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Market Conditions

Q3 2026

About this report 1|

Lead times

Prices

Market impact

Featured: Competing for constrained resources

Contributors

Legal notice

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About this report What does it mean to capture the state of a market that shifts dramatically from one day to the next? As I write this in early September 2026, trade talks between the U.S. and Canada have broken down, and broader geopolitical pressures are reshaping markets around the world. That landscape will almost certainly have shifted again by the time you read this. However, life science and food and beverage owners can’t simply wait for greater certainty before launching their CapEx projects. Competition for construction labor is intensifying by the day. Contractors are bracing for rising material and freight costs. Access to electrical infrastructure and adequate water supply is no longer a given. In this volatile climate, market intelligence matters more than ever. Project owners need tools to put that intelligence to use, building resilience against resilience against challenges that are compounding beyond their control. That’s the goal at CRB in general, and in this report in particular. Backed by insights from our procurement database and trade partner network, we’ve applied our firsthand project experience to the difficult problem of moving forward without market certainty. The result is a practical, data-driven report to help teams execute on CapEx projects and to mitigate risks with confidence, no matter what comes in the next quarter, the next week… or even the next hour. Sincerely,

John Lupa Vice President of National Construction, CRB

Lead times

CRB’s procurement team combines ongoing feedback from trusted strategic trade partners and suppliers with AI-enabled monitoring tools. This approach keeps our lead-time database current and provides our clients with real-time procurement insights specific to the life science and food and beverage industries. We continuously expand the equipment and materials we track as market conditions and project needs evolve. Please note that these lead times exclude the submittal and drawing approval phase.

FIGURE 1 Database of lead times for equipment and materials

CRB Lead Time Database CURRENT LEAD TIMES FOR EQUIPMENT AND MATERIAL: Q3 2026 Lead Time (wks)

ANSI Switchgear (3000-4000A)

Busway (Any Ampacity)

Medium Voltage Fused Switchgear (15kV class, 1200A)

Medium Voltage Fused Switchgear (4160V class, 1200A)

Medium Voltage Transformer - 3Ph - 1501-3000kva

Medium Voltage Transformer - 3Ph - 3001-5000kva

Medium Voltage Transformer - 3Ph - 45-500kva

Medium Voltage Transformer - 3Ph - 501-1500kva

MediumVoltage Transformer - 3Ph -5001+ kva

Panelboards (208V, Any ampacity)

Smart MCC

Standard MCC

Switchboard (2000A-2500A)

Switchboard (3000A-4000A)

Panelboards (480V, Any ampacity)

Dry Type Transformers (112.5kVA and below)

Medium Voltage GIS Switchgear (35kV class, 1200A)

Sanitary Filters & Housings: 1 Rd Housings

Sanitary Filters & Housings: Multi Rd Housings

Sanitary Filters & Housings: Opti-clean

Buffer Prep & Hold Skids-316SS

Buffer Prep & Hold Skids-AL6XN

Media Prep & Hold Skids-316SS

Media Prep & Hold Skids-AL6XN

Source: CRB

Equipment/Material

(continued)

Lead times

FIGURE 1 (CONT.) Database of lead times for equipment and materials

Equipment/Material

Lead Time (wks)

Chromatography Skids

Diesel Generator 200kW and below

Diesel Generator 230kW -1 Megawatt

Diesel Generator Larger than 1 Megawatt

Stainless Steel Bioreactors - ID < 98"

Stainless Steel Bioreactors - ID > 98"

Stainless Steel Vessels - ID < 98"

Stainless Steel Vessels - ID > 98"

Custom AHUs (Large Outdoor Units)

Custom AHUs (Small Indoor Units)

DOAS AHUs (Dedicated Outdoor Air System)

HDPE Piping <4"

HDPE Piping >4"

Sanitary Heat Exchangers

Semi-Custom AHUs (Large Outdoor Units)

Semi-Custom AHUs (Small Indoor Units)

Block Body Valves

Large-diameter Control Valves-Modulating < 6" valve

Large-diameter Control Valves-Modulating 6" valve

Stainless Steel Zero-Static

RO Skids

Single Use Bioreactors

Purified Water Skids

USP Water Distribution Skid

WFI Distribution Skids

Pure Steam Generators

Chromatography Columns

Single Use Bioreactor Bags

Metal Decking

Roof Joists

Source: CRB

CURRENT LEAD TIMES FOR EQUIPMENT AND MATERIAL: Q3 2026

(continued)

