As we begin the new year, the PVF industry sector of our economy is still burdened by uncertainty regarding the status of the Trump administration tariffs currently under review by the Supreme Court on their legality. As of this writing, no decision has been announced.

In addition, Congress has “kicked the can down the road” regarding the government shutdown (the longest on record) avoided at the last minute in November. Congress comes together at the end of this month to approve a budget or risk another government shutdown.

Adding to their uncertainty is the Federal Reserve’s posture on interest rate reduction. As of this writing, the general consensus is a quarter of a percent in December, followed by further reductions in the first quarter of 2026.

Chairman Jerome Powell faces unprecedented division among certain members of the Reserve Board regarding future rate reductions, thus adding to uncertainty.

OPEC+ production increases continued into this month, with a pause in future increases weighing on the market’s response. As of this writing, WTI is at $58.29/barrel and Brent is at $62.21/barrel. OPEC has implied a supply surplus in 2026 if OPEC+ output remains at current levels.

Construction news

  Data center construction will continue to rise this year, although the flood of spending on data centers has slowed in recent months. However, the pipeline of potential new projects announced or in the early stages of planning signals that construction will remain strong as the year progresses.

Data center construction is concentrated in areas with inexpensive and adequate power. Atlanta, Northern Virginia, Dallas, Chicago and Phoenix are the largest metro areas for data center development.

The current construction market has evolved into two markets in one industry. Data center, LNG and industrial megaprojects drive national growth while office, retail and manufacturing are cooling. An overview of the commercial market illustrates the divide: traditional building work has slowed, or stalled, in many regions, while power-intensive data center infrastructure continues to expand, thus propping up national totals.

  A new risk assessment from global insurer QBE North America, supported by federal data and Associated Builders and Contractors’ (ABC) latest backlog and confidence readings, indicates a market that looks solid at the top but is fracturing beneath as labor shortages, grid constraints and policy uncertainty converge.

Nonresidential spending declined 1.5% year over year and is expected to decline by a further 0.5% in 2026, per ABC’s analysis.

Turner Construction indicated that more than half of new orders now come from digital infrastructure, energy infrastructure and defense, underscoring how a relatively small set of megaproject categories is sustaining much of the national volume.

Industries that have contracted include apparel, textiles, paper products, chemicals and transportation equipment.

Labor and cost

Workforce shortages continue to plague the operating environment. The Associated General Contractors’ 2025 “Construction Hiring & Business Outlook” survey indicated that about two-thirds of those responding expect the shortage to persist well into 2026.

ABC estimates that the industry will need an additional 500,000 workers this year due to the persistent shortage of skilled labor. More than one-fifth of U.S. construction workers are 55 years of age or older, thus accelerating attrition rates. Texas and Florida, in particular, are feeling the pressure to add workers due to age-related attrition.

Rising materials and equipment costs are adding to the strain on developers. Construction input cost per ABC’s update indicates construction input prices increased 3.5% from September. Contributing to the rise are the increased costs of electrical equipment, steel, copper and transportation.

Manufacturers and contractors working under fixed-price contracts signed prior to 2025 price increases are now facing tighter contingencies and more frequent negotiations with owners.

Pricing and the availability of butt-welding carbon steel fittings and forged steel flanges remain, as of this writing, stable. Prices are expected to rise and need to be closely monitored to prevent being caught off guard.

The amount of the increase has not, of this writing, been determined as the uncertainties regarding tariffs persist. Some manufacturers/suppliers have taken the initiative to make price adjustments, while others have taken a wait-and-see position.

U.S. Customs and Border Protection has seen a rise in transshipments, especially of Chinese-origin goods, to circumvent trade enforcement measures. Violations can lead to severe consequences, including fines, shipment seizures, business disruptions, loss of import privilege and reputation damage.

Project news

  Meta is investing more than $1 billion to build a 700,000-square-foot data center campus in Beaver Dam, Wisconsin. Meta has selected Mortenson as the general contractor. This will be one of the largest single private sector projects in Dodge County history.

In addition, Meta will invest $200 million in energy infrastructure upgrades to support the project’s large electrical load. 

The Wisconsin Economic Development Corp. estimates the project will generate 1,000 skilled trade jobs and 100 permanent positions.

  U.S. government officials selected two multibillion-dollar natural gas pipeline projects for fast-track permitting in the Trump administration’s boost of favored works: the Southern Natural Gas Co.’s $3.5 billion South System Expansion 4 and the Tennessee Gas Pipeline Co.’s $1.7 billion Mississippi Crossing.

The two pipeline projects total more than $5 billion. 

The $3.5 billion South System Expansion 4 project will add approximately 1.3 billion cubic feet of natural gas/day and make improvements along 291 miles of existing infrastructure between Clarke County, Mississippi, and Savannah, Georgia, with line pipe ranging in diameter from 30 to 42 inches. The project consists of two phases, with Phase 1 scheduled for completion in 2028 and Phase 2 in 2029.

The Mississippi Crossing is a new pipeline consisting of 42-inch and 36-inch-diameter pipe extending approximately 208 miles between Greenville, Mississippi, and Butler, Alabama, with a planned capacity of 2.1 billion cubic feet/day. Pending permits, construction should be completed in 2027 and operational in 2028. 

  Giant investment firm Blackstone is funding a $1.2 billion West Virginia natural gas-fired power plant near Clarksburg, West Virginia, the first of that type in the state, through its Blackstone Energy Transition Partners unit. 

The county commissioners have authorized a natural gas pipeline to supply the plant. Site development is underway, with operation of the 625 MW Wolf Summit Energy Plant scheduled for 2027.

  The U.S. natural gas-fired power sector is having to contend with both short-term and long-term bursts in energy demand. The recent onset of winter weather only underscores the need to keep power plants in the best possible condition.

Florida and Texas lead the nation in investments in planned maintenance projects scheduled for the first quarter of this year for gas-fired power plants.

PVF Roundtable networking

The PVF Roundtable (PVFRT), through its charitable foundation, passionately promotes the funding of trade schools and education programs at community colleges. These programs address the critical need to expand the skilled labor pool in the construction, fabrication and supply chain sectors of the PVF industry.

The primary funding for the PVFRT Charitable Foundation comes from the PVFRT annual golf tournament and the annual TroutBlast.

The Weldbend Corp., Ferguson Industrial and MRC Global are key sponsors of the events. 

MRC Global and DNOW announced the completion of their merger on November 6, 2025; MRC Global’s stock will no longer be traded.

MRC Global and DNOW will, in the near term, continue to serve their respective clients through their usual contact and support teams, who will remain the same as before the acquisition.

The PVFRT looks forward to the continued support of the combined company.

The next networking meeting of the PVF Roundtable and the extremely popular Cocktail and Commerce Tabletop Show will be held on February 10, 2026, opening at 4:30 p.m. Please bring your clients and associates for the opportunity to meet industry peers up close and personal.

The meeting will be held at the Bayou City Event Center in Houston, 281-501-6720. This venue will provide additional space and convenience for exchanging information and meeting new colleagues.

The PVF Roundtable continues to serve as a vital hub for industry networking, education and advocacy. Recent and upcoming events reflect the sector’s commitment to collaboration and innovation.

Networking meetings are now, more than ever, essential for you, your associates and clients, to share information, discuss pertinent issues, meet new contacts, develop new long-lasting friendships and to pursue new opportunities in the industry.