Prepared for the Keystone Contractors Association
Executive Summary
Power and energy produced Pennsylvania’s most consequential development this week. Three projects totaling approximately 1.7 GW were selected for PJM’s expedited interconnection process: two large battery-storage facilities and a natural-gas plant expansion. The selection materially improves their position, but it is an interconnection milestone—not confirmation of final permits, financing, construction awards or notices to proceed.
The active building market delivered several concrete opportunities. A 154,000-square-foot warehouse broke ground on former Mack Trucks property in Allentown. New PIDA financing supports a 49,920-square-foot build-to-suit industrial facility in Bethlehem and a 9,000-square-foot daycare buildout in Bedford County. Penn State and DCNR also have current trade and public-works packages advertised for November and December bids.
Risk remains concentrated in three areas:
- Data-center proposals continue to encounter land-use and legal uncertainty. Olyphant canceled a November 5 meeting concerning a proposed settlement for Project Triboro.
- Act 101 takes effect December 21, but Labor & Industry has not yet issued implementation guidance. NOTE: KCA has requested it and will keep industry informed.
- AGC’s new national data show data centers and power masking contraction across most other private construction categories, while material, equipment and labor pressures remain elevated.
Top Issues
1. Three Pennsylvania energy projects enter PJM’s expedited interconnection track
Status: Interconnection-track selection; permitting and preconstruction remain in progress.
On November 5, Pennsylvania announced that three projects were selected for PJM’s first Expedited Interconnection Track:
- French Creek Storage, Crawford County: Engie North America’s proposed 860 MW battery-storage facility.
- Sammis Project, Beaver County: Little Blue Solar’s proposed 500 MW battery-storage facility.
- Hunterstown Expansion, Adams County: A proposed upgrade to the existing Hunterstown natural-gas plant adding 367 MW.
Together, the projects represent approximately 1.7 GW of generation and storage capacity targeted for service by mid-2029. PJM intends to complete expedited interconnection review in approximately 12 months. DEP has held initial consultations with the developers, but the state says it is still helping the projects obtain required permits. Governor’s Office announcement Commonwealth of Pennsylvania
Why it matters: These are potentially large civil, electrical, substation, equipment-foundation and balance-of-plant opportunities. They also address the power constraint affecting Pennsylvania’s manufacturing and data-center pipeline.
Construction takeaway: Move the projects into active pursuit, but not committed backlog. Track DEP permits, PJM studies, equipment procurement, EPC or prime-contractor selection and site mobilization separately.
2. PIDA financing supports a Bethlehem build-to-suit facility and Bedford buildout
Status: Financing approved; projects have differing levels of construction content and readiness.
DCED approved more than $4.9 million in PIDA loans supporting $19.3 million in total investment across four counties. The clearest construction opportunities are:
- MillPress Imports, Bethlehem: A 49,920-square-foot build-to-suit facility on a 5.06-acre site at 1550 Spillman Drive. Two PIDA loans totaling approximately $2.2 million support the land, building and bottling-line equipment. Total project cost is approximately $12.8 million.
- Burkett’s Watch Me Grow, Bedford County: A 9,000-square-foot daycare buildout within the BCDA Business Center, including five classrooms, nine restrooms, a commercial kitchen, office, conference room, storage and outdoor recreation. Total project cost is approximately $1 million.
The other approvals largely support a warehouse acquisition by DelGrosso Foods and the acquisition of a Lancaster building for Stroopies and Lancaster Sweet Shoppe; DCED did not disclose defined construction packages for those transactions. DCED PIDA announcement dced.pa.gov
Why it matters: The financing package contains both genuine construction work and real-estate or equipment spending. The Bethlehem facility offers the largest identifiable vertical scope.
Construction takeaway: Prioritize MillPress and the Bedford buildout for owner, developer and design-team outreach. Do not treat the full $19.3 million investment figure as construction volume.
3. Construction begins on 154,000-square-foot Allentown warehouse
Status: Groundbreaking achieved; construction active.
Penntex Construction and Eden Wood Realty recently broke ground on an approximately 154,000-square-foot precast warehouse at Allentown Commerce Park, on former Mack Trucks property. The planned building includes 36-foot clear height, 34 loading docks and integrated fire-protection systems. Completion is targeted for spring 2027, and the building remains available for lease. Lehigh Valley Business report Lehigh Valley Business
Why it matters: This is verified construction activity rather than a site-selection or financing announcement. It also puts a long-discussed former industrial property back into productive use.
Construction takeaway: The prime is already identified, so remaining opportunity is primarily in subcontracting, supplier and tenant-improvement packages. The speculative leasing status also means future interior work will depend on tenant commitments.
4. Project Triboro remains blocked by legal and local-approval uncertainty
Status: Proposed; November 5 settlement meeting canceled. Not construction-ready.
