The surge in data center development is accelerating demand across labor, energy, and materials. Meanwhile, global instability is disrupting how those resources are supplied. What once felt like separate challenges are now compounding into a single, interconnected pressure on project delivery.

Here’s how it’s showing up:

Data Center Demand Driving Labor Shortage

The rapid expansion of data center projects is reshaping labor demand across the construction industry. What was once a localized staffing challenge is now a structural shortage in key skilled trades.

The surge in data center construction is placing sustained pressure on the skilled labor pool
Competition for electricians, mechanical trades and commissioning talent is intensifying across markets

This is turning labor into a defining constraint on project delivery timelines and execution. As a result, it is increasingly influencing timelines, cost certainty, and how work is sequenced across portfolios. In a market defined by sustained demand and limited capacity, labor availability is becoming a primary factor in determining what can realistically be built and when.

Several response strategies may be explored:

Bringing labor from outside regions or international markets to fill critical gaps
Slowing or sequencing projects to better align with the available workforce capacity
Increasing prefabrication to reduce on-site labor demand
Investing in automation and productivity enhancing construction methods, such as Agile Construction^®

More Workers Means More Risk on the Jobsite

As workforce demand increases, many projects are responding by adding more crews to maintain schedules. However, higher jobsite density introduces new layers of operational and safety complexity.

Meeting aggressive schedules often requires increasing workforce density on already complex jobsites
Adding more workers in tight spaces creates greater coordination challenges and elevates safety risk

Trade stacking becomes harder to manage as jobsite density increases. This adds strain on supervision, communication, and site logistics across the entire site. As a result, strong safety programs and oversight become progressively more important to maintain performance and reduce risk.

Energy Demand is Becoming a Limiting Factor

Data centers are now one of the largest drivers of new electricity demand in the construction pipeline. As a result, energy availability is increasingly shaping when and where projects can move forward.

Data centers are driving a sharp increase in electricity demand across regions
Power availability is becoming a key constraint in project planning in delivery

What’s changing?

The industry is being pushed towards re-electrification and shifting infrastructure priorities
Utilities are playing a larger role in determining project feasibility and timelines
Energy access is becoming a gating factor for development, not just a consideration

The Middle East Conflict is disrupting Material Flow and Pricing

Currently, the instability tied to the conflict in the Middle East is putting pressure on one of the world’s most critical shipping corridors: the Strait of Hormuz.

Disruptions to key shipping routes are impacting the movement of energy and raw materials
Fuel and transportation costs are becoming more volatile and difficult to predict

What does this mean for the construction industry?

Material pricing is harder to lock in and more apt to sudden shifts
Procurement planning must happen earlier, with added contingencies
Sourcing strategies need to diversify to reduce exposure to global disruptions

Supply Chains are no Longer Independent Systems

Labor availability, energy capacity and material access are now tightly interconnected. A disruption to one area can quickly cascade across multiple phases of a project.

As a result:

Project timelines are increasingly exposed to external shocks outside direct control
Planning must account for compounding risk, rather than isolated disruptions
Agility in execution is becoming a core advantage in delivery performance

Data Centers are Reshaping Local and Global Industries

The rise of data centers is not just a construction trend, but a structural shift in how economies and industries are organized. Their influence extends far beyond the jobsite, both locally and globally.

Local Influence:

Driving, infrastructure investment, and increased demand for utilities
Placing new pressure on power grids, land use and overall reginal planning

Global Influence:

Increasing demand across energy and construction related industries
Intensifying competition for labor and materials
Reinforcing the interconnected nature of the industrial digital economy

What is unfolding is a structural shift in how construction projects are delivered. Labor availability, energy capacity, material flows, and global instability are the constraints shaping every major project. Success will increasingly depend on how effectively these pressures are anticipated and managed in real time.

