US non-residential construction spending rose 6% year-to-date through May 2026, providing sustained demand for hot rolled coil and other flat steel products. The IIJA transportation program disbursed $12.8 billion in Q1 2026, up 18% year-over-year, with bridge replacement and highway widening projects accounting for the bulk of steel-intensive spending.
CHIPS Act-funded semiconductor fabrication plants continue to drive significant flat steel demand. The five major fab projects under construction in Arizona, Texas, Ohio, and New York are consuming an estimated 850,000 short tons of steel annually, primarily hot rolled and galvanized sheet for structural framing and clean-room enclosures.
IRA-related energy infrastructure — solar mounting structures, wind turbine towers, battery storage enclosures, and grid substation components — consumed an estimated 3.2 million st of steel in 2025, with EIA projecting growth to 3.6 million st in 2026. Solar mounting alone accounts for approximately 35% of this demand.
Structural steel fabrication shops are running at 92% capacity utilization nationally, according to the American Institute of Steel Construction. Lead times for fabricated steel have extended to 10-14 weeks from 6-8 weeks a year ago. Some fabricators in the Southeast and Texas are selectively quoting only Q1 2027 delivery for new orders.
The manufacturing construction boom has a multi-year tail. Dodge Construction Network's project pipeline shows $285 billion in planned non-residential projects in the design or pre-bid phase as of May 2026, suggesting steel demand visibility extends through at least 2028 for major projects.
Industrial construction buyers should extend order lead times to 8-10 weeks minimum. Fabrication capacity constraints mean premiums for expedited delivery. For ERP buyers, request pricing only from mills with confirmed HRC-coil availability, not on-speculation quotes that may be retraded.