KCA Statement on the 2026-27 Pennsylvania State Budget

HARRISBURG, PA — The Keystone Contractors Association (KCA) appreciates the completion of Pennsylvania’s 2026-27 State Budget and is encouraged by its overall fiscal restraint.

From the perspective of Pennsylvania’s construction industry, we are pleased that the Commonwealth maintained its commitment to fiscal stability by preserving the Rainy Day Fund. Maintaining healthy reserves strengthens Pennsylvania’s financial position and helps provide confidence for taxpayers, employers, and the businesses that build and maintain the Commonwealth’s infrastructure.

We are also encouraged that the budget contained relatively few major policy changes. While there are many important issues facing Pennsylvania, significant policy decisions deserve careful analysis rather than being rushed through the budget process.

In particular, KCA believes it was prudent not to advance major initiatives like the legalization of recreational marijuana as part of this year’s budget negotiations. KCA does not support the legalization of marijuana, but we do understand that complex issues like this carry long-term economic, regulatory, and workforce implications and should receive thoughtful public debate, stakeholder feedback and legislative committee reviews before becoming law.

Pennsylvania has experienced the consequences of rushing major policy initiatives before. When casino gaming was legalized during the Rendell administration, the process moved quickly, and several casino licenses were awarded to investors whose financial capacity had not been fully vetted. One project ultimately experienced significant financial problems, leaving construction contractors and suppliers with substantial unpaid work. The financial losses were severe enough that two Pennsylvania construction companies ultimately went out of business.

That experience serves as an important reminder that economic development initiatives must be paired with strong financial due diligence and responsible oversight. As an advocate for construction employers, we cannot stress enough how important it is for careful planning to protect both taxpayers and the businesses that invest their people and resources into these projects.

KCA looks forward to working with the Shapiro Administration and the General Assembly on policies that strengthen Pennsylvania’s construction industry, promote responsible economic growth, and ensure the Commonwealth remains financially sound for years to come.

About the Keystone Contractors Association

The Keystone Contractors Association (KCA) is a leading Pennsylvania commercial construction association representing contractors, specialty contractors, suppliers, and industry partners. KCA is dedicated to advancing the construction industry through advocacy, workforce development, education, safety, and member services while helping build a stronger Pennsylvania.

Media Contact:
Jon O’Brien
Executive Director
Keystone Contractors Association
717-884-2801
Jon@KeystoneContractors.com

Pennsylvania Construction Recap – The Top Stories for the Week Ending July 10, 2026

Here are the top Pennsylvania construction stories this week:

Pennsylvania Demographics Continue to Affect Hiring: The Pennsylvania Chamber continues warning that workforce availability—not unemployment—is becoming the state’s biggest economic challenge. Some notable figures: For every 100 jobs open, only about 77 qualified Pennsylvanians are available; and, an aging workforce and slower population growth are reducing the available labor pool, particularly in the skilled trades. READ MORE.

Northeast Pennsylvania Reports Ongoing Workforce Challenges: A recent regional economic report found construction activity remains relatively strong in Northeast Pennsylvania, but contractors continue identifying workforce shortages as one of the industry’s primary constraints on growth. READ MORE.

KCA Surpasses $100,000 in Scholarships: The Keystone Contractors Association (KCA) proudly announced that it has awarded more than $100,000 in college scholarships since launching its scholarship program in 2022, marking a significant milestone in its commitment to developing Pennsylvania’s next generation of construction industry leaders. Designed with a singular mission, the KCA Scholarship Program is unlike any other in the Commonwealth. KCA proudly refers to it as “Pennsylvania’s Scholarship” because every dollar invested stays in Pennsylvania. READ MORE (CPBJ is password protected. If you cannot view article, click to read KCA release).

PHOTO CAPTION: KCA Education Committee Chairman Jim Darr with the 2026 KCA Scholarship winners: Kevin Brown, Lindsay Baer and Keely Nunn.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Construction Recap – The Top Stories for the Week Ending July 3, 2026

Construction is one of America’s most patriotic industries because we build the nation, live the values that made America great and leave every community stronger than we found it. For 250 years, builders have helped write the American story – and we’re proud to continue that legacy today.

