from Mark Smith, Advocate, California Builders Alliance
Post-pandemic construction demand is cooling even as backlog remains relatively resilient, pushing contractors to pivot from just-in-time to just-in-case procurement while tightening cash-conversion cycles with ERP-to-bank integrations. Input-cost pressure has moderated overall but remains noisy with tariff volatility. Contractors are leaning on AI, BIM, GPS-guided equipment and reality capture to compress rework and offset labor scarcity. The Associated General Contractors of America has flagged ransomware, fraudulent wire transfers and breaches of intellectual property and bid data as key issues facing the industry.
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Full Story: The Business Journals (tiered subscription model) |
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Construction starts fell 10.2% in July, according to Dodge Construction Network. Nonresidential building starts dropped 30.1%, residential starts declined 3.1% and nonbuilding starts rose 20.4%. "The latest data reinforced trends we have been watching since the beginning of the year: single-family building and manufacturing are struggling, but data centers continue to boom," Chief Economist Eric Gaus says.
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Full Story: Dodge Construction Network |
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The American Institute of Architects reports that the Architecture Billings Index dropped to 46.2 in July from 46.8 in June, indicating a continued decline in billings. Inquiries for new projects remain strong, but design contracts and billings are down. The commercial and institutional sectors show stability, but the multifamily residential sector faces significant challenges.
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Full Story: The Architect's Newspaper |
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Investors are assessing the impact of multiple trends on the rental market, including the role that immigration plays in demand. Chris Nebenzahl of John Burns Research and Consulting notes that retention among current renters is strong. "We've seen retention reach record highs from the REITs," Nebenzahl says.
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Full Story: GlobeSt (free registration) |
Labor shortages are the leading cause of construction delays, with 92% of firms struggling to hire and 45% reporting postponed projects, according to a national survey by the Associated General Contractors of America and the National Center for Construction Education and Research. Nearly one-third of respondents say stepped-up immigration enforcement has disrupted staffing, while underfunded training and limited visa options leave many applicants without required skills. AGC urges Congress and the Trump administration to boost career-tech funding and create lawful work pathways as firms raise pay, invest in training and expand digital recruiting amid tariff-driven cost pressures.
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Full Story: Associated General Contractors of America |
The US labor market is experiencing a significant shift due to a dramatic decrease in immigration, with net immigration potentially turning negative for the first time in decades. Economists warn that without positive net immigration, the labor force will struggle to grow, potentially leading to larger budget deficits and reduced economic dynamism.
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Full Story: The Wall Street Journal |
Only 51% of US metro areas added construction jobs from July 2024 to July 2025, with Arlington-Alexandria and Las Cruces leading gains, while Riverside-San Bernardino and Niles saw significant declines, according to the Associated General Contractors of America. AGC plans to release a survey highlighting contractors' struggles to find qualified workers, exacerbated by stricter immigration enforcement.
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Full Story: Associated General Contractors of America |
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A 50% tariff on steel and aluminum has been imposed on 407 product categories, including construction equipment and parts, to prevent tariff circumvention and support US steel and aluminum industries. The Associated Equipment Distributors warn the tariffs will raise costs for machinery essential for infrastructure and agriculture. Caterpillar, John Deere, Kubota and CNH Industrial are already reporting significant financial impacts.
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Full Story: Equipment World |
The Trump administration is updating the Federal Acquisition Regulation to streamline procurement and boost competition, with most sections already revised. The Office of Management and Budget's Office of Federal Procurement Policy has directed agencies to eliminate nonstatutory requirements from future contracts. The the Associated General Contractors of America is pleased the updates could streamline federal procurement for businesses, but notes that the update retains a project labor agreement requirement for federal projects worth at least $35 million. There is also concern about language that could potentially make site visits optional, which would affect contractors' ability to gather critical project information before bidding.
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Full Story: Engineering News-Record (tiered subscription model) |
FieldAI has raised $405 million in two funding rounds, bringing its valuation to $2 billion. The company, which develops physical artificial intelligence for robots, plans to use the funds to accelerate global growth and product development.
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Full Story: Construction Dive |
Transportation Secretary Sean Duffy has proposed a policy to keep wind turbines at least 1.2 miles from railroads and highways, citing potential interference with railroad radio communication. The proposal, based on a single consultant report, has been criticized by the wind industry and experts as unnecessary and lacking evidence. The American Clean Power Association and the American Council on Renewable Energy argue that the policy is federal overreach and could hinder renewable energy development.
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Full Story: E&E News |
The Federal Railroad Administration has canceled four grants totaling $176 million for projects related to the California High-Speed Rail project, citing concerns over cost and progress. The canceled grants include $89.6 million for the Le Grand Road Overcrossing Project and $54.5 million for expanding the Madera train station. The California High-Speed Rail Authority has responded by continuing construction on its 171-mile segment and exploring public-private partnerships for funding.
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Full Story: Engineering News-Record (tiered subscription model) |
The California High-Speed Rail Authority has announced an expedited plan to lay the first tracks for the state's high-speed rail project by 2026. The authority will invite US manufacturers to bid on materials for the first electrified track, with a budget of $507 million.
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Full Story: KTLA-TV (Los Angeles) |
San Diego International Airport's new Terminal 1 is set to open on Sept. 22, after nearly three years of construction. The $3.8 billion project features 30 gates, enhanced food and retail options, and a baggage system that can handle 2,000 bags per hour. Only 19 gates will open initially, with the remaining 11 scheduled to open by 2028.
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Full Story: KNSD-TV (San Diego) |
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Ground breaks on levee, floodwall project in Ventura, Calif. |
Ventura, Calif., has broken ground on a $51 million infrastructure project to extend Olivas Park Drive and build 5,400 feet of levees and floodwalls. Mayor Jeanette Sanchez-Palacios says the project, which has been in the works for decades, will improve access, drive economic growth and increase revenue.
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Full Story: KCLU-FM (Thousand Oaks, Calif.) |
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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