Olyphant Borough had scheduled a November 5 special meeting to consider settling ERCOR’s lawsuit and approving a community-benefit agreement for the proposed Project Triboro data-center campus. The borough canceled the meeting after learning that an adjoining property owner planned to seek court intervention. Lackawanna County, PA
The proposed campus has been described as seven data-center buildings and a substation on approximately 470 acres. The canceled meeting means no settlement or local approval milestone was verified this week.
Why it matters: The episode demonstrates that a large site, developer investment and proposed community agreement do not eliminate entitlement and litigation risk.
Construction takeaway: Keep Triboro in the long-range pursuit file only. Do not reserve labor, equipment or bonding capacity until the lawsuit, local approval path, power arrangements and environmental permits are resolved.
5. Pittsburgh advances environmental review for Ross Loft office conversion
Status: Environmental review/federal funding release stage; construction procurement not verified.
The City of Pittsburgh intends to request HUD release of federal funds for Ross Loft Apartments at 100 Ross Street. The proposed project would convert a historic seven-story office building into 46 residential units, including 39 income-restricted units. Twenty-three units would receive project-based vouchers, and HUD Moving to Work funds are expected to support construction.
The city completed its public-comment period on November 4 and determined that the project would have no significant environmental impact. That determination advances the financing process but does not constitute a construction contract, permit or NTP. City of Pittsburgh notice Pittsburgh, PA
Why it matters: Office-to-housing conversion remains one of the more credible sources of work in downtown Pittsburgh’s weak office market.
Construction takeaway: Track the HUD release, full capital stack, building permit and delivery team. Existing-building conditions, accessibility, façade requirements and MEP replacement will be central cost risks.
6. Geisinger’s nearly $900 million Danville expansion reaches steel milestone
Status: Older context—October 29 topping-out, reported October 30; active construction.
Geisinger Medical Center completed the steel frame for its new 11-story patient tower in Danville. The nearly $900 million expansion and modernization project remains targeted for completion in 2029. The project includes new clinical space for medical-surgical care, critical care, emergency and trauma services and surgical care, while moving adult medical-surgical units toward all-private rooms. geisingeriaa.com
Why it matters: This is not a new bid announcement, but it confirms schedule progress on one of Pennsylvania’s largest active healthcare projects. Structural completion shifts emphasis toward enclosure, MEP, interior, medical-equipment and commissioning work.
Construction takeaway: Treat the tower as active backlog, not new pipeline. Firms should focus on remaining specialty packages, renovations to existing space and later commissioning and closeout needs.
7. Penn State and DCNR offer current, identifiable bid opportunities
Status: Advertised procurement; bid dates verified on owner websites.
Penn State currently lists several University Park renewal packages as out to bid:
- Roof systems renewal — November 12.
- Elevator systems renewal — November 17.
- Masonry systems renewal — December 3.
- Window systems renewal — December 10.
Penn State identifies the packages as university-held bids, while some other listed projects are held by construction managers and require separate access through those firms. Penn State trade packages OPP
DCNR’s active solicitations include Ryerson Station State Park dam removal and park/stream-corridor work opening November 12, plus Parker Dam State Park sewage-treatment-plant rehabilitation and Lackawanna State Park shower-house replacement packages opening December 3. DCNR current bid proposals fdcbids.dcnr.pa.gov
Why it matters: These are actionable procurements, unlike broad capital announcements. They provide opportunities across roofing, elevators, masonry, windows, treatment systems and park construction.
Construction takeaway: Confirm addenda, bonding, prequalification, separate-prime structure and bid-delivery requirements directly with the owner. CM-held university packages should not be assumed to follow Penn State’s direct bidding process.
8. AGC data show an increasingly two-speed construction market
Status: Current national spending release with Pennsylvania implications.
AGC’s November 2 analysis found total U.S. construction spending fell 1.9% from August to September and 2.7% year over year. Private nonresidential spending increased, but the growth was concentrated in two markets:
- Data-center construction: up 8.6% for the month and 90% year over year.
- Private electric-power construction: up 1.3% for the month and 14% year over year.
- All other private construction categories combined: down 0.2% for the month and 7.8% year over year.
Public construction was down 0.1% monthly but up 1% annually. Public educational spending was flat for the month and down 1.4% annually. AGC spending analysis Associated General Contractors of America
Why it matters: Strong data-center and power headlines can obscure weakening demand in traditional private building markets. Contractor exposure depends heavily on market mix.
Construction takeaway: Stress-test backlog outside power and mission-critical work. Confirm tenant, financing and owner-authorization status before committing preconstruction resources to speculative industrial or commercial projects.
9. AGC issues new warning on material, equipment and labor pressure
Status: Current AGC alert; underlying cost data are through September 2026.
AGC’s newly released Construction Inflation Alert reports:
- Nonresidential construction inputs up 11.9% year over year.
- Fabricated structural metal for nonindustrial buildings up 35%.
