Capitol Update 12.13.2024

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from Mark Smith, Advocate, California Builders Alliance

Judge blocks enforcement of Corporate Transparency Act

A federal judge in Texas has issued a nationwide preliminary injunction against the Corporate Transparency Act, halting enforcement of the requirement for businesses to report beneficial ownership information. Judge Amos Mazzant deemed the act "likely unconstitutional," citing concerns about federal overreach and the end of corporate anonymity. The government has appealed the decision.

Full Story: The Construction Broadsheet 

Job openings rise, layoffs drop in Oct.

The US labor market showed a mixed performance in October with job openings rising by 372,000 to 7.74 million and layoffs dropping by 169,000, the most since April 2023, according to the Labor Department. Hires decreased by 269,000 while resignations increased by 228,000.

Full Story: Reuters  MarketWatch (tiered subscription model)  The Associated Press  

Residential, nonresidential sectors support Nov. job gain

Construction employment increased by 10,000 jobs in November, with gains in both residential and nonresidential sectors, according to an analysis by the Associated General Contractors of America. The average hourly wage for production and nonsupervisory employees rose to $36.22, 18.5% higher than the private sector average.

Full Story: Associated General Contractors of America  

Commercial planning drives drop in Dodge Momentum Index

The Dodge Momentum Index fell 2.3% in November, with commercial planning down 4.6% and institutional planning up 2.5%. "Throughout 2024, we've seen robust growth in nonresidential planning activity -- but labor shortages and high construction costs have prevented those projects from moving through the planning process at a normal pace," says Sarah Martin, associate director of forecasting at Dodge Construction Network. "The current backlog may be constraining demand for commercial planning in the short term."

Full Story: Dodge Data & Analytics  

Report: Despite economic challenges, AEC appears poised for good 2025

The architecture, engineering, and construction industry faces significant challenges as it approaches 2025, with labor shortages, rising material costs and supply chain disruptions emerging as the top three concerns in the industry, complicating efforts to meet growing demand in areas like renewable energy, data centers, and public infrastructure, according to a new SmartBrief report. Despite these hurdles, Ken Simonson, chief economist at the Associated General Contractors of America, notes there are vast opportunities in public infrastructure, renewable energy and reshoring-driven manufacturing projects. Simonson offers a cautiously optimistic outlook for firms prepared to adopt high-tech solutions and address workforce and resource constraints effectively.

Full Story: SmartBrief/Infrastructure (12/10) 

Key events for the entire AEC industry in 2024

The AEC industry faced significant events in 2024, including the collapse of the Francis Scott Key Bridge in Baltimore, which highlighted the need for infrastructure resilience. The National Institute of Standards and Technology continued its investigation into the Surfside condo collapse, and design-build methods gained popularity. The industry also made strides in construction safety and sustainable building, with the International Code Council and the American Concrete Institute releasing new codes. The Infrastructure Investment and Jobs Act marked its third anniversary, funding over 74,000 projects.

Full Story: SmartBrief/Infrastructure  

SmartBrief report: Labor remains top concern in AEC

A new SmartBrief report indicates that 60.3% of architecture, engineering and construction firms identify labor shortages as a top 3 challenge going into 2025, while 43.5% are concerned about rising material costs. Despite these challenges, the report highlights significant growth opportunities in sectors such as renewable energy, data centers, and public infrastructure. Additionally, the report notes that AEC firms are increasingly adopting advanced technologies, with a focus on artificial intelligence and digital tools, to enhance efficiency and address industry challenges.

Full Story: SmartBrief/Infrastructure

Construction well-represented on Newsweek CSR list

Fluor, Autodesk, Trimble, AECOM, Granite Construction and United Rentals are among the construction companies recognized on Newsweek's list of America's Most Responsible Companies, which was compiled with Statista and based on key performance indicators and corporate social responsibility reputation. The list highlights companies excelling in social, environmental and governance areas.

Full Story: Construction Briefing  Newsweek (tiered subscription model)

After 3 years, IIJA's legacy and future are complicated

As the Infrastructure Investment and Jobs Act enters its final two years, $695 billion has funded over 74,000 projects, including road and bridge repairs and lead pipe replacements. Insights from industry leaders highlight mixed progress: the Associated General Contractors of America note protected funding mechanisms ensure stability, yet delays, inflation and workforce shortages slow implementation. The National Utility Contractors Association stresses urgent needs for water infrastructure upgrades and quicker broadband deployment, citing permitting and administrative challenges. Meanwhile, Brookings Institution analysts warn a Trump administration could politicize grant distribution and prioritize traditional projects, threatening Biden-era climate and equity initiatives. With $294 billion unallocated, the law's future depends on balancing competing priorities and sustaining long-term benefits.

