This Week in Trades, May 25, 2026

This Week in Trades, May 25

Contractor Backlog Hits 8.8 Months as Data Centers Drive Demand

The Associated Builders and Contractors Construction Backlog Indicator climbed to 8.8 months in April, up 0.2 months from March and the strongest reading in over a year. The Construction Confidence Index held above 50 across all components, signaling continued expansion.

The story behind the number: data centers. Contractors with more than $100 million in annual revenue show 42% have active data center contracts, compared to just 7% among smaller firms. Those data center contractors carry 12.2 months of backlog versus 8.3 months for everyone else.

For electricians, that gap is the job market. Data center work is power-dense, thousands of circuits, high-voltage distribution, redundant UPS systems, generator tie-ins. The contractors holding that work are staffing up. If you hold a journeyman card or are sitting for a license exam, this is the sector to watch.

ABC members report sustained demand through at least Q3. Backlog at these levels means steady hours and, in competitive markets, premium wages for licensed electricians.

Source: Associated Builders and Contractors

Materials Prices Up 6.2% Since January, Tariffs Driving Iron and Steel Higher

Construction input prices rose 1.7% in April, bringing the total increase to 6.2% since January, according to ABC's analysis of Bureau of Labor Statistics Producer Price Index data. Year over year, overall construction materials are up 7.0%. Nonresidential materials, the category covering commercial and industrial work, climbed 7.4%.

The steepest increases came from crude petroleum and iron and steel products, both driven by tariff pressure on imported materials. Iron and steel affect conduit, electrical enclosures, panel boxes, and structural supports, every commercial electrical job touches these costs.

What this means in the field: project bids submitted six months ago are getting squeezed. Material allowances built into fixed-price contracts are running short. Some contractors are passing costs to owners via change orders; others are absorbing the hit.

For licensed electricians, rising material costs tend to push contractors toward more efficient labor, experienced journeymen who get the work done right the first time and don't generate costly rework. Your license is leverage when material margins are thin. Use it.

Source: Associated Builders and Contractors

Federal Emergency Order Curtails Data Center Power as Grid Strain Peaks

The Department of Energy issued an emergency order on May 18 directing PJM Interconnection, the grid operator covering 13 states from New Jersey to Illinois, to curtail power to data centers with backup generation during peak demand periods. PJM had projected reserves dropping below 5,800 MW with more than 40 gigawatts of generation offline for planned maintenance, against expected peak loads exceeding 134,000 MW.

The emergency authority under Section 202(c) of the Federal Power Act lets DOE act when grid reliability is at risk. Data centers that can run on diesel or natural gas backup generators were directed to island from the grid and reduce their draw, a last resort before rolling blackouts.

The episode shows the tension at the center of the current construction boom: electricians are building the data centers that are straining the grid that requires more generation and transmission infrastructure that electricians will also build. The demand cycle runs in your direction.

Grid reinforcement, substation upgrades, and new generation tie-ins all require licensed electricians. States along the PJM footprint, Pennsylvania, Ohio, Virginia, Maryland, Illinois, are where the work is concentrated. Check license requirements for those states at /compare-states.

Source: Utility Dive

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