Publications

Re-electrification of the U.S.: Why Data Centers Are Driving the Surge

Data center expansion is accelerating electricity demand, turning power access into a key constraint while amplifying labor and supply chain pressures. These forces are no longer separate—they’re converging into a single challenge shaping project timelines and feasibility. Read more: Re-Electrification of the U.S.: Why Data Centers are Driving the Surge

The Data to Build Data Centers: Why Better Information Wins Projects

When labor shortages, energy limits, and supply chain volatility converge, project outcomes depend less on conditions and more on the quality of information driving decisions. Higher-fidelity connected data enables earlier risk detection and more reliable execution in complex environments. Read more: The Data that Builds Datacenters

Additional Articles – Want to Learn More?

Research

Work Breakdown Structure Research: What Makes a Good Plan? Using AI to Predict Project Outcomes Before They Start.

In construction, success is usually measured after a project is complete. But what if you could predict outcomes before work even begins? The takeaway from MCA’s research is simple: better planning = better outcomes. High-performing projects start with plans that are:

Clearly defined
Structured around the work (not just hours)
Measurable and actively managed

Tools like a Work Breakdown Structure (WBS) help define scope, align teams, and create a reliable roadmap for execution. AI can also help improve project performance when used in the right circumstances. MCA, Inc.’s research shows that applying AI to project data allows teams to:

· Predict outcomes early in the project

· Identify risks before they escalate

· Make more informed, proactive decisions.

The bottom line is: contractors who adopt structured planning and data-driven tools will be better positioned to improve performance, reduce risk, and stay competitive.

Job Porosity Research: Identifying the Risk Factors for Project Financial Outcomes

Most construction projects start with a solid plan and a healthy margin, but many still end up underperforming financially. MCA, Inc.’s research points to a key concept: job porosity, or the hidden (and common) risk factors that allow profit to slowly slip out of a project.

The more “porous” a project is, the more likely it is to experience profit fade. Common causes of project fade include:

Gaps between estimate and reality – assumptions don’t match field conditions
Lack of alignment – estimating, operations, and accounting aren’t working from the same plan
Poor data quality – inconsistent or unreliable reporting
Unrecognized variability – treating every project as “unique” instead of understanding patterns

Project outcomes aren’t random; they’re driven by identifiable factors. Job porosity gives contractors a way to spot risks earlier and respond with better decisions and risk prevention, whether that’s adjusting a bid or managing a project more proactively.

Development

Integration of AI Models in DCI Construction®

DCI Construction^®, (Digitalization Commonization Interconnection^®) the flagship construction ERP developed in house by MCA, Inc. is making strides towards the integration of Artificial Intelligence to improve reliability and efficiency for the project manager and field. The power of DCI Construction^® in interconnecting data across all areas of the project, combined with AI models built from 30 years of research, will provide one of the most powerful all-in-one enterprise level management software’s available.

Proof of Concept AI Development in JPAC®

By leveraging post-2021 project data in JPAC^® (Job Productivity Assurance and Control), MCA, Inc. developed a machine learning proof of concept to predict end-of-job productivity earlier and with greater accuracy while maintaining JPAC^®’s current reliability. Using over 11,000 data points across 470 projects, the AI model improved productivity modeling accuracy by more than 68%, demonstrating that data-backed AI can move beyond educated guesswork and expand its use in Agile Construction®, enabling teams to:

Recognize and predict patterns based on labor code performance
Predict financial and productivity performance outcomes early
Provide actionable insights for project teams based on the statistical patterns

Project Likelihood of Total Profit Gain with AI Powered Bid Filtering

Built upon the research conducted by MCA, Inc., DCI Construction^® will house an AI driven bid filter aiming to help project managers predict performance and help decide if they should bid a job. By utilizing historical data and inputs, DCI Construction^® will be able to predict the likelihood of winning the bid.