In honor of 250 years of the United States of America, this week’s recap features three reasons why Pennsylvania’s construction industry has a deep tradition of patriotism that is rooted in its history, workforce and mission.

  1. Construction Literally Builds America: No industry has a more direct connection to the nation’s growth than construction. Pennsylvania contractors build and maintain the infrastructure that keeps America moving. Construction professionals don’t just work in America—they build the places where Americans live, work, learn, and serve. That creates a strong sense of pride and purpose.
  2. The Industry Shares America’s Founding Values: Construction reflects many of the same values that have defined America for 250 years. Many contractors are family-owned businesses that have been passed from one generation to the next. Pennsylvania has construction companies that are fourth-, fifth-, and even sixth-generation family businesses. Those traditions mirror the American story of entrepreneurship, perseverance, and building something lasting for future generations. Some of our industry’s values:
    • Hard work
    • Self-reliance
    • Personal responsibility
    • Teamwork
    • Freedom to build businesses and careers
    • Opportunity through the skilled trades
  3. Construction Has a Strong Tradition of Service: The construction workforce has long included military veterans, volunteer firefighters, first responders, coaches, community leaders, and civic volunteers. Many construction professionals see their work as serving their communities, not just earning a living. Building a safer bridge, a new school, or a veterans’ facility has a lasting impact on people’s lives. Construction companies regularly:
    • Rebuild communities after a natural disaster.
    • Donate time, equipment, and materials to charitable causes.
    • Support local schools, youth sports and community organizations.

Happy 250th Birthday America!

Pennsylvania Construction Recap – The Top Stories for the Week Ending June 5, 2026

Here are the top Pennsylvania construction stories this week:

Data Center Construction Continues to Dominate Pennsylvania: The biggest story remains the race to attract AI and hyperscale data centers. Governor Shapiro unveiled details of his proposed incentive package aimed at attracting billions of dollars in additional data center investment. The proposal is receiving support from many construction unions and contractors because of the enormous amount of work these facilities create. READ MORE.

University of Pennsylvania Housing Redevelopment Moves Forward: The University of Pennsylvania finalized a partnership with Greystar to redevelop a 493-bed student housing complex in Philadelphia. The project is another sign that institutional and higher-education construction remains active despite broader concerns about commercial real estate. READ More.

2026 Construction Celebration is Monday Night: Construction’s biggest night in our state capital is this Monday, June 8. See you in Harrisburg: 2026 Construction Celebration, Monday, June 8  •  5 PM – 7 PM.

Stay Safe, Stay Informed & Keep Building Pennsylvania.

Pennsylvania Construction Recap – The Top Stories for the Week Ending May 29, 2026

Here are the top Pennsylvania construction stories this week.

Material Cost Pressures Return: Contractors are once again dealing with rising prices for copper, lumber, aluminum, and diesel fuel. These increases are creating new challenges for estimating, bidding, and project budgeting across both commercial and residential construction sectors. READ MORE.

Pittsburgh Lands $418 Million Convention Center Hotel Project: Plans were announced for a new 500-room luxury hotel adjacent to Pittsburgh’s convention center. The project represents one of the largest commercial construction developments announced in Western Pennsylvania this year and is expected to generate significant work for contractors and trades. READ MORE.

KCA Wraps Up 2026 Mental Health Awareness Month with a Powerful Discussion: The KCA’s Mental Health Awareness Task Force hosted Hard Hats & Healing: Continuing the Conversation on Mental Health to wrap up this year’s Mental Health Awareness Month. This event featured a construction executive who provided an update on his mental health journey two years after his initial KCA presentation. He shared his struggles with severe clinical anxiety and depression, emphasizing the importance of medications as a starting point for treatment, the role of faith in recovery and the critical need for supportive communities and understanding leaders in the construction leaders. To view the discussion: Hard Hats & Healing: Continuing the Conversation on Mental Health in Construction.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Construction Recap – The Top Stories for the Week Ending May 22, 2026

Please join the KCA in taking a moment this Memorial Day weekend to remember and honor the brave men and women who gave their lives in service to our country. May we carry their legacy forward with gratitude, respect and a commitment to the freedoms they protected.

