from Mark Smith, Advocate, California Builders Alliance
Construction employment increased in 32 states and Washington, D.C., from November 2024 to November 2025, with Texas and Iowa seeing the largest gains, according to the Associated General Contractors of America. However, 18 states saw job losses, with New York and New Jersey experiencing the most significant year over year declines.
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Full Story: Associated General Contractors of America |
Contractors have "dampened" expectations across the commercial construction industry this year, with five of 17 market segments now showing negative outlooks compared to just two a year ago, though data centers (57% net positive) and power projects (34% net positive) remain strong, according to a new survey from the Associated General Contractors of America and Sage. Despite 63% of firms planning to increase headcount in 2026, more than 80% report difficulty finding qualified workers, while 70% of contractors have been affected by tariffs and 63% report that projects have been postponed or canceled in the past six months due to funding uncertainties and rising costs. Economic slowdown or recession emerged as contractors' top concern for 2026, cited by 62% of firms, alongside persistent workforce shortages, rising labor costs and materials price volatility that are complicating project planning and execution.
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Full Story: Associated General Contractors of America |
Dodge Construction Network and ConstructConnect reported mixed patterns for construction starts in November. Dodge noted a 20.5% drop in total construction starts from October, with nonresidential building starts falling 13.4% and residential starts rising 13.3%. ConstructConnect reported a 1% year-over-year increase in construction starts for November, with nonresidential building starts up 5.2% and residential starts down 3.7%. Input costs for construction varied, with copper and steel prices rising significantly, while diesel prices remained stable.
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Full Story: Construction Citizen |
The 2025 State of Our Schools report identifies a $90 billion funding gap in US PK-12 school facility construction, maintenance and modernization. Despite local districts increasing their annual infrastructure spending from $95 billion in 2016 to more than $150 billion, the shortfall has doubled since 2016 due to factors like rising construction costs and aging buildings demanding more upkeep.
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Full Story: The Construction Broadsheet |
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Spending package aims to avert shutdown, bolster infrastructure |
Congressional appropriators have introduced a bipartisan "mini-bus" spending package to avert a government shutdown on Jan. 30. The package significantly increases funding for the Army Corps of Engineers, the state revolving fund loan program and environmental cleanup programs and reverses proposed cuts by the Trump administration. House Appropriations Committee Chairman Tom Cole, R-Okla., says the package will fund critical community projects and infrastructure investments, and Senate Appropriations Committee Vice Chair Patty Murray, D-Wash., emphasizes the importance of congressional control over spending decisions.
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Full Story: Engineering News-Record (tiered subscription model) |
Yesterday's 2026 outlook survey from the Associated General Contractors of America underscores a familiar tension playing out across the Southeast: Demand remains strong, but uncertainty is rising. In Georgia, builders are bullish on data center and infrastructure work, even as concerns about interest rates and broader economic volatility temper optimism. Meanwhile in Tennessee, especially around Chattanooga, contractors say workforce shortages are being intensified by immigration enforcement, highlighting how labor constraints, and not lack of projects, may be the biggest brake on growth heading into 2026.
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Full Story: The Atlanta Journal-Constitution WTVC-TV (Chattanooga, Tenn.) Chattanooga Times Free Press (Tenn.) (tiered subscription model) |
New York has amended its Paid Family Leave law to include construction workers who work for multiple employers under collective bargaining agreements. Starting Jan. 1, 2027, these workers can aggregate weeks worked across employers to qualify for paid family leave, raising questions about administration and coordination of benefits.
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Full Story: The National Law Review |
Hensel Phelps has appointed Brad Jeanneret as CEO and president, succeeding Mike Choutka, who has become chairman. Jeanneret, who has worked for the company for almost 30 years, was previously president and chief operating officer. The company has also made two key executive promotions: Steve Grauer has advanced to executive vice president and Cole Weaver has been named regional vice president of the southwest region.
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Full Story: Construction Briefing |
Jacobs Solutions has agreed to acquire the remaining stake in London-based PA Consulting for $1.6 billion, a move expected to close in fiscal 2026. The deal will deepen Jacobs' advisory and digital capabilities and aligns with its long-term strategy to support clients across major programs. Jacobs plans to fund the acquisition through cash and debt financing, and PA Consulting will become a wholly owned subsidiary.
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Full Story: Engineering News-Record (tiered subscription model) |
California has dropped a lawsuit against the federal government over the withdrawal of $4 billion in funding for the Central Valley high-speed rail project. Gov. Gavin Newsom called the funding decision illegal and a political stunt. California High-Speed Rail Authority CEO Ian Choudri says the withdrawal will not create a funding gap for the initial phase, but the CHSRA will focus on other funding sources for the full project.
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Full Story: International Railway Journal online (UK) |
Lake Powell's water levels have dropped 36 feet in the past year, forcing engineers to operate within tighter physical constraints at Glen Canyon Dam. As negotiations over post-2026 Colorado River operating rules remain unresolved, the Bureau of Reclamation is planning around these challenges, raising concerns about hydropower generation and infrastructure flexibility. This situation mirrors international responses to prolonged drought, indicating potential for significant long-term capital investments.
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Full Story: Engineering News-Record (tiered subscription model) |
A coalition of construction associations led by the Associated General Contractors of America is opposing the Occupational Safety and Health Administration's proposal to rescind jobsite illumination requirements. The coalition argues that eliminating the rules could lead to insufficient lighting, increasing the risk of workplace accidents such as slips, trips and falls. The coalition's letter to OSHA highlights that the proposal might raise insurance costs and create legal uncertainties, urging the preservation of the existing standards for safety.
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Full Story: Daily Commercial News (Ontario) |
The Trump administration is allocating $2.7 billion to American Centrifuge Operating, General Matter and Orano Federal Services to boost uranium enrichment for nuclear energy. The funding aims to reduce reliance on foreign uranium sources, with Orano focusing on low-enriched uranium and the other two on high-assay low-enriched uranium.
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Full Story: Engineering News-Record (tiered subscription model) |
Caterpillar and Nvidia are expanding their collaboration to develop AI-enhanced products and manufacturing systems. The partnership will use the Nvidia Jetson Thor platform for real-time AI inference on construction, mining and power equipment, enabling AI-driven recommendations and a "digital nervous system" for jobsites.
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Full Story: Construction Briefing |
AI-enabled equipment inspections are reshaping construction site safety and reliability by automating the detection of mechanical issues and streamlining the inspection process. Using mobile devices, operators capture images and audio notes, which AI algorithms then analyze to identify wear, defects or unusual patterns.
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Full Story: For Construction Pros |
Six construction technology startups have collectively raised $124.5 million in funding in the fourth quarter, with AI as a common theme. Notable startups include PermitFlow, which raised $54 million to streamline permitting; Attentive.AI, which secured $30.5 million for preconstruction software; Unlimited Industries, which got $12 million for an AI platform; ConCntric, which raised $10 million for an AI preconstruction platform; Kojo, which received $10 million for materials management; and Planera, which raised $8 million for scheduling software.
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Full Story: Construction Dive |
Skanska and Flatiron have secured an $868 million contract from Los Angeles World Airports for the Airfield and Terminal Modernization Program at Los Angeles International Airport. The project involves reconfiguring nearly four miles of roadway, building and modifying bridges, upgrading traffic signals and deploying advanced traffic monitoring systems. Skanska also has received a $228 million contract for a data center.
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Full Story: 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