There are twelve sources that the AI model will use to make a bid prediction. Some of these include:

Project manager average months – Assessment of experience
Project location – Based on state
Overhead ratio – Burden & other cost divided by total cost
Profit – Estimated at time of bid and as a percentage of the contract
Timeframe – Estimated time of the project

Friday, March 25, 2022

March 2022 State of the Industry Report (Vol. X, Issue 1)

Industry at a glance:

Quantum Computing will be potentially the next disruption for the contracting industry.
Simply put, the industry is as strong as it gets despite the following:
Persistent Supply Chain issues
Which are caused by:
                                           - Naturally, the supply chain is not able to handle full production                                           after COVID 19. We predicted will hit by the end of 2021
                                           - Hoarding of the material by some distributors to take advantage of                                                   the price increases
                                           - Increased material pricing
                                           - Delayed switchgear and fixture deliveries
What to do about it:
                                           - Our prediction is that these issues will persist for another 12-18                                                       months - be prepared!
                                           - Order ahead
                                           - In case of Design Build order as soon as you can and if the                                                  design changes you can protect your profits by reordering
                                           - Build some backlog of material
                                           - Use prefabrication as much as you can
                                           - Count on some of your supplier’s services NOT TO BE available                                             for a while, since they can sell to anyone and they may prefer                                                     not to service if they can avoid it
Inflation is here to stay for a bit ~ at least 12-18 months
It is caused by:
                                           - The money that the government has poured into the economy in                                                  the last 24 months
                                           - People's buying power has increased without any economic                                                         reasons
                                           - Wage increases
                                           - Supply chain issues
                                           - Lack of willingness for the workforce to go back to work
What to do about it:
                                           - Don’t pay down or pay off your fixed (lower) rate loans
                                           - Convert some of your Lines of Credit to fixed-rate loans
                                           - Don’t borrow if you can help it
                                           - Increase your sales revenue per electrician
                                           - Use more prefabrication
                                           - Get out of your Lines of Credit
War in Ukraine will linger
It is caused by:
                                           - A crazy man
                                           - Lack of historical barriers for the crazy man (no one has tried to                                                     stop him)
                                           - The crazy man’s need for Oil money
What to do about it:
                                           - Donate if you can
                                           - Support our troops if they get deployed
                                           - If you're so inclined, Pray
Jobs and getting larger and the backlogs are growing
It is caused by:
                                           - GC consolidation
                                           - Big capital is swimming in money including the banks
                                           - Population increase
                                           - Data centers feeders protects and projects to support their                                                           infrastructure
                                           - Online shopping and the need for larger storage/distribution                                                            centers
What to do about it:
                                           - Train and retrain your project managers
                                           - Use prefabrication
                                           - Use Agile Construction^®                                           - Learn from others
                                           - Close your jobs as quickly as possible
                                           - Work with data
                                           - Come to MCA’s Symposiums (One is coming up see below)
The labor shortage is fake news (Read CFMA Article on this topic)
It's caused by:
                                           - Lack of labor management
                                           - Lack of prefab usage
                                           - Lack of using a Work Breakdown Structure (WBS)
                                           - The required work to be performed in unknown
                                           - Construction is not joining the Industrialization plan
What to do about it:
                                           - Reverse the causes
                                           - Apply Agile Construction^®                                           - Train your people to see the work and make a plan
                                           - Manage scope creep on the job
The Unions are losing more ground. You can all guess why this is happening. Just reread the above items

*Please place your comments in the comment section at the end of the SOTI below.

MCA Symposium 2022 Highlights:

Join us on June 16th, 2022, for our 27th Annual Symposium.

Agile Construction® as a Path to Industrialization. Agile Construction®: Data Driven Project Closure

Please join us for this Symposium, where you will gain:

A plan for a closeout that can save or recover profits.
An understanding on how to apply the data from your projects and apply the findings to future estimates.
An understanding of the data driven job close-out process and how it leads to long term benefits in your processes on future jobs.
An ability to identify risks and develop processes to limit or eliminate them.