Lead times

FIGURE 1 (CONT.) Database of lead times for equipment and materials

CURRENT LEAD TIMES FOR EQUIPMENT AND MATERIAL: Q3 2026 Lead Time (wks)

Air-Cooled Chillers, < 250 Tons

Air-Cooled Chillers, > 250 Tons

Cooling Towers

27.5

Water-Cooled Centrifugal Chillers

Waste Neutralization Skids, < 25 GPM

Waste Neutralization Skids, 100 GPM

BioWaste Kill Skids

Boilers, 500 HP Water Tube

Boilers, 800 HP Fire Tube

CIP Skid

Insulated Metal Panels (IMP)

Modular Cleanroom Panels

Stainless Steel Tubing 316L

Stainless Steel Tubing AL6XN SF4

Sterile Pass-Thrus

Source: CRB

Equipment/Material

LOOKING FOR SOMETHING ELSE? REQUEST LEAD TIME DETAILS

Lead times

While 43% of trade partners report lead times are unchanged, majority indicated an increase. Many items are under pressure as construction activity accelerates across the U.S., impacting two distinct categories: Industry-agnostic materials Demand is building for switchgear, transformers and other electrical equipment across the market at large. Data center construction plays a key role here; activity in this sector is expected to grow by 33% in 2026 and another 25% in 2027, making up nearly half of all private construction in the U.S. The domestic structural steel market offers a good example of what happens when multiple sectors compete for the same raw materials. Overbooked mills are quoting year-long lead times and telling buyers to “wait and see” when asked about rolling capacity. In other words, the domestic steel market is operating under informal allocation. For many project teams, the only way to secure a reliable supply within expected timelines is to face the logistical complexity and rising freight costs of sourcing steel from overseas. Pharma-specific equipment As tariff uncertainty and other policy pressures incentivize pharma companies to onshore their manufacturing operations, specialized equipment vendors are under pressure to supply a growing pipeline of large-scale capital projects. This surge in demand is stretching capacity, pushing lead times higher for equipment such as vessels and super skids.

FIGURE 2

CUSTOMIZATION VS. LEAD TIME

Lead Times: How would you describe your products as compared to Q1 2026?

In a tight equipment market, customization can be a roadblock. Choosing more standard, fit-for-purpose equipment where possible will shorten the path from fabrication to operation, reducing overall lead times.

Lead Time Changes

Lead times compared to previous: Q32026 complete

Significantly increased

Stayed the same

24%

33% Somewhat increased

Source: CRB

43%

Where customization is necessary, engage suppliers early to understand capacity and co-define requirements before locking in design decisions.

Prices

Producer price indexes (PPI) are a family of indexes that measure the average change over time in selling prices received by domestic producers of goods and services. The price information is provided to the U.S. Bureau of Labor Statistics by over 16,000 establishments, providing approximately 64,000 price quotations per month. CRB uses data from PPIs to measure price movement specific to the construction industry and the products we purchase for our projects. Figure 3 illustrates two different types of indexes. The blue line is an input index that represents the most common composition of materials used in non-residential building construction projects. The yellow line is considered a selling-price index, or, in other words, an index that measures the change to final construction costs for consumers, inclusive of labor, material, overhead and profit costs. For this figure, each data point shows the percentage of change in the index value over the preceding twelve months.

FIGURE 3 Construction inputs and bid price producer price indexes

Inputs and Final Costs

30 20 10

% Change from Year Ago

0 2018

2019

2020

2021

2022

2023

2024

2025

2026

-10

Inputs to Industries: Net Inputs to New Nonresidential Construction, Excluding Capital Investment, Labor and Imports Construction (Partial): New Nonresidential Building Construction

Source: U.S. Bureau of Labor Statistics

Nonresidential construction input prices are up 7.4% from this time in 2025, continuing a steady climb that began in early 2026. Month over month, however, movement has been limited. Final consumer construction costs increased from the previous month, driven largely by continued data center activity and pharmaceutical manufacturing investment in the U.S.

Prices

Figure 4 overlays individual input indexes for common materials with the selling price index for new industrial building construction, presented as a percentage of change over the last year.

Meanwhile, the industry is bracing for what happens next. Tariff uncertainty could quickly disrupt this picture, particularly for construction materials traditionally imported from Canada. Canadian cement, for example, accounts for roughly 22% of U.S. supply, while Canadian forest and softwood products represent 24%. This deep cross-border supply chain integration leaves U.S. construction costs exposed to uncertain prices, potentially incentivizing project teams to seek alternative global sources for tariff-impacted materials.