Here are the top Pennsylvania construction stories this week.

Contractors Relieved by PA Supreme Court Decision in the Clearfield County Case: The case was Clearfield County v. Transystems Corp., involving defects alleged at the Clearfield County jail project that had originally been completed in 1981. Supreme Court of Pennsylvania ruled that Pennsylvania’s 12-year construction statute of repose cannot be bypassed by government entities using the doctrine of nullum tempus (“time does not run against the king”). If the county had won, public owners potentially could have pursued construction claims decades after projects were completed. The Keystone Contractors Association filed an amicus brief supporting the contractors and arguing against extending nullum tempus to statutes of repose. The Court’s opinion specifically acknowledged KCA’s participation along with several industry groups. This week the KCA hosted a seminar on the decision, to watch the video: We Dodged A Bullet, Understanding the PA Supreme Court’s Clearfield County Decision.

AI & Data Center Construction Boom Continues to Dominate: The largest story in Pennsylvania construction remains the surge in AI-driven data center development. State lawmakers are now debating new regulations tied to energy use, utility infrastructure, and clean-energy requirements for hyperscale facilities. Major projects tied to Amazon Web Services and the Homer City redevelopment continue driving huge labor demand across the trades. READ MORE.

Office-to-Residential Conversions Accelerating: Adaptive reuse continues gaining traction across Pennsylvania cities. A 120-year-old office tower in Downtown Pittsburgh is being converted into affordable housing in a $30 million redevelopment project. READ MORE.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Construction Recap – The Top Stories for the Week Ending May 15, 2026

Here are the top Pennsylvania construction stories this week:

AI + Data Center Construction Boom Accelerating Across PA: The biggest trend in Pennsylvania construction right now continues to be the explosion of AI-related data center and energy infrastructure projects. The Homer City redevelopment project in Western PA — combining a massive gas-fired power plant with a large-scale data center campus — remains one of the most significant active developments in the state. At the same time, proposed data center campuses in Archbald, Lackawanna County, are triggering intense community opposition over environmental impacts, land use, and infrastructure strain. The debate is becoming a statewide issue as Pennsylvania positions itself as an AI infrastructure hub. READ MORE.

Pressure Builds Around End-of-Session Infrastructure Negotiations in Harrisburg: As the Pennsylvania legislative session enters its final stretch, negotiations continue around a major capital investment and infrastructure package. Industry groups are closely watching whether lawmakers finalize funding mechanisms that could affect public construction, transportation, and economic development projects statewide. READ MORE.

Construction Industry Watching Interest Rates Closely as Mortgage Rates Rise Again: New mortgage-rate data published this week shows borrowing costs moving back upward into the mid-6% range. Pennsylvania builders and developers continue monitoring financing conditions carefully because higher rates could slow portions of the residential and multifamily construction market during peak building season. READ MORE.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Construction Recap – The Top Stories for the Week Ending May 8, 2026

Here are the top Pennsylvania construction stories this week:

AI data centers are becoming Pennsylvania’s next mega-construction boom
The dominant story this week was the accelerating push to build large-scale AI and hyperscale data centers across Pennsylvania. Building trades unions, energy companies, and state leaders are increasingly aligned around the opportunity because of the enormous labor demand these facilities create. Reports indicate some unions are seeing apprentice classes double in size due to anticipated work volumes. READ MORE.

UGI and Prime Data Centers unveil major Northern Tier infrastructure project
A particularly significant announcement involved a planned hyperscale AI campus in northern Pennsylvania. UGI Energy Services and Prime Data Centers are planning a dedicated natural gas pipeline and on-site power generation system to support what could become one of the state’s largest AI computing facilities.
Key details include:

  • More than $100 million in gas infrastructure investment
  • Massive projected energy demand
  • Long-term pipeline and utility construction opportunities
  • Significant rural economic development implications
    The project reflects how energy infrastructure is now driving construction strategy for tech developments in Pennsylvania. READ MORE.