Full Story: SmartBrief/Infrastructure  

Mechanical, electrical equipment send cost index up

The Turner Building Cost Index rose 3.6% year over year in the third quarter, driven by localized construction activity and megaprojects, according to Turner Construction. Mechanical and electrical equipment costs have increased due to high demand and longer lead times. The index's rise contrasts with the Bureau of Labor Statistics' data, which showed a 0.5% decrease in nonresidential construction input prices in October.

Full Story: Construction Dive

DPR Construction foresees strong life sciences market

Despite a slowdown in developer-led tenant lab markets, Raj Vora of DPR Construction remains optimistic about the prospects for the life sciences construction market, particularly as demand increases to manufacture weight-loss drugs and compounding pharmacies. Vora has noticed the sector's shift from design-bid-build to design-build and EPCM delivery models.

Full Story: Construction Dive  

Investment in built world tech nears $24B for 2024

Global investment in built world technology is projected to reach $24 billion in 2024, according to the State of Built World Tech report from Noa. The report highlights significant growth in industrial automation, electrification and robotics, with industrial automation investment rising 61% and building operations robotics surging 895%.

Full Story: Construction Briefing 

Caterpillar invites entrants to Global Operator Challenge

Caterpillar is set to begin its third annual Global Operator Challenge in January to find the world's best heavy equipment operators. The competition starts at local Cat dealers and progresses to regional semifinals, with nine finalists competing at ConExpo-Con/Agg 2026. The challenge will expand to more than 40 countries, with participants tested on skills, safety and efficiency.

Full Story: Equipment World

Winter, holidays can exacerbate mental health issues

The holiday season can exacerbate mental health issues, particularly in the construction industry, where stigma can hinder seeking help. Darcy Gruttadaro of the National Alliance on Mental Illness notes that financial stress, grief and the slow work season contribute to anxiety and depression. Employers can support workers by promoting mental health benefits, encouraging open dialogue and fostering a supportive work environment.

Full Story: Construction Business Owner  

EPA touts year of enforcement, compliance

The Environmental Protection Agency's annual report on enforcement and compliance assurance notes that in 2024, the agency concluded more than 1,800 civil cases, charged more than 120 criminal defendants and helped reduce more than 225 million pounds of pollution. The EPA's Climate Enforcement and Compliance Strategy has been particularly effective, focusing on reducing methane and hydrofluorocarbon emissions.

Full Story: Concrete Products  

Interior Dept. to direct more than $849M to Western water

The Interior Department has announced more than $849 million in federal infrastructure law funding for 77 water projects in Western states. The projects, managed by the Bureau of Reclamation, include canal restoration, water treatment, hydropower equipment replacement and safety enhancements. About $118 million of the total will benefit projects in the Colorado River Basin where drought conditions are an ongoing concern.

Full Story: The Construction Broadsheet 

WRDA ready for Senate discussion

The Senate is expected to consider the Thomas R. Carper Water Resources Development Act after the House passed it 399-18. The bipartisan bill aims to address flooding, improve ports and support ecosystem restoration. It would authorize various projects and direct the Army Corps of Engineers to implement major policy changes.

Full Story: E&E News  

Turner tops out $345M mixed-use project in Calif.

Turner Construction has topped out the $345 million 222 North City project in San Marcos, Calif., part of the $2 billion North City master-planned community. The Safdie Rabines Architects-designed project will feature two 12-story towers, 460 residential units and 20,000 square feet of retail, with completion expected in late 2025.

Full Story: The Construction Broadsheet  

Calif. begins Lake Perris emergency release project

The California Department of Water Resources has started the Lake Perris Emergency Release Facility project in Riverside County to modernize infrastructure and ensure public safety during emergencies such as earthquakes. The project, part of the Perris Dam Modernization Program, includes the construction of levees, bridges and a drainage system.

Full Story: Newsweek (tiered subscription model) Underground Infrastructure  

Balfour to serve as CMAR for Calif. stormwater project

Balfour Beatty has secured a $60 million construction management at-risk contract to deliver an underground infiltration gallery beneath a high school in La Puente, Calif. The project, which should wrap up in 2029, will help capture and treat stormwater to protect San Gabriel River watershed.

Full Story: Global Construction Review (UK)  

Construction starts in Jan. on Calif.-Mexico border entry

California Gov. Gavin Newsom has announced the construction will begin next month on a new port of entry at the California-Mexico border near San Diego, with work set to begin in January 2025 and completion expected by December 2027. The Otay Mesa East Port of Entry will support growing international trade, reduce wait times and enhance public safety, Newsom says.

Full Story: Spectrum News  

---------------------------------------------------

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
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