Diesel reached a U.S. record high on Labor Day weekend 2026, and continues to rise Mid-September Diesel average

$6.23

$3.69

2026

2025

AAA Fuel Prices

The raw materials market is generally behaving as expected, with modest escalation underway for most inputs. A few key categories punctuate this relatively stable picture, though. Copper and brass mill shapes, for example, rose sharply through the spring before softening in recent months. Transportation services remain more elevated, up roughly 10% year-over-year. A modest decline in recent weeks may reflect a dip in diesel fuel prices early in July, though the bigger picture shows diesel costs up 44.2% this year.

FIGURE 4 Construction inputs and bid price producer price indexes from 2025 to 2026.

Detailed Inputs

FRED PPI - Q3 Updated: 9/14/26

15 10 5 0 Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

2026

2025 Metals and Metal Products: Steel Pipe and Tube, Stainless Steel

Special Indexes: Lumber and Plywood

Nonmetallic Mineral Products: Ready-Mix Concrete

Nonmetallic Mineral Products: Gypsum Products

Transportation Services: Truck Transportation of Freight

Rubber and Plastic Products: Other Plastics Construction Products

Metals and Metal Products: Copper and Brass Mill Shapes

Nonmetallic Mineral Products: Cement, Hydraulic

Metals and Metal Products: Fabricated Structural Metal

Construction (Partial): New Industrial Building Construction

Aug

-5

% Change from Year Ago

Source: U.S. Bureau of Labor Statistics

Prices

FIGURE 5 Raw material cost trends impacting life science and food and beverage construction.

Source: U.S. Bureau of Labor Statistics

RAW MATERIAL COST TRENDS

What trade partners are saying about fuel costs “We raised our fuel pricing.”

“Fuel costs impact the price we must charge.”

“Higher freight costs due to the cost of fuel have become a serious issue.”

“We have programs established to mitigate the situation as much as possible.”

Prices

CRB’s trade partners are readying themselves for this prolonged state of tariff uncertainty. According to our survey, conducted in Q3 2026, they’re experiencing nearly the same pricing environment they noted in Q1 2026 (Figure 6), but their expectations of future pricing conditions have changed significantly (Figure 7).

FIGURE 6

FIGURE 7

Prices: How would you describe your products as compared to Q1 2026?

Prices: Are you preparing for changes to your products in 2027?

Price Changes

Preparing for Price Changes

Prices - preparing for change 2027 - Q326 complete survey

Stayed the same

Somewhat increase

Significantly increased question

Stay the same

10%

19%

Source: CRB

19%

Are you experiencing any of the following challenges due to the state of crude oil? (multi-select) Q326 complete Specific 62%direct impacts on oil-based products.

50%

25%

50%

90%

Somewhat increased

75% FIGURE 8

Overall indirect impact on transportation costs of goods.

Are you experiencing any of the following challenges due to the state of crude oil? (multi-select)

Crude Oil Challenges 75%

25%

Overall indirect impact on transportation costs of goods.

Specific direct impacts on oil-based products.

Source: CRB

OR..

2026 PRICE EXPECTATIONS

To somewhat increase

59%

90%

To significantly increase

14%

To stay the same

27%

10%

An unpredictable oil market may be shaping at least some of these price-related concerns, as well. When asked about the impacts of crude oil supplies, three-quarters of respondents say they’re experiencing higher transportation costs. Another quarter of the respondents are experiencing more direct impacts because of petroleum-based materials in their pipeline, such as asphalt, bituminous roofing and plastics (Figure 8).

Market impact

The last quarter of 2026 is starting on uneven footing. Plans for new CapEx projects are colliding with limited labor, power, and water resources. And while material prices remain within expected ranges for now, project teams are bracing for further volatility. Recent insights from the Project Stress IndexTM (PSI) back up this picture of uncertainty. Month-over-month data shows a significant increase in project abandonments (+43.5%) and hold activity (+26.5%), with an overall stress index of 109. The “good” news: That same stress index sat at 135.7 this time last year—a reminder that the situation could always be worse. Still, concerns over increased demand, competition for raw materials, and insufficient labor availability have increased sharply across our survey since this year’s first quarter (Figure 9).

