US Steel Forges Path for 2026 Amid Electrification & Labor Crisis

CHICAGO, IL – December 09, 2025 – The American industrial landscape is bracing for a transformative 2026 as a trio of powerful forces—a resurgence in domestic manufacturing, the unprecedented demands of nationwide electrification, and a critical shortage of skilled labor—converge to reshape the nation's infrastructure. The Steel Tube Institute (STI), a key industry organization, has identified these interconnected trends as the defining priorities for the coming year, signaling a pivotal moment for the construction and electrical sectors.

"We're entering a pivotal moment for steel conduit and the industries that rely on it," said Dale Crawford, Executive Director of the Steel Tube Institute, in a recent announcement. "From the resurgence of U.S. manufacturing to the rapid expansion of energy-intensive facilities, the nation's electrical and construction sectors are evolving faster than ever."

This evolution is not just a forecast; it's a reality being forged by aggressive trade policies, massive federal investment, and the relentless pace of technological advancement, creating both immense opportunity and significant challenges.

A Resurgence Tempered by Trade Winds

The call for strengthening domestic manufacturing is being met with tangible, albeit complex, results. The U.S. steel sector is experiencing a period of renewed growth, with the American Iron and Steel Institute (AISI) reporting a 3.4% increase in year-to-date raw steel production through late 2025 compared to the prior year. This momentum is bolstered by a clear policy shift favoring American-made materials.

Heightened trade enforcement, including the continuation of Section 232 tariffs and a proposed tripling of tariffs on Chinese steel and aluminum, has fundamentally altered the procurement landscape. A June 2025 decision to double Section 232 tariffs from 25% to 50% for most countries sent a strong signal, contributing to a dramatic 27.7% drop in steel imports in August 2025 compared to the previous year. This protectionist stance is pushing engineers, developers, and contractors to prioritize materials with transparent sourcing and verifiable quality, a domain where domestic steel producers have a distinct advantage.

However, this manufacturing renaissance is not without its own pressures. While domestic steel mills benefit, downstream industries that rely on steel as a raw material face higher input costs and price volatility. This dynamic underscores the industry's delicate balance between fostering self-reliance and maintaining competitive costs across the entire value chain.

Electrifying America: A New Era of Power Demand

Perhaps the most significant driver of change is the explosive growth in electricity demand. A new generation of power-hungry facilities is multiplying across the country, fueled by the digital and green revolutions. The build-out of massive data centers to support cloud computing and artificial intelligence, the expansion of electric vehicle (EV) charging networks, and the installation of renewable energy projects are straining the nation's grid.

This is not a future problem; it is a present-day reality. This surge is heavily underwritten by federal legislation like the CHIPS and Science Act, which is spurring the construction of energy-intensive semiconductor fabs, and the Inflation Reduction Act (IRA), which provides massive tax credits for clean energy projects. These initiatives come with strong incentives and, in many cases, mandates for using domestically produced materials.

This electrification boom translates directly into an urgent need for more robust, resilient, and safe electrical infrastructure. The focus is shifting to the components that protect these critical systems, with steel conduit being highlighted for its durability and ability to shield high-capacity wiring. For power-dense facilities like data centers and advanced manufacturing plants, where system failure is not an option, the physical protection and grounding capabilities of steel are seen as indispensable for ensuring long-term reliability and safety.

The Critical Shortage of Skilled Hands

The greatest threat to realizing this electrified, domestically manufactured future may not be a lack of materials or investment, but a lack of people. A severe nationwide shortage of electricians and other skilled trades professionals looms over the industry, creating a critical bottleneck. The U.S. Bureau of Labor Statistics has projected steady growth in the demand for electricians, but the pipeline of new talent is failing to keep pace with an aging workforce heading toward retirement.

This workforce gap presents a stark paradox: billions of dollars are being invested in ambitious infrastructure projects, but the skilled labor required to build them is in short supply. The shortage risks project delays, increased costs, and compromises in installation quality.

In response, industry stakeholders are ramping up efforts to attract and train the next generation. The Steel Tube Institute is expanding its educational resources, including a recently launched conduit bending app designed to improve accuracy and safety on the job site. These efforts are part of a larger movement involving organizations like the National Electrical Contractors Association (NECA) and the International Brotherhood of Electrical Workers (IBEW), which are working to expand apprenticeship programs and promote the value of a career in the skilled trades.

A Competitive Landscape for Critical Infrastructure

As demand for electrical systems soars, the choice of materials is under intense scrutiny. While steel conduit is lauded for its strength and protective qualities, it operates in a competitive market. Alternative materials like PVC (polyvinyl chloride) and fiberglass conduit present their own value propositions. PVC offers significant cost savings and is lighter and often easier to install, making it an attractive option for projects where budgets are tight and labor is scarce. Fiberglass provides superior corrosion resistance, making it ideal for harsh industrial or coastal environments.

Manufacturers of these alternative materials are actively marketing their products as solutions to the very challenges the industry faces, emphasizing ease of installation to offset labor shortages or lower costs to maximize project budgets. This competitive dynamic forces all material providers to innovate and clearly articulate their benefits.

For proponents of steel, the argument centers on unmatched physical protection, fire safety, and long-term resilience, especially for the high-stakes electrical systems powering America's new technological and energy infrastructure. The decisions made today about which materials to use, how to source them, and who will install them will have lasting consequences, shaping the safety and reliability of the nation’s critical systems for decades to come.