from Mark Smith, Advocate, California Builders Alliance
Construction material costs rose 3.6% year-over-year in November 2025, the fastest increase since January 2023, driven by 50% tariffs on aluminum and steel that pushed aluminum mill shapes up 28% and fabricated structural metal products up 16.6%, according to an analysis of government data. While contractor bid prices increased only 2.7% annually as firms struggle to pass along costs, The Associated General Contractors of America's 2026 survey shows dampened expectations across most sectors except data centers (net 57% positive) and power projects (net 34%), with 62% of contractors citing economic recession as their top concern and 70% reporting tariff impacts on their operations.
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Full Story: Construction Citizen |
The Architecture Billings Index ended 2025 at 48.5, showing a slower decline in billings compared with November's 45.3. The Midwest saw billings growth for the fourth consecutive month, while the Northeast lagged. Despite the overall decline, many firms report robust project backlogs.
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Full Story: The Architect's Newspaper |
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Data centers a bright spot amid flat commercial construction |
Commercial construction is expected to see little or no growth this year, with spending on offices, hotels and apartments projected to decline, according to FMI. However, data center construction is expected to increase 23% amid growing demand from tech companies such as Amazon, Google and Oracle for artificial intelligence infrastructure.
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Full Story: The Wall Street Journal |
Construction spending rose 0.5% in October, driven by a 4.5% increase in residential improvements and a slight uptick in public works, according to the Associated General Contractors of America. However, single-family homebuilding dropped 1.3%, and private nonresidential spending dipped 0.2%. AGC's recent survey shows subdued contractor expectations for growth, except in data centers and power projects. "Cutting red tape, making go or no-go decisions more quickly and continuing to invest vital infrastructure will boost employment, stimulate new economic activity and make the American economy even more competitive," AGC CEO Jeffrey Shoaf says.
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Full Story: Associated General Contractors of America |
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The Department of the Interior has added high-level review steps for wind and solar projects, increasing schedule uncertainty and potentially causing delays. Developers are advised to minimize impacts on sensitive resources and implement strategies such as smart scheduling to navigate these challenges.
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The Trump administration has rolled back part of the National Environmental Policy Act to expedite federal approval for infrastructure projects involving water and wastewater. The changes impose stricter timelines and page limits for environmental reviews, potentially speeding up permitting. However, legal experts warn that the rollback could increase litigation risks and lead to environmental damage.
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Full Story: Water Online |
The fiscal 2026 Transportation, Housing and Urban Development bill provides $113.2 billion in total new discretionary funding to strengthen transportation systems, expand affordable housing, prevent evictions for more than 4 million households, and combat homelessness, while making major investments in highways, transit, aviation, rail, and maritime readiness. The legislation significantly exceeds both the House Republican bill and the President's request, preserves Bipartisan Infrastructure Law commitments, protects fair housing and tenant safeguards, and rejects policy riders that would weaken housing stability, environmental standards, or transportation safety.
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Full Story: US House of Representatives |
The Sites Project Authority has selected Barnard Construction as construction manager at risk for an up-to-$3 billion portion of the $6 billion Sites Reservoir project in California. The project will create a storage facility that will add 1.5 million acre-feet of storage using stormwater from the Sacramento River.
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Full Story: The Construction Broadsheet |
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DeWalt, August Robotics unveil drilling robot for data centers |
DeWalt has partnered with August Robotics to introduce a fleet-capable robot for downward concrete drilling, targeting data center construction. The robot, which can drill up to 10 times faster than traditional methods, aims to reduce construction timelines by up to 80 weeks. During a pilot program with a major hyperscaler, the robot demonstrated 99.97% accuracy in drilling over 90,000 holes.
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Full Story: Interesting Engineering |
Moody's Ratings forecasts $3 trillion in global data center infrastructure investment over the next five years, driven by double-digit capacity growth. Power availability is a significant bottleneck, with developers increasingly relying on on-site generation and remote locations. The six largest US hyperscalers are expected to spend $500 billion in capital expenditures in 2026, rising to $600 billion in 2027.
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Full Story: Data Center Knowledge |
Federal review has resumed for the modernization of the White House East Wing, including President Donald Trump's privately funded ballroom, which is estimated to cost between $200 million and $400 million. The project highlights the challenges of integrating large private construction with publicly funded federal facilities, raising concerns about long-term maintenance and operational costs. The National Trust for Historic Preservation has filed a lawsuit to halt the project until proper reviews are completed.
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Full Story: Engineering News-Record (tiered subscription model) |
President Trump demolished the Cold War-era Presidential Emergency Operations Center bunker beneath the East Wing as part of his $400 million ballroom project, with officials citing "top-secret" underground reconstruction using modern technology to counter evolving threats. The historic bunker, built by FDR during WWII and used during 9/11 and the 2020 protests, is being replaced while Clark Construction and partners work on the above-ground ballroom expected to seat 999 people and be completed before January 2029.
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Full Story: CNN |
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Data standardization needed for AI to thrive in construction |
Data standardization is a significant barrier to the effective use of artificial intelligence in construction, writes Amir Berman of Buildots. Construction data is often siloed and inconsistent, making it difficult to integrate and analyze across projects. Berman calls for "active governance," where leaders treat data as a strategic asset, standardize data collection and reject unstructured data.
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Full Story: Construction Dive |
The Los Angeles Metro board has approved an underground heavy-rail option for the Sepulveda Transit Corridor project, which would connect the Westside to the San Fernando Valley and potentially ease traffic congestion along the 405 Freeway. However, funding remains a major concern, with only $3.5 billion secured out of an estimated $24.2 billion needed.
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Full Story: Los Angeles Times (tiered subscription model) |
Pacific Cruise Terminals, a joint venture between Carrix and JLC Infrastructure, has been chosen by the Port of Los Angeles to develop and operate the Outer Harbor cruise terminal and redevelop the World Cruise Center. The new terminal will feature a net-zero design, enhanced connectivity, and public spaces, aiming to position Los Angeles as a premier West Coast cruise gateway. The project is expected to generate significant economic benefits for the local community.
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Full Story: Seatrade Cruise News (UK) |
____________________________________________________
Mark Smith
Advocate
California Builders Alliance
5370 Elvas Avenue ǀ Sacramento, CA 95819
Cell: 916.335.5072
Email: mark.smith@calbuilders.org
Email: mark@smithpolicygroup.com
