from Mark Smith, Advocate, California Builders Alliance
The Dodge Momentum Index rose by 7% to 296.8 in December, driven by a 3.5% increase in commercial planning and a 14.9% increase in institutional planning. The index was up by 37% in 2025 compared with the average in 2024, with data centers, health care and recreational buildings showing notable strength. Notable projects include the Google Data Center Campus in Oklahoma and the Atrium Health Hospital in South Carolina.
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Full Story: Dodge Construction Network |
Construction employment fell by 11,000 jobs in December, reflecting contractor concerns about economic and labor issues, according to the Associated General Contractors of America. Only heavy and civil engineering construction added jobs. "Nonresidential construction employment expanded modestly in 2025 but was held back by unwillingness of many owners to commit to projects in the light of ongoing policy turmoil," says Ken Simonson, chief economist at AGC. "Based on our recent survey, it appears 2026 will also present only limited opportunities for growth."
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Full Story: Associated General Contractors of America |
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Construction costs rise sharply, outpacing contractors' bid prices |
Nonresidential construction costs are climbing at their fastest pace since January 2023, with the producer price index for materials and services up 3.6% year over year as of November, according to an analysis by the Associated General Contractors of America. This surge, driven largely by tariffs on key materials like aluminum and steel, has outstripped the 2.7% rise in contractors' bid prices, squeezing profit margins and making it harder for firms to keep up with expenses.
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Full Story: Associated General Contractors of America |
Merger and acquisition activity in the construction industry surged in 2025, driven by the Infrastructure Investment and Jobs Act and foreign engineering firms seeking to invest in the US, and is expected to continue through 2026, says Sean Auton of Kilpatrick. Sectors such as nuclear energy and data centers are seen as particularly attractive for mergers and acquisitions, with traditional infrastructure projects also playing a significant role.
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Full Story: Construction Dive |
Multifamily housing starts dropped 25.9% in October compared to September and 10.8% year over year, reaching their lowest level since 2020, according to the Census Bureau and the Department of Housing and Urban Development. Overall housing starts fell 4.6% from September and 7.8% from October 2024. Developers face challenges from high inventory and limited equity, with much available capital being costly preferred equity, says Reece Kimsey of Middleburg Communities.
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Full Story: Construction Dive/Multifamily Dive |
The Project Stress Index from ConstructConnect dropped 18.7% in December, with abandonments falling 27.2% and bid date delays and on-hold activity decreasing by 12% and 10%, respectively. However, abandonments are still 21.1% higher than a year earlier.
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Full Story: ConstructConnect |
The construction sectors in the US and Canada are poised for growth, driven by technological advancements, energy projects and infrastructure investments, writes economist Alex Carrick. However, job growth in construction lagged in 2025, with the US seeing a 0.2% increase and Canada a 0.1% decrease. Housing starts in the US hit post-pandemic lows, while Canada saw regional variations, with declines in Toronto but gains in Montreal and western cities.
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Full Story: ConstructConnect |
Senate Democrats are urging tech giants to support permitting reform amid President Donald Trump's opposition to offshore wind projects, which led to a halt in construction and a pause in bipartisan negotiations. Sen. Sheldon Whitehouse, D-R.I., has called on companies involved in AI and data centers to advocate for fair treatment of energy sources to ensure sufficient power for their operations. The Data Center Coalition and Clean Energy Buyers Association have expressed the importance of permitting reform.
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Full Story: E&E News |
US cities are investing more in bus rapid transit over light rail due to cost and flexibility, according to The Transport Politic. About 94 miles of new transit lines are expected to be completed this year, including a 3.1-mile BRT line in Atlanta, a 9.3-mile arterial rapid transit line in Baton Rouge, La., and a 7.5-mile light rail extension in Seattle.
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Full Story: Smart Cities Dive |
The International Safety Equipment Association is drafting revisions to the ANSI/ISEA Z89.1 standard that would mandate chin straps for both Type I and Type II helmets, introducing a "plus (+)" marking for enhanced impact and shock protection. The update, which could take effect as early as late 2025, aims to improve head protection standards, though it does not yet address rotational forces due to a lack of standardized testing methods. Meanwhile, smart hard hats are set to become more common on construction sites. These helmets, equipped with sensors like those from Quin, can detect falls and impacts, send alerts to emergency contacts and generate actionable data.
