Overcoming Challenges in Emerging Technologies Construction

The construction industry is currently facing one of the most trying, volatile, yet exciting periods in its history. Similar to the enormous influx of battery plants and electric vehicle manufacturing developments about five years ago, we are now witnessing an even larger, more complex, and challenging surge in the form of countless data center and advanced technology facilities being planned and constructed across the U.S. These cutting-edge construction projects are all driven by the five main innovation platforms: artificial intelligence, robotics, energy storage, DNA sequencing, and blockchain technology.

The quick expansion of emerging technologies construction has brought significant challenges with it, placing strains on the construction labor market and material procurement, while creating higher costs and competing owner schedules, just to name a few.

With ongoing volatility across many of the resources that support construction projects, contractors and owners are being pushed to make more collaborative, well-informed decisions earlier in the project lifecycle to secure the resources necessary for successful delivery. Early engagement of trade partners has become especially critical, ensuring that critical path disciplines are involved in planning and sequencing while also providing valuable insight into material and equipment lead times.

At Ideal Contracting, we’re actively engaged in several of the emerging technology developments across the country, and there are numerous opportunities coming through each and every day. With this rapid rise in mission-critical projects, and the increasingly ferocious pace at which they are being constructed, one material that we are seeing increasingly higher lead times for is steel, one of the most critical elements within any type of construction.  

Navigating the Industry’s Current Material Constraints

For some time, the standard lead time for fabricators to procure steel from the steel mills in the U.S. has been approximately +/- 24 weeks. That duration has since jumped over 10 weeks—now sitting at around 36-40 weeks—a clear indication that demand is outpacing the supply. As a result, the total elapsed time from project award to steel delivery on site has extended to approximately 44–50 weeks. Additionally, we are experiencing an unpredictable climate when it comes to price markets, geopolitical uncertainties, and fluctuating economic conditions. Thus, now more than ever, the early engagement of trade partners and procurement of long lead items, such as steel, mechanical, and electrical equipment, is a vital and necessary component to a successful project.

Ideal Contracting has forged relationships with some of the nation’s largest steel fabricators and general contractors, and in doing so, has positioned itself as a prime steel erection partner. Our partnerships are built on reliability and a mutuality that serve both sides of the relationship, resulting in the delivery of some of the most advanced projects in the U.S. In order to secure the necessary materials for the projects we see come across our news tickers today, owners and general contractors need reliable, time-tested partners with the capabilities and connections to handle the complexities surrounding these projects and the proven work history to back it all up.

Meeting Escalating Labor Demands

Another grueling challenge that has arisen with the influx of emerging technology projects is the demand on the skilled labor market. As the number of these projects increases, coupled with the sheer size and scale of some of these developments, acquiring the skilled labor to support the jobs is growing increasingly challenging, with regional variations based on where many of these projects are being built. This is especially true with mechanical, electrical, and plumbing (MEP) tradespeople, of which there is a huge demand for data center projects specifically. Ironworkers and operators are equally important to the emerging technologies projects spread throughout the country, as they are an essential part of delivering the core and shell of these buildings.

Ideal’s ability to support emerging technology construction developments is further strengthened by our team’s excellent relationships with trade unions throughout the U.S. We are proud partners with the Ironworker Management Progressive Action Cooperative Trust, allowing Ideal to draw quality skilled union ironworkers for our projects, no matter the location or size.

Beyond our vast steel erection services, Ideal Contracting also self-performs heavy civil construction, an equally critical component of emerging technology projects, which often require extensive underground infrastructure to support complex electrical and mechanical systems. Altogether, our team has more than 400 self-perform professionals to support our wide landscape of projects.

In today’s unpredictable market, where conditions can shift from week to week, it’s essential to partner with trusted trade professionals who bring the labor strength, material procurement capabilities, and overall expertise required to deliver safe, efficient, and well-managed projects. Without strong partners and collaborative expertise, projects are likely to experience schedule compression, cost exposure, and redesign risks that ultimately delay delivery. With hundreds of these emerging technology developments already underway, and many more on the horizon, the future of our industry remains strong and full of opportunity.