Why does Skanska matter to the U.S., and why does the U.S. matter to Skanska?
Skanska has deep-rooted values, and that is what sets us apart in the U.S. market. We have been building for a better society since 1887, and long before sustainability became a buzzword, we were already focused on being green. Since I joined the company in 2004, we have been at the forefront of sustainability efforts, working to meet the increasing demand for greener and more efficient practices in the construction industry.
Our long-standing commitment to this mission positions us well in the world’s largest economy. One of our strengths is our ability to bring expertise from our European and Nordic operations into the U.S. This knowledge sharing has been enhanced by digital tools, making collaboration across regions much more seamless. With advancements in technology, customers are now more open to receiving input from experts in other countries. This exchange of competencies works both ways, as we are also helping to transfer our U.S. knowledge back to Europe, particularly in areas like data centers, where we have established a strong position.
What is driving the current demand in the market, and how is Skanska navigating the opportunities?
The period before and after COVID feels like two different worlds. Before the pandemic, our business was strong, with both our building and civil operations performing well. When COVID hit, it disrupted everything, but it also brought a unique opportunity for collaboration. On the private side of our business, we worked closely with our customers to keep projects moving forward. Everyone understood the shared challenge, and we found innovative ways to push through. On the public side, there was a temporary lull as agencies pulled back and sent people home. However, the Infrastructure Investment and Jobs Act, along with the CHIPS Act, has injected significant stimulus into the construction industry. The demand for infrastructure projects has ramped up, and we now face a strong bidding environment. We must stay laser-focused on selecting the right projects that align with our expertise, but overall, it is an exciting time for Skanska and the U.S. construction industry.
Skanska has a reputation for implementing innovative technologies. How does this differentiate you from competitors?
Building Information Modeling (BIM) is widely used in the industry, but what sets us apart is how we use it collaboratively with customers, designers, and trade contractors to deliver efficient and sustainable projects. BIM, along with other tools like drones and visualization technology, helps us reduce costs for our customers by improving project planning and execution. However, tools are only as good as the people using them, and we pride ourselves on fostering an inclusive and collaborative environment to get the most out of these technologies.
Additionally, we have developed internal tools like Skanska SideKick, an AI-powered platform that leverages decades of company knowledge to benefit our customers. Another innovation is our proprietary safety tool, PlanIt, which uses data to enhance safety across our projects. These tools enable us to be more efficient, deliver high-quality results, and maintain a strong focus on safety, which is essential in today’s fast-paced construction environment.
With all the positivity around the market and company culture, what keeps you up at night?
One of my main concerns is the supply chain. The cost of materials has spiked in recent years, and prices have not come back down. This inflation puts pressure on our customers, and we need to find ways to be more efficient while maintaining safety and quality. Another concern is labor availability. There is a strain on the industry’s human capacity to deliver the volume of infrastructure projects currently in the pipeline. Thankfully, we have strong relationships in our core markets, but it’s a constant effort to source and train skilled labor.
The other challenge is managing the pressure for speed. Customers are demanding faster delivery times, but we cannot compromise on safety or quality. It is important to balance the understandable need for speed with the reality that some things, like construction timelines, can’t be rushed without risking mistakes. My focus is ensuring that we enable our people to work efficiently and safely while maintaining the high standards our customers expect.
Looking ahead, are there any specific hubs or industries in the U.S. that surprise you in terms of growth?
We are primarily concentrated on the coasts, as well as in Texas, Ohio, and Tennessee. Data centers have been a big growth area for us. The industry went through a bit of a lull but is now experiencing significant demand, particularly driven by the focus on cloud services. Companies are acquiring large plots of land close to power sources and need contractors they can trust to deliver these projects quickly. Another growth area is semiconductor manufacturing, driven by the push for onshoring after COVID. The CHIPS Act has stimulated investment in this sector, and we’re seeing it pop up across various regions.
What key milestones are you excited about over the next few years?
In terms of milestones, we have hit several significant ones recently, like the 50% completion mark on the Portal North Bridge project in New Jersey. This is a critical rail artery for the Northeast, and we’re proud to be on time and on budget. We’ve also secured major projects in the Pacific Northwest and Los Angeles, including light rail and roadway renovation projects. The development of offshore wind at the South Brooklyn Marine Terminal is another exciting initiative, as we need renewable energy to lower carbon emissions in the U.S.
