from Mark Smith, Advocate, California Builders Alliance
Impact of tariffs on construction prices causes concern
Construction material prices "shot up" during March, with "rapid-fire changes in tariffs" poised to push the prices of key construction materials higher, according to AGC Chief Economist Ken Simonson. AGC is urging the Trump administration to pause any new tariffs until the impact of those already implemented is clear, with AGC CEO Jeffrey Shoaf saying it is difficult for members to "deliver that best value when you have no idea how much you are going to have to pay for many of the materials required to build projects." Full Story: Construction Dive
Economists revise US forecasts on tariff uncertainty
Economists have significantly revised their forecasts since US President Donald Trump took office, citing tariffs as the main reason. According to a survey, growth estimates for 2025 have been cut to 0.8%, down from 2% in January, while inflation and unemployment projections have risen. The probability of a recession in the next 12 months has increased to 45%. Full Story: The Wall Street Journal MarketWatch (tiered subscription model)
AGC economist: Tariff pause hasn't restored confidence
Although President Donald Trump's pause of most new tariffs for 90 days briefly boosted the stock market, it has not alleviated concerns in the construction industry. AGC Chief Economist Ken Simonson and Sarah Martin of Dodge Construction Network have noted that the uncertainty and high tariffs on Chinese goods could slow construction activity and create supply chain challenges. Full Story: Engineering News-Record (tiered subscription model)
Trump undecided on corporate tax hike as GOP seeks revenue offsets
As Republicans face pressure to find revenue offsets for their tax overhaul, President Donald Trump has not yet decided whether to support a corporate tax increase to fund other tax cuts, Press Secretary Karoline Leavitt said Tuesday. Meanwhile, Treasury officials signaled that raising the top individual income tax rate remains on the table, though no specific measures have been endorsed. Lawmakers are weighing a range of options to secure enough votes for a sweeping tax package later this year. Full Story: Politico Pro (subscription required) Axios
Federal judge orders release of frozen IRA, IIJA funds
Federal Judge Mary McElroy has ordered the Energy Department, Environmental Protection Agency and other agencies to immediately resume the disbursement of funds from the Inflation Reduction Act and Infrastructure Investment and Jobs Act. President Donald Trump has the right to enact his agenda, however "agencies do not have unlimited authority to further a President's agenda, nor do they have unfettered power to hamstring in perpetuity two statutes passed by Congress during the previous administration," said McElroy. Full Story: E&E News
OSHA schedules hearing for federal heat protection rule
OSHA has scheduled a public hearing June 16 for a proposed rule to address heat stress, a leading cause of weather-related death in the US. The rule would require employers to implement heat injury prevention plans, with measures such as shaded rest areas and hydration protocols. Full Story: Occupational Health & Safety
Contractors shift mental health focus beyond EAPs
During the 2025 AGC Annual Convention, representatives from Granite Construction, Mascaro Construction and Yates Construction shared different approaches to combating the industry's mental health crisis. Granite Construction has introduced the "Leaders Do MORE" framework to improve communication and resilience, while Mascaro Construction has partnered with Youturn Health to provide proactive mental health training. Yates Construction and its joint venture partners on a multibillion-dollar project in Ohio are promoting mental fitness and using apps to manage stress. Full Story: SmartBrief/Infrastructure
Mental health focus helps Shawmut cut injuries by 47%
Shawmut's safety culture is deeply ingrained in its operations, with comprehensive orientation for subcontractors and a focus on mental health and safety that has helped lead to a 47% reduction in injuries since 2018. Led by Chief Safety Officer Shaun Carvalho, the program includes initiatives like a mandatory 30-minute safety video addressing mental health and substance use and monthly Culture of Care toolbox talks. Full Story: Engineering News-Record (tiered subscription model)
Health care construction weathers economic slowdown
Health care construction has remained robust amid economic uncertainty, with spending reaching $69.78 billion in February, according to a Robins \\u0026 Morton report. The report notes that healthcare facilities continue to modernize to compete, and developers rely more on contractors to manage rising costs and mitigate risk. "Healthcare construction is somewhat unique in that it is more insulated from economic uncertainty than other sectors," says Derek Gregg, vice president of operations at Robins & Morton. "First, demand for healthcare services remains the same regardless of economic activity. Second, the process of planning healthcare projects, raising or allocating appropriate funding and beginning construction activities often takes place on a longer timeline than other commercial ventures." Full Story: Construction Dive
Contractors' AI skepticism is slowly changing
An openness to AI was apparent at the Associated General Contractors of America's annual convention, even though AI still struggles with certain tasks, such as registering 2D floor plan elements. A project at the San Francisco International Airport was highlighted at the event to demonstrate how Hensel Phelps used Track3D's AI to track progress and identify errors. Pete Malmberg from C&C Drywall told conference attendees that the best approach to AI is to "start small, then you can fail small." Full Story: SmartBrief/Infrastructure
Report: Amid uncertainty, office demand holding steady
Despite economic headwinds, Cushman & Wakefield's Q1 2025 office marketbeat report shows signs of resilience in the U.S. office market, with quarterly office demand rising and sublease availability declining for the fourth straight quarter. Although vacancy remains elevated at 20.8%, limited new construction and improving absorption suggest cautious optimism for higher-quality office space. Full Story: Construction Dive
4 new tools aim to reshape construction workflows
Four new construction tech tools released this month are helping to transform preconstruction, site management, road work, and timber design—from PlanHub’s all-in-one bidding platform to XYZ Reality’s real-time 4D BIM tracking and Topcon’s advanced paving tech, which includes a new version of its mobile RD-M2 LiDAR scanner. Australia’s CLT Toolbox also debuts in North America, helping engineers streamline timber building design with code-validated tools and early regional partnerships. Full Story: Construction Dive
USDOT funds Otay Mesa project, cancels Texas rail grant
The Department of Transportation has approved a $150 million grant for the Otay Mesa East Port of Entry project in California, enhancing border security and traffic management. Concurrently, USDOT has canceled a $64 million grant for a high-speed rail project between Dallas and Houston, citing rising costs and reliance on Amtrak. Secretary Sean Duffy criticized the former administration's grant management, highlighting a shift from green requirements to focus on national security and efficiency. Full Story: Newsweek (tiered subscription model) The Construction Broadsheet
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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
