from Mark Smith, Advocate, California Builders Alliance
The Architecture Billings Index from the American Institute of Architects rose to 49.5 in February from 43.8 in January, suggesting stabilization despite a decline in billings. The South saw increased billings, while the Northeast lagged. Global economic uncertainty persists, but new project inquiries are up.
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Full Story: The Architect's Newspaper |
The producer price index for nonresidential construction materials and services rose 0.1% in February from January and 3.1% year over year, driven by significant increases in metals and fuel costs, according to the Associated General Contractors of America. "Major increases in the prices for diesel fuel and key metals occurred before the start of the Iran war," AGC chief economist Ken Simonson says. "The disruption of oil, natural gas and aluminum supplies from the Middle East is pushing up construction costs further and causing owners to delay projects." Construction prices rise amid metals, fuel cost increase
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Full Story: Associated General Contractors of America |
The closure of the Strait of Hormuz because of US and Israeli strikes on Iran could increase steel, aluminum, copper and cement prices, Linesight warns. The longer the blockade lasts, the greater the impact on material availability and prices, the consulting firm says.
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Full Story: Global Construction Review (UK) |
US spending on data center projects surpassed that of office construction for the first time in late 2025, according to a report by Turner Construction. The trend, driven by the demand for computing power and data storage, has attracted tech giants such as Meta, Amazon, Google and Microsoft to areas with stable economies, such as Columbus, Ohio.
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Full Story: Bloomberg |
For the fifth consecutive year, the US Federal Reserve faces unexpected disruptions in its efforts to achieve 2% inflation, with the latest challenge being the war in the Middle East, which has the potential to increase energy and commodity prices. The Fed is likely to keep rates steady when officials meet this week, but there is uncertainty about future rate cuts. The situation is further complicated by simultaneous shocks, including tariffs and immigration issues, making it difficult for the Fed to make decisive policy moves.
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Full Story: The Wall Street Journal |
The pickleball boom has created a lucrative market for asphalt and pavement contractors, with companies like American Sports Construction seeing significant growth in demand for pickleball court construction. The work involves familiar skills such as surface preparation and crack repair, but requires a higher level of precision and attention to detail. Contractors are finding opportunities not only with homeowners associations, but also with parks, schools, and private developments.
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Full Story: For Construction Pros |
The Interior Department is allocating $889 million for water infrastructure projects in six Western states under President Donald Trump's One Big Beautiful Bill. California will receive $540 million, primarily for Central Valley projects including the Delta-Mendota Canal and Friant-Kern Canal. Other allocations include $100 million each for projects in North Dakota, Utah and Wyoming. "These investments strengthen our nation's water security, modernize aging infrastructure and support the farmers, communities and industries that depend on reliable water supplies," says Interior Secretary Doug Burgum.
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Full Story: The Construction Broadsheet |
The US faces a massive financial challenge in updating its water infrastructure, with the EPA estimating in 2023 that utilities will require $625 billion over the next two decades, two-thirds of that allocated to water transmission and distribution systems. Industry groups suggest even higher investment needs, with the Value of Water Campaign projecting $1.6 trillion to account for regulatory changes and lead pipe replacements. While the Infrastructure Investment and Jobs Act provided a temporary $50 billion funding boost, that support is set to expire this year, raising concerns about how cities will fund the necessary upgrades.
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Full Story: Circle of Blue (Traverse City, Mich.) |
Hensel Phelps plans to deploy an AI-powered progress-tracking system from Track3D on more than 200 projects after a successful trial at San Francisco International Airport. The system saved $342,000 and 3,000 hours of labor on the Courtyard 3 Connector project.
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Full Story: Engineering News-Record (tiered subscription model) |
AI was a major theme at CONEXPO-CON/AGG in Las Vegas, with Oracle showcasing its Construction and Engineering Advisor for Safety, which has helped Suffolk Construction and Boldt Construction reduce safety incidents by more than 30%. Command Alkon introduced a tool for concrete batch plant management, and Doosan Bobcat unveiled compact loaders with voice-activated AI to assist new operators.
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Full Story: Engineering News-Record (tiered subscription model) |
President Donald Trump has signed an executive order to reduce regulatory barriers to affordable housing, directing agencies to revise rules related to the Clean Water Act, National Environmental Policy Act and energy-efficiency standards. The order also encourages state and local governments to streamline permitting processes and reconsider building codes to promote affordable housing.
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Full Story: The National Law Review |
General contractors should consider shifting from competitive bidding to negotiated contracts to increase return on investment, writes Chad Prinkey, founder and CEO of Well Built Construction Consulting. Prinkey notes that while competitive bidding typically yields a 25% win rate and can create significant overhead waste, negotiated work offers a 75% win rate and better profitability, although it requires more upfront time and effort.
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Full Story: Construction Dive |
The Environmental Protection Agency has proposed a rule to streamline permitting under the Clean Water Act, specifically targeting Section 401 water quality certification. The changes propose to clarify regulatory expectations, reduce delays and standardize procedures for infrastructure and industrial projects that may discharge into US waters. The proposal is open for public comment, and if finalized, it could significantly affect water infrastructure, energy development and industrial operations by accelerating project timelines.
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Full Story: Politico |
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Rick Andritsch, vice president of business development at VJS Construction Services, has been named national president of the Associated General Contractors of America, becoming the first Wisconsin-based construction leader to hold the position. Andritsch, who has been involved with AGC for more than 25 years, will focus on policies that strengthen the construction industry, address workforce shortages and promote infrastructure investment. "Rick has the voice and energy we need at AGC of America right now," AGC of Greater Milwaukee CEO Mark Kessenich said. "He understands and is ready to tackle key issues facing the construction industry both here and across the country."
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Full Story: The Daily Reporter (Milwaukee) |
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Sacramento's new $514 million, 18-story Tani G. Cantil-Sakauye Courthouse--featuring 53 courtrooms and 540,000 square feet--will fully open in late April 2026 after construction delays pushed the project's start from fall 2019 to late 2020, with Clark Construction Group building the facility designed by architecture firm NBBJ. The project survived years of funding diversions during California's budget crisis when roughly $1.4 billion from the court construction fund was redirected to the state's general fund, but was finally approved for funding in 2018 after the Judicial Council first approved plans in February 2016.
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Full Story: The Sacramento Bee (Calif.) (tiered subscription model) |
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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