FIGURE 9 In your opinion, what factors are contributing to 2026 challenges or constraints? (multi-select)

Current Market Challenges Challenges - Q326 complete

Source: CRB

29%

Increased demand

21%

Labor shortages

17%

Material shortages

15%

Tariffs

Compared to Q1 2026

12%

Transportation Costs

No challenges or constraints yet

Other

Increased Demand:

160%

Labor Shortages:

135%

Material Shortages:

330%

Are you experiencing any of the following challenges due to the state of crude oil? (multi-select) Q326 complete

Demand for new construction is creating a highly pressurized market Data centers are often cited as the clearest driver of megaproject activity, and for good reason. But the data center boom is not alone in shaping construction demand. Onshoring incentives and rising demand for GLP-1s and other blockbuster therapies are incentivizing pharma companies to invest heavily in U.S.-based manufacturing. The pool of specialized contractors capable of executing at this scale is already relatively limited; as demand for their services climbs, more project teams will find themselves stuck in queues, waiting for highquality contractor availability and access to construction materials.

Market impact

That same competition is extending beyond contractor and material availability to critical infrastructure. As more large capital projects cluster in the same strained regions, project teams are finding it increasingly difficult to secure reliable access to power and water. Data centers are a major contributor to this strain. Demand for electricity to power that sector grew by 92% from 2020 to 2026, and analysts expect it to drive another 55% of U.S. utility demand growth over the next five years. Meanwhile, hyperscale data centers are on track to account for half of U.S. water consumption by 2028, with two-thirds of “When advising clients on site selection, construction in that sector planned in water-stressed locations. we used to start with labor and logistics. For life science and food and beverage manufacturers, this Now we’re expanding that criteria. If we means that access to power and water is as much a project put a plant here, will there be enough constraint as access to raw materials and long-lead equipment. power and water to support it? Not just In fact, CRB’s project teams are regularly hearing concerns right away, but for the future of your asset? from clients about energy and water reliability during site In today’s world, these are fundamental selection for new projects. That pressure may intensify as more questions.” manufacturers pursue all-electric facility strategies, further - Colton Koncak, Sr. Director, straining local grids. Food + Beverage Access to labor is one of the clearest risks facing today’s project teams. Contractors are feeling the impacts of a shrinking labor supply. The U.S. administration’s crackdown on immigration may be playing a role here, given that 26.3% of construction workers are foreign-born. Meanwhile, more than 20% of the U.S. construction workforce is over age 55, suggesting that the industry is about to face a surge in retirements among senior, highly experienced workers. A decade of strong demand from the technology sector has exacerbated this problem by drawing people away from the craft trades. These dynamics are weakening a construction labor market already struggling to meet demand. In response, industry leaders are investing more aggressively to rebuild the skilled trades pipeline. The Lowe’s Foundation, for example, recently launched a coalition aimed at training 1 million skilled trades workers by 2035. While the industry waits for workforce development initiatives like this one to bear fruit, delays caused by insufficient access to skilled trades remain a very real risk for today’s project teams.

Nearly 80% of life science manufacturers see skilled labor as a top three concern when choosing where to operate. That insight comes from our new Horizons: Life Sciences report. It underscores the scope of today’s constrained labor market, which impacts every phase of the facility lifecycle, from the jobsite through ongoing operation. The challenge is especially acute in life science facilities, where strict validation requirements demand specialized trade experience, further limiting the available labor pool.

Geopolitical uncertainty is driving material shortages and complicating project decisions Escalating trade conflicts demonstrate how quickly market dynamics evolve and how difficult it is for project owners to future-proof their CapEx plans. Meanwhile, oil prices continue to fluctuate, further frustrating efforts to lock in construction costs. While the war with Iran and its impacts on the Strait of Hormuz have drawn much attention and analysis, tmuch attention and analysis, today’s volatility in the oil market extends beyond this single geopolitical shock.. Nearly 50% of the world’s oil supply comes from countries impacted by prolonged conflicts, including the Russia-Ukraine war. These overlapping situations create a complex global energy picture with few obvious pathways to resolution, further limiting cost certainty for project teams.

Featured: Competing for constrained resources

Competing for constrained resources From John Lupa, Vice President of National Construction, CRB Timely access to cost-competitive raw construction materials used to be the greatest determinant of jobsite success. Now teams face new and intense competition for other critical inputs: labor, utility infrastructure, and water. The following strategies will put your team in a stronger position, helping you win the race for resources even as the playing field shifts below your feet.

