility persist as challenges across the industry,” he says. Bechtel is addressing this through early workforce planning and deeper coordination with suppliers and local building trades.

Despite the hurdles, all three are optimistic about the Midwest’s long-term competitiveness, citing its mix of skilled labor, available land and strong infrastructure. As Austin puts it, the region is uniquely suited for “delivering complex, large-scale projects.”