The report below gives a good overview of the Spring 2026 M&A activity in the Metal Fabrication Industry Sector. The global Metal Fabrication Market is expected to reach $23.4 billion by 2026, with U.S. production projected to grow by 5.5%. At the start of Q1 2026, the sector was in its strongest position since the post-pandemic recovery, supported by data that backs the optimism. Production grew consistently over all three months, as shown in ISM Manufacturing PMI reports. The index moved from 47.9% in December 2025 to 52.6% in January, held at 52.4% in February, and edged up to 52.7% in March, marking the first sustained expansion since early 2024. A key driver has been the strong demand for structural steel linked to AI infrastructure. U.S. data center construction starts totaled $53.7 billion through November 2025, reflecting a 138.6% increase year-over-year. Looking ahead, a further $69.2 billion across 65 projects is expected to commence in the first half of 2026. A single hyperscale facility can require up to 20,000 tons of steel. Power infrastructure spending is projected to hit $27.8 billion in 2026, nearly doubling from 2025. Meanwhile, input costs showed varied trends. Structural steel was priced at $2,343.93 per ton in January, reflecting a decline from the preceding months as well as a year-over-year decrease, indicating softer pricing entering the start of 2026. However, prices increased through the quarter as Nucor raised hot-rolled coil prices to $1,040 per ton by March. Section 232 tariffs remained at 50%, which supported domestic pricing. The ISM Prices Index jumped to 78.3% in March. Customer inventories were "too low," indicating continued demand for restocking.
Posted by Jim Zipursky.