from Mark Smith, Advocate, California Builders Alliance
|
US construction spending rose 0.4% in April from March and 0.9% from April 2025, driven mainly by residential construction and public-sector activity, according to the Census Bureau. Highway construction was a significant contributor to the increase, while private nonresidential spending fell for the seventh consecutive month, with manufacturing spending dropping 1.2% monthly and 18.4% year over year.
Traditional construction sectors, including shopping centers and office projects, are showing early signs of recovery in 2026 after years of lagging behind data centers. Nonresidential construction spending is down just over 2% from last year, an improvement over the more than 4% contraction seen in 2025. However, recovery remains uneven, with warehouse and multifamily projects experiencing slower rebounds, partly due to rising costs. Economists note that as demand for contractors in these traditional sectors increases, it could further strain construction costs.
|
The White House will reduce tariffs on farm and construction equipment to 15% from 25% to strengthen industrial investment through 2027. Foreign companies could qualify for a 10% duty rate if equipment contains at least 85% US steel or aluminum.
|
Full Story: Bloomberg |
Construction employment increased in 53% of US metro areas from April 2025 to April 2026, with Houston and Davenport leading job gains, according to the Associated General Contractors of America. However, Los Angeles experienced the most significant job losses. AGC warns that opposition to data center construction and the potential failure of the highway bill could threaten job growth.
|
Full Story: Associated General Contractors of America |
|
Fed's Beige Book suggests stable employment, rising inflation |
The Federal Reserve's latest Beige Book reveals that employment has remained stable recently while inflation has risen, mainly because of higher energy prices linked to the war in the Middle East. Economic activity has increased at a slight to moderate pace in most districts, but businesses are worried about consumer sentiment.
|
Full Story: Bloomberg Financial Times |
In May, infrastructure faced execution challenges despite record power generation and federal funding. Issues included bureaucratic delays in water funding, grid connection bottlenecks for new power generation, and increasing dangers in highway construction.
|
Full Story: SmartBrief/Infrastructure |
The Department of Justice Antitrust Division has intensified its focus on prosecuting government contractors for procurement fraud, particularly bid rigging, price fixing and market allocation, with the Procurement Collusion Strike Force as a primary tool, opening nearly 200 investigations since 2019. Contractors face significant risks, including jail time, hefty fines, suspension and debarment, as well as private civil litigation, business disruption and reputational harm.
|
Full Story: The National Law Review |
Autodesk has introduced a division to support small business users after research showed many professionals are starting their own businesses. The Autodesk for Small Business division will offer resources such as discounted software bundles to help entrepreneurs and small firms manage their operations more effectively.
|
Full Story: Engineering News-Record (tiered subscription model) |
Autodesk has agreed to acquire MaintainX, a maintenance and operations platform, for $3.6 billion in cash, aiming to expand into the building maintenance and operations sector. The acquisition coincides with the launch of Autodesk Operations Solutions, a division managing facilities and structures. "This data provides the context needed to make AI accurate, actionable, and valuable," says Autodesk CEO Andrew Anagnost.
|
Full Story: Construction Dive |
The global building information modeling software market is expected to increase from $23.5 billion in 2024 to more than $38 billion by 2029, according to Cambashi. Growth will be driven by government mandates, a demand for transparency and a push for productivity, with artificial intelligence presenting both opportunities and challenges for software providers.
|
Full Story: Construction Briefing |
The Federal Aviation Administration is allocating more than $523 million to 332 airport projects in 43 states through the Airport Infrastructure Grant program. Florida is receiving the largest share, with almost $142 million for 41 airport facilities, including Miami International Airport, Fort Lauderdale-Hollywood International Airport and Orlando Sanford International Airport. Other significant allocations include nearly $95.7 million for Texas and $60.5 million for North Carolina.
|
Full Story: The Construction Broadsheet |
The California High-Speed Rail Authority has awarded a contract worth up to $3.5 billion to a joint venture between Kiewit, Stacy Witbeck and Herzog to lay the first tracks for the high-speed rail project. The contract covers track work between Merced and Bakersfield, with the first 22 miles expected to be laid by the end of the year. "Today the conversation changes," says board Chairman Steve Kawa. "Track and system construction is the moment this project truly begins to become a railroad."
|
Full Story: The Fresno Bee (Calif.) (free registration) |
The Riverside Levees Rehabilitation Project in Riverside, Calif., is nearing completion, with the right levee successfully rehabilitated and work on the left side expected to finish this fall. The project, led by the US Army Corps of Engineers Los Angeles District and the Riverside County Flood Control and Water Conservation District, addresses erosion and damage caused by storms in 2010 and 2011. Innovative engineering solutions, such as "launchable stones" for dynamic scour protection, have been implemented to ensure long-term stability. The levees, originally built in the 1950s, protect more than 4,300 structures and $1.5 billion in infrastructure.
|
Full Story: US Army |
The Port of Long Beach is investing $2.4 billion in capital projects over the next decade to accommodate larger ships and increase capacity. A significant project, the Pier G south slip fill, funded by International Transportation Service, involves creating 19 acres of new land and a 3,400-foot continuous wharf. This project, managed by a joint venture of Griffith Co. and The Dutra Group, aims to handle two of the world's largest container ships simultaneously. The Port of Long Beach is aiming to double its overall capacity by 2050.
|
Full Story: Engineering News-Record (tiered subscription model) |
The Foothill Gold Line Construction Authority has awarded a construction management at-risk contract to a joint venture of Skanska USA Civil West California District, Stacy and Witbeck and Herzog Contracting for the 2.3-mile Pomona-to-Claremont A Line extension in the San Gabriel Valley in California. The project will use the construction manager-at-risk delivery method to control costs and allocate risk, with major construction set to begin in late 2027. The project will require relocation of Metrolink and freight tracks within a 100-foot corridor and utility relocation, but funding is secured through a $798 million injection from LA Metro via the state's SB 125 program.
|
Full Story: Engineering News-Record (tiered subscription model) |
----------------------------------------------
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
