from Mark Smith, Advocate, California Builders Alliance
Nonresidential planning anchors 5.6% rise in Dodge index
The Dodge Momentum Index rose 5.6% in January, driven by a 4.2% increase in commercial planning and an 8.7% rise in institutional planning, with data centers, offices, warehouses, education and health care leading growth. Major projects entering planning included a $500 million Amazon Data Center in Ohio and a $407 million Memorial Hospital expansion in Colorado, reflecting strong momentum despite ongoing labor shortages and construction cost concerns. Full Story: Dodge Data & Analytics
FMI: Construction spending to slow, but grow, through 2028
Construction and engineering spending is expected to grow at a slower pace of 2% to 3% annually through 2028 after expanding more than 40% since 2020, according to FMI. The forecast anticipates a recession in 2025 and highlights the impact of legislation such as the Infrastructure Investment and Jobs Act. Key trends include the rise of data centers, sustainability efforts, labor challenges and digital transformation. Full Story: Building Design+Construction
4,000 construction jobs added in January
The US construction sector added just 4,000 jobs in January, continuing a trend of slowed hiring, according to the Bureau of Labor Statistics. Specialty trade contractors added 3,500 jobs, while heavy and civil engineering saw a decline of 2,300 positions. Nearly 80% of firms surveyed by the Associated General Contractors of America report difficulty finding workers and some workers are not showing up due to fears of increased immigration enforcement. AGC CEO Jeffrey Shoaf urges federal investment in construction training and work authorization programs to meet demand.
Full Story: Engineering News-Record (tiered subscription model)
Skanska reports record backlog, strong US demand in 2024
Skanska reported strong financial results for 2024, driven by US infrastructure and data center projects. Revenue rose 13% to $17.3 billion, and operating income increased 121% to $687 million. The order backlog reached a record high, with US bookings up 25%. The company plans to focus on office development, life sciences and rental housing in 2025. Full Story: Construction Briefing
OSHA won't be abolished, but Trump could reshape it
Experts say a bill to abolish OSHA has virtually no chance of passing, but the agency could still face significant changes under the Trump administration, including paused rulemaking and workforce reductions. Policies such as halting the implementation of OSHA's heat injury and illness standard and requiring agencies to repeal 10 regulations for every new one introduced signal a shift toward deregulation, while efforts to cut staff and enforce in-office work may reshape OSHA's operations and enforcement capabilities. Full Story: Construction Dive
Trump imposes 25% tariffs on steel, aluminum
President Donald Trump has announced 25% tariffs on steel and aluminum imports, reversing exemptions for allies such as Canada and Mexico. The tariffs, effective March 4, aim to counter foreign subsidies and make US products more competitive Full Story: The Wall Street Journal Reuters
Material costs rise at the fastest monthly pace in 2 years
Construction input prices surged 1.4% in January, the largest increase in two years, driven by rising energy costs and a rush to purchase materials ahead of potential tariffs. The Associated General Contractors of America notes that the threat of new steel and aluminum tariffs has significantly impacted material costs, posing challenges for contractors with fixed-price projects. Full Story: Construction Dive
Economists, Investors Dialing Down Expectations For Rate Cuts This Year
The AP reports that the “odds of further interest rate cuts this year by the Federal Reserve dwindled last week as unemployment fell and more officials say they want to see how new policies from the White House affect the economy. While Fed officials penciled in two rate cuts this year at their December meeting, economists and Wall Street investors are increasingly skeptical, with some predicting no reductions at all this year.” The AP reports that the “shifting expectations come as Chair Jerome Powell heads to Capitol Hill for two days of testimony this week, beginning Tuesday, before House and Senate committees that oversee the central bank and the financial industry.”
US inflation data to test Fed's rate stance
US consumer price index data for January is expected to show a slight slowdown in inflation, with core inflation forecast at 3.1% year over year, down from 3.2% in December. The Federal Reserve is unlikely to rush into an interest rate cut based on this data, although futures markets indicate an 80% chance of a quarter-point cut by July.