1. Approach power and water like long-lead equipment. In today’s construction market, practices that were once status quo are now fraught with risk. That’s true of the way project teams approach access to electrical infrastructure and water. Once viewed as a downstream utilities consideration, access is now relevant as far upstream as site selection. Getting this decision wrong is a mistake you can’t fix with a change order. To get it right, start by defining electrical and water needs for both construction and ongoing operations, then investigate the hyper-local supply dynamics in play. Build electrical and water milestones into the construction schedule like any other critical procurement dependency, defined by clear lead times and contingencies. “Data center demand is on pace to double by 2030. When a hyperscaler ahead of you in the interconnection queue is absorbing the region’s power and water, your greenfield schedule is no longer yours to control.” - Heather Walters, LEED AP BD+C, CRB Director of Sustainable Design and Delivery 2. Leverage prefabrication. Where does it make sense to shift construction into an offsite fabrication shop? This question should be part of every project’s strategy discussion. By moving significant scopes of work out of the field, manufacturers reduce onsite skilled-trade requirements, potentially sparing a project from labor-related bottlenecks. This strategy can also improve safety and quality by taking advantage of a shop’s controlled conditions. A prefabrication strategy can also accelerate project delivery through parallel workstreams. While stick-built construction continues in the field, for example, a team in the prefabrication shop can simultaneously build critical-path elements such as structural racks, panels, and equipment skids. Many project teams pair prefabrication with the efficiencies of modularization, a related strategy in which an offsite team builds larger component (such as a central utility plant) is built offsite, transports it to the location, where the on-site team installs it as a complete module.

Featured: Competing for constrained resources

The key is to establish a prefabrication strategy early. Changing course midway through execution is costly and complex, and may undermine many of the benefits that make prefabrication worthwhile in the first place. 3. Include a pre-construction procurement leader in upstream planning. In a traditional project approach, procurement follows design. That leaves little room to proactively account for long-lead equipment or to compete successfully for critical resources. Including procurement experts in upstream planning creates more room to anticipate and respond to those constraints. Instead of isolating them in silos, this strategy integrates design and procurement as runners in a relay, sharing responsibility for the baton during handoff. In practical terms, that overlap is an opportunity to understand the market in real time. Are there other regional projects competing for the same local resources? Do suppliers have capacity? What critical-path constraints may lie ahead? Bringing deep market intelligence to bear on these questions before locking in design decisions can improve schedule and cost certainty. This “relay” approach also opens the door to earlier trade engagement and design-assist project delivery, creating a strong advantage in this pressurized construction market.

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Section

Chris Bailey, FRICS is the Senior Director and Chief Estimator, serving as an integral part of our preconstruction and project delivery strategy. He’s a dedicated leader with both strategic vision and hands-on expertise ensuring that our estimates are accurate and aligned with our clients’ goals and with industry best practices.

John Lupa is the Vice President of National Construction, bringing a disciplined, collaborative approach to construction execution, with a focus on operational excellence, Section risk management, and team development. John works closely with clients and internal stakeholders to align construction performance with project and business goals. Rob Posgai, PE is the Director of Equipment Procurement, leading strategic sourcing and procurement efforts for complex capital projects across the life sciences industry. Drawing on more than 28 years of experience in biotechnology, engineering, and global procurement leadership, he helps clients optimize equipment acquisition, strengthen supplier partnerships, and achieve project and business objectives. Valerie Silva is the Director of Procurement and has more than 15 years of experience with global cost optimization, project management and supply chain issues. She leads Section Section a team of procurement experts to offer our clients end-toend sourcing and managing of equipment and construction services for capital projects. Heather Walters, LEED AP BD+C, is the Director of Sustainable Design & Delivery, leading initiatives that integrate sustainability, energy optimization, and highperformance design into project delivery. She partners with clients and project teams to advance environmental performance, operational efficiency, and long-term value across the built environment.

CONTRIBUTORS

Colton Koncak is Senior Director of Food & Beverage, bringing extensive leadership experience in the planning, design, and execution of complex manufacturing and capital projects. He works closely with clients and multidisciplinary teams to deliver operationally effective solutions that support business growth, project performance, and production goals.

Legal notice

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although CRB endeavors to provide accurate and timely information, there is no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.

Reference data

Much of the economic information in this report is compiled from third-party resources that are available to the public and not owned by CRB. All references are included in the body of the report.

crbgroup.com

Horizons Market Conditions Q3 2026 Report