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Full Story: Construction Briefing Construction Briefing |
The US construction industry, characterized by fragmentation and thin margins, has been slow to adopt robotics and AI compared to other sectors. However, advances in AI and robotics are starting to change this trend. AI is being used for project management, design optimization and routine tasks, while robotics are beginning to automate jobs such as bricklaying and welding. Globally, countries such as Japan and China are leaders in construction automation, demonstrating its potential on large-scale projects.
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Full Story: Forbes (tiered subscription model) |
Labor shortages driving contractors to prioritize interoperable digital platforms, AI-driven workflows and precision technologies as core operational tools rather than optional productivity add-ons, according to a 2025 Trimble Dimensions survey. As retirements accelerate and nearly 500,000 new workers are needed in 2026, contractors are focusing on integrated data ecosystems, agentic AI across design and construction, and expanded reality capture to do more with smaller, better-trained teams.
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Full Story: Construction Briefing |
US lawmakers have introduced the bipartisan CERTAIN Act to overhaul the federal permitting process, aiming to ensure timely and efficient project approvals amid rising energy demand and costs. The bill seeks to provide permit certainty for all energy projects by setting clear timelines for federal agencies and safeguarding permits from political interference.
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Full Story: Daily Energy Insider |
The Environmental Protection Agency has introduced a proposed rule aimed at restricting the authority of states and Native American tribes to block major projects, such as pipelines and data centers, over water quality concerns. The agency asserts the new proposal will streamline reviews under Section 401 of the Clean Water Act, providing clearer requirements for applicants and stricter review deadlines. The final rule, set for release after public comment, is expected to clarify the review process.
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Full Story: The Associated Press |
Turner Construction is expanding First Equipment Company, its in-house equipment rental and site services business, to support projects and trade contractors across the US. The move aims to streamline equipment management and improve productivity by centralizing services such as heavy machinery, temporary power and site accommodations.
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Full Story: Construction Briefing |
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Caterpillar names Shurman as Construction Industries president |
Caterpillar has announced that Tony Fassino, group president of Construction Industries, will retire May 31 after 30 years with the company. Rod Shurman, currently senior vice president of Caterpillar's Building Construction Products division, will succeed Fassino as group president of Construction Industries, overseeing segments such as Earthmoving, Excavation and Caterpillar Rental and Used.
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Full Story: Construction Briefing |
Organizations often meet OSHA's Hazard Communication requirements on paper, but a gap in real-world application persists, writes Naba Rizwan. This gap leads to chemical incidents, improper PPE use and delayed emergency responses because workers struggle to interpret Safety Data Sheets and apply hazard information effectively.
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Full Story: Occupational Health & Safety |
Brightline West's high-speed rail project linking Las Vegas and Southern California is now scheduled for completion by late 2029. The 218-mile line, costing at least $12 billion, will run in the median of Interstate 15. Construction on the Las Vegas station is progressing, and Brightline is in the civil construction phase. The project has received $3 billion in federal funding.
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Full Story: KVVU-TV (Las Vegas) |
Granite Construction has secured a $66 million contract from the California Department of Transportation to widen State Route 49 in Nevada County. The project will expand the road to four lanes with a center turn lane, enhancing safety and traffic flow. Granite will also add a truck climbing lane, improve drainage and construct a wildlife crossing.
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Full Story: Construction Briefing |
A 90-mile stretch of California's Highway 1 along the Big Sur coast has reopened three months ahead of schedule after three years of closures due to landslides and a roadway collapse. The reopening is expected to boost tourism and local businesses, which have suffered from reduced access. "We're hitting the light at the end of the tunnel after three long years," says Colin Twohig, general manager of the Big Sur River Inn.
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Full Story: The San Diego Union-Tribune (tiered subscription model) |
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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
