Framework for Growth: Strategic M&A Trends in North American Structural Steel Fabrication & Erection

The North American structural steel fabrication and erection industry is experiencing a transformative period, driven by a confluence of powerful growth catalysts. The market size for fabricated structural metal manufacturing is projected to grow from approximately $65.5 billion to around $74.0 billion by 2031. A significant shift in the revenue mix is anticipated by 2025, with infrastructure and industrial building construction expected to account for about $38 billion, while non-residential and commercial construction will contribute around $27 billion. This shift towards infrastructure and industrial construction offers better long-term visibility and stability, making these segments particularly attractive for mergers and acquisitions (M&A).

Several key market tailwinds are fueling this growth. Grid modernization and transmission expansion are at the forefront, with U.S. electric companies planning to invest $1.4 trillion between 2026 and 2030, up from a previous projection of $1.1 trillion for 2025-2029. Annual utility capital expenditure (capex) was a record $204.1 billion in 2025 and is expected to increase by 17% to $238.8 billion in 2026. This massive investment directly translates into a surge in demand for lattice transmission towers, tubular steel poles, substation structures, and fabricated support steel, with structural steel content embedded in almost every incremental grid dollar. Additionally, the North American data-center super-cycle, with $92.1 billion invested in the construction of 140 new data centers between October 2025 and March 2026, has reset trailing-12-month construction metrics. Data-center projects consume large volumes of wide-flange, joist, deck, and hollow structural sections (HSS) material, often with accelerated schedules that favor scaled fabricators with advanced digital detailing capabilities.

Federal infrastructure investment, guided by the Infrastructure Investment and Jobs Act (IIJA), continues to fund critical projects such as bridges, highways, transit, and grid work, with stringent Buy America domestic-content requirements. State and municipal capital plans further reinforce this trend, providing multi-year, visibility-rich backlogs for fabricators serving these end markets. The renewable power generation sector, which is inherently steel-intensive, also presents substantial opportunities. Wind towers, solar-tracker torque tubes and posts, and substation collection structures require significant amounts of fabricated structural steel. As utilities strive to meet load growth and renewable interconnection targets, the demand for grid expansion is compounding, benefiting fabricators positioned to serve utility-scale renewables developers and engineering, procurement, and construction (EPC) contractors. Lastly, the surge in U.S. manufacturing construction, driven by the CHIPS Act, Inflation Reduction Act (IRA), and elevated tariff policies, is reshaping the industry. Semiconductor, electric vehicle (EV), battery, and specialty industrial megaplants are large consumers of fabricated structural steel, and the tariff-driven onshoring investment cycle is proving to be durable.

To capitalize on these robust opportunities, investors and industry participants may consider evaluating their strategic positioning and assessing M&A as a potential path to consolidate, scale operations, and strengthen exposure to high-growth end markets. The highly fragmented nature of the industry, with thousands of privately held fabricators and erectors, presents a meaningful opportunity for consolidation. Whether focused on infrastructure, AI-driven data centers, renewable power, or manufacturing reshoring, aligning with these growth trends may support long-term stability and enhanced market presence. For a deeper dive into these trends and actionable insights, explore our comprehensive analysis in “Framework for Growth: Strategic M&A Trends in North American Structural Steel Fabrication & Erection.”

Footnotes:
Market Size: KPMG analysis based on IBISWorld industry data.
Revenue Mix: KPMG analysis based on IBISWorld industry data.
Fragmentation: NAICS 332312 industry registrations.