As of this writing, the prelude to the month of March is continued uncertainty concerning the status of President Donald Trump’s tariffs, predicated on the U.S. Supreme Court determination of the legality, the opposition party’s stance on a government shutdown deadline of February 13, the potential escalation of the Iranian crisis and persistent high interest rates.
The Federal Reserve Board voted not to reduce the current interest rate due to uncertainty regarding the direction of the inflation rate and the unemployment landscape.
Treasury Secretary Scott Bessent stated in an interview that the inflation rate had fallen to 2.1% and that the stock market, as of the time of the interview, was at an all-time high. Yet, Fed Chairman Jerome Powell has held the interest rate at the current level.
Firms hoping for additional rate cuts have been disappointed by the decision and look forward to Powell’s successor at the end of his term in May.
WTI crude traded, as of this writing, at $63.55/barrel and Brent rose to $68.05/barrel. Both benchmarks have held their gains, supported by U.S.-Iran diplomatic uncertainty.
Refinery use dipped to 90.5% as the maintenance season began. In addition, lingering production cuts from the January/February arctic vortex resulted in roughly 2 million barrels per day of lost production.
OPEC+ agreed to extend its pause on production hikes through March at its Feb. 7 meeting. The brief meeting reaffirmed its position to curb output but made no mention of what OPEC+ could decide beyond March.
Jorge Leon, head of geopolitical analysis at Rystad, stated: “With rising uncertainty around Iran and U.S. tensions, the group is keeping all options open firmly on the table. OPEC’s own numbers point to a lower call on OPEC+ crude in the second quarter, which could limit the scope for production increases.”
Construction news
• Oglethorpe Power has selected Kiewit subsidiary, The Industrial Co., as its engineering, procurement and construction (EPC) contractor for a new 1.4 GW combined-cycle natural gas power plant in Monroe County, Georgia, to meet increasing demand from the cooperative’s 38 members.
Total investment is estimated to be between $2 billion and $3 billion, with the EPC contract value remaining undisclosed.
Mobilization is expected to begin this spring with commercial operation targeted for 2029.
The facility will be built on cooperative-owned property near Forsyth, adjacent to an existing gas-fired unit. The site was chosen for its existing transmission access, water resources and available acreage.
The plant will use GE Vernova 711A.03 advanced-class gas turbines that can operate using blended hydrogen-natural gas as fuel as the technology matures.
• Siemens Energy is investing $1 billion in U.S. manufacturing as demand rises for grid high-voltage switchgear and gas turbines to meet the growing electricity demand from data centers and industrial electrification.
The investment will create more than 1,500 jobs across multiple states, with Mississippi employing 300 workers to build a new high-voltage switchgear factory.
In North Carolina, Siemens Energy plans to increase manufacturing and service capacity for large power transformers and resume gas turbine manufacturing in Charlotte. Additional gas turbine component production is planned in Winston-Salem.
The company expects to add 500 jobs across these locations.
Additional gas turbine investments include expanding production of copper and insulation of electrical components for generators in Fort Payne, Alabama, adding approximately 120 jobs.
• The United States leads in total global investment value in data center construction, per Industrial Info Resources. Shane Mullins, vice president of energy market solutions, said that the digital infrastructure build-out is set to continue for the foreseeable future.
Across the U.S. market, Google and Microsoft are investing at a steady pace. Google leads the way with about $167 billion in spending in the pipeline. The largest part is committed to Missouri, with about $104 billion.
This massive investment commitment is creating a significant increase in electricity demand. Per Mullins, “U.S. data centers could triple and consume up to 12% of the country’s total electricity by 2028.”
On-site power generation is an option for developers. There are around 10 GW of in-house facilities and 34 GW from third-party contractors. Developers look to construction services to meet the need. Turner Construction is leading the field with 48 projects and a combined total investment value (TIV) of $61 billion, followed closely by DPR Construction with $58 billion in TIV across 39 projects.
Amazon has increased its capital expenditures (capex) for 2026 by 50% to $200 billion, with most of the expenditures attributed to data centers. AWS (Amazon Web Services) will be the primary focus of capex expenditures due to very high demand, according to Chief Executive Officer Andy Jessy.
Labor and material costs
The U.S. engineering and construction industry entered 2026 facing an acute labor crisis that threatens project delivery, cost efficiency and long-term growth unless new workforce models are adopted.
According to Deloitte’s 2026 Engineering and Construction Outlook, the sector will need 499,000 new workers in 2026. Demographic trends are squeezing labor supply: 41% of the construction workforce is expected to retire by 2031, while only 10% of the current workforce is under 25.
Wage pressures and rising costs reflect the strain on the labor market: construction wages grew 4.2% year-over-year by August 2025, driven by competition for scarce workers.
Should the labor gap persist, Deloitte warns the industry could lose nearly $124 billion in construction output due to unfilled positions.
The PVF Roundtable recognizes the need for developing a young, skilled labor force and is actively funding PVF-oriented trade school scholarships through its PVFRT Charitable Foundation. It has awarded more than $2 million and is growing to help meet the need for a young, skilled PVF workforce.
Pricing and the availability of carbon steel butt-welding pipe fittings and forged steel flanges remain stable, as of this writing. Shortages are being reported due to demand from the data center construction sector and increased maintenance in the energy sector.
Electricity and natural gas prices have increased substantially, combined with labor and tariff-related cost escalation.
Prices will increase, so they need to be closely monitored with your manufacturer or supplier to avoid undue risk in bid preparation.
Networking at the PVF Roundtable
The PVF Roundtable “Cocktail and Commerce” event held Feb. 10, 2026, had record-breaking attendance of more than 500. The event continues to draw industry associates to interact with manufacturers and suppliers to share product and market information.
THE PVF Roundtable’s annual golf tournament will be held May 11, 2026. Venue and details will be posted on the website, www.pvf.org.
The Weldbend Corp., Ferguson Industrial and MRC Global are key sponsors of the event. The primary funding for the PVFRT Charitable Foundation comes from the golf tournament and the annual TroutBlast.
MRC Global and DNOW have completed their merger. They will, in the near term, continue to serve their respective clients through their usual contact and support teams, which will remain the same as before the acquisition.
Dawn Witt, corporate accounts director at MRC Global, has joined the PVF Roundtable’s board of directors, effective February 2026. Welcome aboard!
The PVFRT looks forward to the continued support of the combined company.
The next networking meeting will be held May 12, opening at 4:30 p.m. Please bring your clients and associates to meet industry peers up close and personal.
The meeting will be held at Houston’s Bayou City Event Center. 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 discuss pertinent issues, share information, meet new contacts, develop new long-lasting friendships and pursue new opportunities in the industry.