At a glance the covered topics are:

Data Driven Project Closure

Planning for Closure can help you shut off the (money) faucet
Recognizing that the end of the project is truly the beginning
Using Closure to build the corporate memory

The Pitfalls of Project Closure

Perception of lower risks
Shifting focus to other projects
Reassigned Personnel
Lack of Process

Considerations for Project Closure

What project closure entails
Planning for Closure

When to Closeout
Capturing Lessons Learned
Personnel reassignment and Customer Service

To learn more about our 2022 Symposium and more upcoming events please visit our website frequently.

Progressive Contactors:

Staff Electric

With five years into the journey to transformation, Staff Electric is now preparing to truly perform using their lead indicators to manage their projects with data. MCA, Inc. and Staff Electric have worked collaboratively on the process of DCI™ to take the company’s processes and automate them in a way that allows their systems to talk to each other but, more importantly, that the data and structure behind those systems are based on what has brought them success. It’s not just “building software;” it’s translating the tacit know-how in the company into digitalized and interconnected systems.

The Future

Staff Electric’s theme for 2022 is “building a foundation for the future,” with plans to revisit some basics learned in 2016 at the start of the transformation. Now that the team has ingrained and hand-built the processes and tools, each process in the company will have a maintenance plan, and the folks that were just learning to work with the Agile Construction® processes and tools five years ago will be able to teach it, getting the maximum benefit for themselves, their jobs, and the company now that they own it.

Allfab Electric

Allfab is now providing plumbing services as well. The objective of Allfab is threefold:

Companies can order prefabrication directly from Allfab
Allfab can layout and build prefabrication facilities for contractors
Allfab can build prefabrication assemblies for suppliers

Reach out to Kevin at (531 867-3823), or visit their website at (www.allfabelectric.com) to find out more.

Lemberg Electric

Lemberg Electric has embarked on larger projects due to their increased capabilities in project management by using Agile Construction®, leading to larger, faster, and overall, more projects.

A full-scale project management training and project scheduling training for all their project managers has enabled LEC to become a larger player in the market. Please reach out to us here if you'd like to have these courses for your company.

Electric Company of Omaha

ECO is successfully transitioning to a selfsustained Agile Construction^® Contractor. Their steering committee is now run by experienced field and office managers. The are embarking on data-based management by analyzing their jobs through Estimating Analysis Enhancement (EAE^®). They are also applying the well-known and successful model of Single Point of Review™ & Single Point of Launch™ by using the Audit process to review startups on the jobs

Aldridge

As mentioned in the opening, ALD is embarking on larger and larger jobs with their confidence in the Agile Construction® model for expansion. Their involvement in

DCI™ Mapping
VP training immersion
Large Job Process

Will enable them to expand across the country very successfully.

Work Environment Management LLC:

Work Environment Management, LLC, or WEM^® Software, is now registered in Wisconsin as well, maintaining its WBENC status nationwide. Take advantage of WEM^® Software, scheduling, and planning services to fulfill your Minority Business requirements on the job.

WBENC is the nation’s largest third-party certifier of businesses owned, controlled, and operated by women in the United States.

JPAC^® & SIS^®

JPAC^® and SIS^® have some major enhancements planned for 2022!
This year, updates will focus on further improving Automation and Interconnection.

New Features to look forward to in 2022:

SIS^® Interconnects with JPAC^® To Pull:

Job-To-Date Accounting Hours
Ability to select a project WBS task while scheduling

SIS^® Management Report

Enhanced visibility into the week’s obstacles on the job site
Ability to coordinate on and resolve obstacles

JPAC^® Composite Rate Bulk Import
WBS Additives Bulk Import
Allow multiple JPAC^® projects to “roll-up” charts to a parent project.
SIS^® Timesheets Integration
JPAC^® User interface updates to improve ease of use and data entry.

Click here or contact our Sales Department to request your demo today!

DCI™ - Digitalization, Commonization, and Interconnection

DCI™ is the next-generation Agile Construction^® software application for the construction industry providing a digital solution to translate each of your team members’ tacit knowledge into explicit knowledge. Through consistency of processes, procedures, and tools and by interconnecting all involved functions and data sources, such as Estimating, Procurement, Project Scheduling, Work Breakdown Structure, JPAC^®, Accounting, Financial Reporting you gain a seamless data-driven tool for work environment management (WEM^®), data analytics, and strategic decision-making.