Short-term inflation expectations rise amid tariffs
Short-term inflation expectations have surged following President Donald Trump's announcement of tariffs on steel and aluminum imports. The five-year breakeven rate has reached 2.64%, 27 basis points higher than the 30-year gauge -- marking the widest gap in two years. Full Story: Bloomberg
DOD directs contracting offers to remove PLA requirements
The Department of Defense has issued a memorandum directing contracting officers to amend solicitations by removing project labor agreement requirements, including any related solicitation provisions and contract clauses. The Associated General Contractors of America praised the decision, which follows a bid protest strategy AGC crafted to challenge the requirement. AGC CEO Jeffrey Shoaf emphasized that the move validates their legal approach and called on all federal agencies to eliminate similar mandates, while also urging the Trump administration to formally revoke the executive order and Federal Acquisition Regulation rules enforcing PLAs. Full Story: Associated General Contractors of America
AGC optimistic about Russell Vought's return to OMB
The Senate has confirmed Russell Vought as director of the Office of Management and Budget with contractor groups expressing optimism that he will reduce regulatory hurdles for the construction industry. "We have high expectations for [Vought], and certainly hope that he will focus on the deregulatory agenda of the president and not get distracted by some of the culture wars that could consume a lot of oxygen in this town" says Brian Turmail, vice president of public affairs and workforce at the Associated General Contractors of America. Full Story: Engineering News-Record (tiered subscription model)
Green building may fall to states without Trump support
Maryland lawmakers have introduced the Better Buildings Act to update building performance standards to maximize energy efficiency and reduce fossil fuel use. The bill requires new buildings to be electric- and solar-ready, with the state's Department of Labor adopting the 2018 International Green Construction Code. However, at the federal level, the Trump administration appears to have killed canceled the Green Proving Ground program, a federal initiative that tested emerging technologies, such as low-carbon concrete, bidirectional electric vehicle charging infrastructure, vacuum-insulated windows and heat pumps that leverage carbon capture. Full Story: WJZ-TV (Baltimore)
Permit reform, safety, cost savings top DOT priorities
Recently appointed Transportation Secretary Sean Duffy emphasized overhauling environmental permitting, adopting emerging safety technologies, and granting states more autonomy as key priorities in federal highway legislation. His agenda aligns with the Trump administration's focus on streamlining regulations, accelerating project timelines and saving costs. Full Story: Transport Topics
3 design trends worth following in 2025
Clark Lowe, president and CEO of O'Connor Company, highlights three major construction design trends for 2025: The rise of industrial-style construction, the repurposing of existing buildings and the increasing popularity of smaller, eco-friendly homes. These trends reflect growing environmental awareness and technological integration in construction, with sustainability, adaptive reuse and energy-efficient design shaping the industry's future. Full Story: For Construction Pros
Journey to autonomous equipment is long, but worth it
A new video from Trimble's offsite expo offers a look at some of the work that is possible with an autonomous excavator and an autonomous soil compactor. The journey to autonomy will be "longer than everyone thought ... at the start," but it's still very important to invest in the development in autonomous technologies because the lessons gleaned from R&D will eventually be useful for manual machines, says Geoffrey Kirk, product manager at Trimble. Full Story: For Construction Pros
$12B Vegas-to-SoCal rail project inches closer to start
The Nevada Department of Transportation is awaiting Brightline West's finalization of financing and design-build contractor agreements before construction begins on a $12 billion high-speed rail project between Las Vegas and Southern California. Brightline is negotiating contracts for nine project segments, each awarded separately to bring in specialized expertise and manage risk, ensuring flexibility if issues arise with any individual contractor. Full Story: Las Vegas Review-Journal (tiered subscription model)
PCL, Stantec picked for $121M biogas project in Calif.
The San Francisco Public Utilities Commission has awarded a $121 million fixed price design-build contract for the Southeast Treatment Plant Biogas Utilization Project to PCL Construction, with Stantec serving as lead designer. Full-scale design is underway, and PCL expects to complete the project in early 2027. Full Story: Construction Dive
Skanska substantially completes I-40 bridge in Calif.
Skanska has reached substantial completion on the $19.8 million Essex Road Bridge replacement in San Bernardino County, Calif. The project, which began in May 2023, involved demolishing existing structures and building two seven-span bridges on Interstate 40 over Halfway Hills Wash, enhancing road safety and drainage. Full Story: Global Construction Review (UK)
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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