- Diesel up approximately 115%.
- Truck transportation up 19.3%.
- Some structural-steel capacity reserved through first-quarter 2027 or later.
- Continued long lead times for transformers, switchgear and generators.
AGC’s national workforce survey also found 88% of respondents with openings said craft and salaried positions were as difficult or harder to fill than a year earlier. Electricians, mechanics, HVAC technicians, superintendents and project managers were among the most difficult positions. These are national findings, not Pennsylvania-specific measurements. AGC Construction Inflation Alert agc.org
Why it matters: The greatest current threats to margin are not limited to commodity prices. Equipment lead times, freight, labor availability and incomplete designs can independently disrupt schedule and cost.
Construction takeaway: Use current supplier letters in owner discussions. Address price adjustment, stored materials, early procurement, substitutions and schedule relief before accepting fixed-price or liquidated-damages exposure.
10. Act 101 guidance remains pending as the effective date approaches
Status: Enacted; effective December 21; no detailed L&I implementation guidance verified this week.
Labor & Industry continues to state that it is assessing Act 101’s enforcement and compliance requirements and will provide more information. The law expands prevailing-wage coverage to specified project-specific off-site fabrication for covered public work. L&I prevailing-wage page Commonwealth of Pennsylvania
Separately, DGS opened applications for its construction- and design-focused Mentor-Protégé Program through November 9. Mentors must be Commonwealth prime contractors in good standing with at least one award of $300,000 or more during the past three years. DGS program announcement Commonwealth of Pennsylvania
Why it matters: Public-contracting opportunities are expanding, but so are compliance responsibilities. Contractors have less than seven weeks before Act 101 takes effect.
Construction takeaway: Continue requesting written L&I interpretation on out-of-state fabrication, certified payroll and GC responsibility. Qualified members should also consider the DGS mentor program as a way to develop dependable public-works subcontracting partners.
KCA Market Scorecard
Qualitative editorial assessment based on verified information available through November 6, 2026. It is not a statistical forecast. Categories without a material verified weekly update are explicitly flagged.
| Market | Assessment | Contractor signal |
| Data Centers | Strong demand / high execution risk | Triboro’s canceled meeting reinforces entitlement and litigation risk. No new Pennsylvania data-center construction start was verified this week. |
| Power/Energy | Strongly improving | Three Pennsylvania projects totaling approximately 1.7 GW entered PJM’s expedited review track, but permits and awards remain ahead. |
| Advanced Manufacturing | Positive | MillPress’s 49,920-square-foot build-to-suit facility creates an identifiable industrial opportunity. |
| Healthcare | Active | Older context: Geisinger’s nearly $900 million Danville project reached structural completion. No major new healthcare start was verified during the reporting week. |
| Higher Education | Stable/actionable | Penn State has multiple building-renewal packages currently out to bid. |
| Public Infrastructure | Positive | DCNR has active park, dam, sewage-treatment and shower-house solicitations; major energy infrastructure is advancing through interconnection review. |
| Adaptive Reuse | Improving but early-stage | Ross Loft moved through environmental review, but construction procurement and NTP were not verified. |
| Traditional Office | Weak | No material new traditional-office project was verified. Pittsburgh continues to remove office inventory through residential conversions. |
| Skilled Labor | Tight | No new Pennsylvania employment release this week. AGC’s national alert shows persistent shortages in critical crafts and management positions. |
| Construction Costs | High risk | AGC’s new alert confirms severe metals, fuel, freight and long-lead equipment pressure. |
What KCA Is Watching
- Energy projects converting to construction: PJM interconnection results, DEP permits, EPC selections and procurement schedules for French Creek Storage, Sammis and Hunterstown.
- Act 101 implementation: Written L&I guidance on out-of-state shops, applicable project dates, certified payroll, rate determinations and prime-contractor responsibility before December 21.
- Near-term bids and adaptive-reuse financing: Penn State and DCNR bid results, MillPress delivery-team identification and Ross Loft’s HUD funding release and construction procurement.
Bottom Line
Pennsylvania’s strongest growth lane is now clearly the connection between power supply and large-load development. The three expedited energy projects are significant, but they remain preconstruction opportunities until permits, contractors and procurement schedules are confirmed.
Outside energy, this week delivered practical work: an active Allentown warehouse start, a financed Bethlehem industrial facility and identifiable Penn State and DCNR bid packages. Adaptive reuse continues to outperform traditional office development, while data centers remain vulnerable to local approvals and litigation.
For KCA members, the strategy is straightforward: pursue projects that have financing, advertised packages or field activity; probability-weight everything else; and protect contracts against an unusually volatile combination of materials, equipment, labor and regulatory risk.
Preparation note: This report was compiled with assistance from ChatGPT using the publicly available sources linked throughout. It is intended for general industry information. Readers should independently confirm project status, bid deadlines and regulatory requirements before making business decisions.