Last year, in August 2021, MCA Inc. released the “Pipeline & Backlog” module as the first component of DCI™. This component was further improved in November to include features to manage multiple proposals per project, bid versioning, and bid revisions. Ask us for a demo now!

Exciting releases to look forward to in 2022 include:

Change Management – track all contract changes (pre & post contract). Track all financial and scope changes to your projects, along with the reason for the change and who requested the change for a clear picture of what was negotiated on bid day vs. the official signed contract amount vs. change orders requested after the project begins. This tracking allows ultimate collaboration between the contractor and customer to maximize profits and prevent cost overruns.
Customer Management – easily access your customers and contact information for each project.
Document Management – store all documents for each phase of the project organized in the appropriate place. Never worry about the project proceeding without the required documentation on file or the versions being out-of-date.
Interconnection Features between JPAC^® and SIS^®– DCI™ will further enhance the experience of MCA JPAC^® and SIS^® customers for a more seamless login & navigational experience.

Click here or contact our Sales Department to request your DCI™ demo today!

Publications:

We are always excited to share our latest articles and contributions with the construction industry! See our latest publications below:

CFMA Building Profits (November/December): How Industrialized are you: Using the framework contained in this article to evaluate where your company stands will help to see where it lies on the trajectory of industrialization. It will also help organizations prepare as more work will be done off-site, and the role of suppliers and distributors will shift from product providers to logistics and service providers.
EC&M Jobsite Intelligence (December): A walk in the Job-Site Wilderness: New ways of performing work can undoubtedly come with challenges and growing pains. Rather than sweeping issues under the rug — or going back to traditional familiar methods of installation — it is critical to capture feedback when issues or difficulties occur so that the organization can learn and improve their operations in the shop on the next job.
EC&M (January): Rise of the Machines: Dr. Heather Moore had the opportunity to sit down with author Tim Kridel recently to discuss the importance of jobsite intelligence and the use of robotics on the construction job site. See what Dr. Heather has to say about using robotics on the job site to gain intelligence to the work environment.
CFMA Building Profits (January/February): Keeping an Eye on the Money: Rather than looking in the rearview mirror to identify what has happened in the past, this article introduces a means of increasing company-wide visibility to improve the future by allowing more time to detect anomalies, recognizing explicit processes and procedures, and understanding where time is spent and if it’s transferring value to the customer before moving to IT solutions.
CFMA Building Profits (March/April): What Workforce Shortage? The Problem Is in the Planning: Prior to, and exaggerated by, COVID-19, the problem among the construction workforce has been described as a “shortage.” However, the construction industry has not changed how its skilled tradespeople perform the work that does not explicitly require their skill, knowledge, or experience, resulting in a stagnant $0.38 of labor cost for every $1 spent on construction while industrialized industries (farming, automotive, manufacturing, banking, etc.) experience $0.09 to $0.15 on the $1.

Visit our MCA publication section to view and read all of our latest articles and publications (and more)!

Other publications you might also be interested in:

Agile Construction^® Books: Click here!

Industrialization of Construction^® Books Click here!

Get Involved:

We are excited to announce we have been focusing on expanding on our partnerships with associations like Independent Electrical Contractors, Great Service Forums, and National Center for Employee Ownership. We will be participating in various speaking engagements, webinars, and classes throughout the year! To stay up to date on the latest upcoming events, speaking engagements, and webinars we’ll be participating in please visit our website.

We are also excited to announce that we are bringing our class offerings back to in-person in 2022, to stay up to date on upcoming classes being offered near you, please visit our website. To see our full list of course offerings visit our Course Catalog! Is there a class you'd like us to offer? Please let us know at (810) 232-9797

Wednesday, May 13, 2026