Capitol Update 01.30.2026

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from Mark Smith, Advocate, California Builders Alliance

Q&A: Quiet confidence goes a long way in construction

Barbara Res emphasizes the importance of quiet self-confidence and group integration as key leadership traits for women in construction. She advises women to focus on their abilities and participation in industry associations, rather than seeking recognition, noting that standing out is often inevitable for women in male-dominated fields. Res believes that being seen as part of the team and demonstrating inner confidence are essential aspects of effective leadership.

Full Story: Engineering News-Record (tiered subscription model)

 

 

Materials costs are rising again, led by copper, electrical

Construction input prices have started to rise again after nearly three years of stability, with copper and electrical components showing the largest increases, according to Gordian. While steel prices have remained relatively stable, concrete prices have been rising, and this trend might continue in 2026.

Full Story: Construction Dive

 

 

Construction starts up 2.6% in December, led by nonbuilding

Total construction starts rose 2.6% in December to a seasonally adjusted annual rate of $1.24 trillion, driven by a 16.3% increase in nonbuilding starts and a 1% rise in residential starts, according to Dodge Construction Network. Nonresidential building starts fell by 6.6%. For 2025, total construction starts grew 5.4%, with nonbuilding up 18.7%, nonresidential up 4.5%, and residential down 4.8%.

Full Story: Dodge Construction Network

 

 

December nonresidential construction starts hit $61.8B

Nonresidential construction starts reached $61.8 billion in December, up from $57.1 billion in November, driven by data centers, sports and convention centers, and schools, according to ConstructConnect. "That month-on-month growth was driven by strong performance in key sectors, including data centers, sports and convention centers, and schools," says Michael Guckes, chief economist at ConstructConnect.

Full Story: ConstructConnect

 

 

Construction employment sees mixed results across states

Construction employment rose year over year in 34 states and Washington, D.C., in December, but the numbers were flat in Maine and fell in 15 states, according to the Bureau of Labor Statistics. "Too many projects have been postponed or cancelled due to lack of funding, financing costs or policy uncertainty about tariffs and immigration enforcement," says Ken Simonson, chief economist at the Associated General Contractors of America.

Full Story: Engineering News-Record (tiered subscription model)

 

 

Hotel conversions flourish as construction pipeline dips

The US hotel construction pipeline declined in Q4 2025, with 6,146 projects and 720,089 rooms, according to Lodging Econometrics. However, brand conversions reached a record high, with projects up 12% year over year and rooms up 16%. Dallas led the nation in hotel construction, with 193 projects and 23,720 rooms, followed by Atlanta and Phoenix. The report projects continued growth, with 708 new hotels expected to open in 2026.

Full Story: Construction Dive

 

 

Office leasing hits post-pandemic high

Office leasing in the US reached a post-pandemic high in Q4, driven by a rise in return-to-office policies and long-term workplace strategies, according to JLL. Almost all Fortune 100 employees are under hybrid or in-office requirements, and annual leasing volume rose 5.2% to 207 million square feet, with Q4 transactions hitting 55.1 million square feet. Office supply has reached record lows, with construction 20% below historic averages, and growth has been strongest in large markets.

Full Story: Facilities Dive

 

 

Agentic AI is showing its value to contractors

Construction companies are increasingly turning to AI agents to simplify project management and address a projected 41% retirement rate by 2031. Procore Technologies has introduced AI tools for tasks such as safety analysis and document management. Other companies such as Autodesk and Trimble are also integrating AI to improve efficiency.

Full Story: The Wall Street Journal

 

 

John Deere to move excavator manufacturing to US

John Deere plans to move excavator manufacturing from Japan to the US, with a distribution center in Indiana and a factory in North Carolina, creating more than 300 jobs. "Our investment in these new facilities underscores John Deere's dedication to strengthening the backbone of American industry and supporting local economies," Chairman and CEO John May says.

Full Story: Construction Briefing

 

 

Q&A: How Granite beat the CMMC compliance deadline

Granite has achieved Cybersecurity Maturity Model Certification Level 2 well ahead of the October 2026 deadline, scoring perfectly on all 110 security requirements and 320 assessment objectives. CTO Malcolm Jack says that the process, which began in 2019, was more about people than technology and that collaboration between the IT and federal divisions was crucial.

Full Story: Construction Dive

 

 

Court ruling reopens NEVI funds for EV charging projects

A federal court has lifted the Department of Transportation's freeze on the $5 billion National Electric Vehicle Infrastructure program, allowing states to resume stalled EV charging corridor projects. The Associated General Contractors of America noted the ruling was expected, as highway funding withholdings have consistently failed in court, though the impact on construction activity may be limited since USDOT had already renewed NEVI funding last August.

Full Story: Engineering News-Record (tiered subscription model)

 

 

$6.2B Sites Reservoir project gets White House approval

The Trump administration has approved the construction of the $6.2 billion Sites Reservoir in California, which would be the state's largest in 50 years. The reservoir aims to provide water to 24 million people and 500,000 acres of farmland. Environmental groups have raised concerns about its impact on wildlife.

Full Story: The Modesto Bee (Calif.)

 

 

San Francisco revives Central Subway extension to waterfront

San Francisco officials are reconsidering a proposal to extend the Central Subway from Chinatown to North Beach and Fisherman's Wharf. The extension, estimated at $1.6 billion in 2020, faces financial challenges as the San Francisco Municipal Transportation Agency deals with a $430 million budget deficit over the next five years. Residents and business leaders are excited about the potential benefits but are concerned about funding and business disruption during construction.

Full Story: KGO-TV (San Francisco)

 



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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

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