Energy infrastructure and construction policy move to the forefront
A Luzerne County roundtable led by Dave McCormick focused heavily on energy permitting, infrastructure growth, and construction-related economic development. Discussions centered on how Pennsylvania can capitalize on AI-related construction demand while expanding utility and generation capacity. READ MORE.

CAPTION: This week the Harrisburg Chamber and the KCA hosted the Building Supplier Connections Mixer at Novinger’s. Seen in the photo are the hosts (L-R) Jon O’Brien of KCA, Tracy Novinger of Novinger’s and Jamal Jones of the Chamber.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Construction Recap – The Top Stories for the Week Ending May 1, 2026

Here are the top Pennsylvania construction stories this week:

Data center boom sparks backlash (statewide impact): A major controversy is unfolding in Archbald (Lackawanna County), where multiple large-scale data centers are proposed—covering ~14% of the town. Residents are pushing back over environmental impact, water usage, and grid strain, forcing state leaders (including Gov. Shapiro) to reconsider how aggressively to fast-track these projects. This reflects a broader statewide trend: rapid growth of AI/data infrastructure vs. community resistance—a defining construction issue right now. Data centers are becoming one of the largest drivers of non-residential construction in PA, but also one of the most politically sensitive. READ MORE.

$10B power plant + data center construction project underway: A massive energy + data center campus project near Homer City, Pennsylvania has begun construction, with projections of thousands of jobs. This project reinforces the energy–construction linkage and shows where large-scale capital is flowing in Pennsylvania construction. READ MORE.

Permitting reform framed as a workforce/jobs issue: US Senator Dave McCormick introduced federal legislation targeting permitting delays that are holding up infrastructure and energy projects. The argument: delays are tying up thousands of potential construction jobs and trillions in economic activity. Workforce shortages aren’t just about labor supply anymore. Project delays = idle workforce capacity + missed job creation. READ MORE.

CAPTION: The KCA Board of Directors and their spouses gathered recently for its Spring meeting.

Stay Safe, Stay Informed & Keep Building Pennsylvania

Pennsylvania Construction Recap – The Top Stories for the Week Ending April 24, 2026

Here are the top Pennsylvania construction stories this week:

Downtown Pittsburgh construction surge tied to NFL Draft: Multiple projects were fast-tracked or completed ahead of the 2026 NFL Draft in Pittsburgh. The city is seeing a wave of public-space upgrades and infrastructure improvements tied to tourism and long-term redevelopment. Economic impact is projected at $200M+, reinforcing the role of large events in accelerating construction timelines. READ MORE.

New $31M Arts Landing Park opens (rapid delivery project): Arts Landing Park is a 4-acre, $31M project opening this week. Delivered in just 22 months, which is notably fast for a project of this scale. Includes playgrounds, performance space, and public art infrastructure. Speed-to-delivery and private funding models are becoming more common in urban redevelopment. READ MORE.

Energy Proposals in the PA House Have Mixed Receptions: Pennsylvania House Democrats have proposed an energy package aimed at lowering consumer costs, but a key provision to cap utility return on equity (ROE) is raising concerns from industry groups. Critics argue the cap could discourage billions in infrastructure investment—like grid upgrades and pipelines—potentially leading to long-term reliability issues and higher costs down the road. READ MORE.

Photo Caption: This week the ACE Mentor Central PA Chapter held its annual breakfast fundraiser, which honored this year’s scholarship winners. In the photo was the event’s keynote speaker, Rocky Bleier, who gave an inspiring address stressing the importance of resilience, teamwork and hard work. Rocky is seen with the ACE Mentor Centre County Scholarship Recipient Gilby Martin and Gilby’s family.

Stay Safe, Stay Informed & Keep Building Pennsylvania!