from Mark Smith, Advocate, California Builders Alliance
President Donald Trump delivered a State of the Union address that focused on economic achievements as well as the challenges posed by a recent Supreme Court ruling on tariffs. Trump defended his tariff policy, said the economy is improving, and noted that costs for goods are declining. He also addressed immigration, urged Congress to pass voter ID laws, and discussed negotiations with Iran.
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Full Story: Barron's The Wall Street Journal Reuters |
US President Donald Trump imposed a new 15% global tariff under Section 122 of the 1974 Trade Act after the Supreme Court struck down much of his prior tariff regime, replacing a 10% levy announced a day earlier. The measure, which can last up to 150 days without congressional approval, applies broadly with existing exemptions and does not stack on Section 232 tariffs, while the administration considers longer-term actions under other trade laws.
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Full Story: The Wall Street Journal The New York Times |
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Fed's Bostic warns of potential rate hike amid inflation concerns |
Atlanta Federal Reserve President Raphael Bostic has warned that the central bank might need to consider raising interest rates if inflation shows signs of increasing again, noting that "mildly restrictive" policy should remain. "If it starts to move in the opposite direction again, which it hasn't for several years, that would be super concerning and, for me, you'd have to have hikes on the table," Bostic says.
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Full Story: Reuters |
Construction starts increased 0.7% in January to a seasonally adjusted annual total of $1.24 trillion, according to Dodge Construction Network. Nonbuilding construction, driven by three major projects, rose 24.3%, while nonresidential building and residential starts fell 15.4% and 6.4%, respectively. "Nonbuilding construction remained the primary engine of growth in the first month of 2026," says Eric Gaus, chief economist at DCN. "Three mega projects in the nonbuilding sector accounted for nearly $20 billion or almost half of the growth in January, which would mean total construction would have been negative without those three projects."
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Full Story: Dodge Construction Network |
Multifamily housing starts in the US reached their highest level of 2025 in December, rising 10.1% from November, although they declined 1% year over year. Overall housing starts increased 6.2% from November but fell 7.3% from a year ago. Completions of multifamily projects decreased 15.9% from December 2024, while the number of units under construction dropped 12.9%. KPMG economist Matthew Nestler notes that builders face rising construction costs and economic uncertainty, predicting weak residential investment in 2026.
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Full Story: Construction Dive |
The Project Stress Index from ConstructConnect indicates a slight increase in construction stress in January, primarily because of more projects being put on hold and experiencing bid date delays. However, the index is 11.6% lower than last year, with a significant decrease in project abandonment. "Recent rate cuts could help continue keeping stress conditions low in 2026 as firms are able to access loans on more favorable terms," says ConstructConnect associate economist Devin Bell.
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Full Story: Construction Dive |
The Interior Department has finalized a rule that rescinds over 80% of its National Environmental Policy Act implementation regulations and transfers most remaining provisions to a consolidated internal handbook intended to simplify project reviews. The update scales back some public participation requirements, including removing Federal Register notices for certain environmental assessments, while formalizing lead agency designations and coordination among federal, state, local and tribal entities. "We are cutting unnecessary bureaucracy, speeding up approvals, and putting Americans back to work, while enforcing NEPA as Congress originally intended," said Interior Secretary Doug Burgum.
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Full Story: E&E News |
The court's decision to vacate the Department of Transportation's suspension of NEVI funds has reignited industry concerns about the stability and predictability of federally authorized infrastructure dollars. While the immediate restoration of obligation authority in states like Texas offers short-term clarity, the underlying legal debates and ongoing litigation signal broader uncertainties. Contractors and public agencies remain focused less on EV policy and more on whether multiyear capital programming and reimbursement flows can remain insulated from executive pauses, with the outcome likely to influence procurement and project planning across the IIJA's lifespan.
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Full Story: Engineering News-Record (tiered subscription model) |
Construction employment increased by 33,000 jobs in January, marking the second-largest monthly gain in more than two years, despite volatility in employment figures stemming from a government shutdown in 2025. Wages in the construction sector have continued to rise, with average hourly wages reaching $40.55 and average weekly pay increasing nearly 5% to $1,590.
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Full Story: ConstructConnect |
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The Associated General Contractors of America have launched a campaign called America's Moving Forward to advocate for federal highway and transit funding as the Surface Transportation Bill's expiration approaches. The campaign highlights the economic benefits of improved transportation infrastructure, noting significant job growth in major metro areas due to federal and state investments.
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Data center construction is at an "inflection point," driven by growing demand for AI, according to JLL. Nearly two-thirds of the 35-gigawatt construction pipeline is outside mature markets such as Virginia, JLL notes.
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Full Story: CNBC |
Turner Construction drove a 19.7% sales increase for parent company ACS in 2025, with ACS reporting sales of €49.8 billion, fueled by a surge in high-tech contracts, particularly data centers, in the US. Sales in North America rose 23.1% to €31.2 billion, making it the largest region for ACS, and sales in Europe grew 30.6% to €7.6 billion.
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Full Story: Construction Briefing |
Balfour Beatty has announced that Phil Harrison will step down as chief financial officer after more than 10 years in the role. Myles Westcott, currently group financial controller at BAE Systems, will succeed Harrison. Harrison will remain a director and adviser for four months to help ensure a smooth transition.
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Full Story: Morningstar |
Intuit has introduced an AI-powered edition of its Enterprise Suite tailored for the construction industry, aiming to streamline project management, financial oversight and operational tasks. The suite features a Project Management Agent, real-time AI-driven insights and a proposal document builder.
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Full Story: Small Business Trends |
Concrete and masonry structures, particularly foundations, often retain their integrity after severe fire exposure, contrary to the common misconception of total loss, writes Stanley Stoll. Concrete's gradual structural degradation depends on the intensity and duration of heat, with typical structure fires reaching temperatures that can damage concrete. However, foundations, usually below grade and insulated, often remain unaffected. Assessing fire-damaged foundations involves visual inspection, damage mapping, material testing and load-bearing analysis. Retaining or repairing foundations can significantly reduce rebuilding costs and timelines, emphasizing the importance of a thorough evaluation before deciding on demolition.
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Full Story: For Construction Pros |
Caterpillar has introduced Cat Rentals as the new brand for its dealers' rental activities, replacing the Cat Rental Store name. The rebranding comes with enhanced digital tools to improve customer experience, including a new website, catrentals.com, for easier equipment rental and management. "It's all about making the rental process easier and offering better visibility, so Cat Rentals digital tools can help our customers meet their toughest challenges more efficiently," says Phil Kelliher, senior vice president of Cat Rental 26 Used.
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Full Story: Construction Briefing |
Brightline West has begun field work in Southern California for its high-speed rail project that will connect Las Vegas to Rancho Cucamonga, Calif. The 218-mile, all-electric rail system is expected to reach speeds of up to 200 mph, and construction and field testing are underway in Las Vegas and along Interstate 15. The start date for passenger service has been pushed back to late 2029.
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Full Story: Daily Press (Victorville, Calif.) |
Harbor-UCLA Medical Center in Torrance, Calif., is undergoing a $1.8 billion reconstruction, the largest health care capital improvement in Los Angeles County's history. The project, led by Hensel Phelps, HMC Architects and CO Architects, includes a nine-story hospital building, a six-story clinic building, a new parking structure, a laboratory and a support services building. The reconstruction aims to enhance the medical center's capabilities and integrate with the existing campus while ensuring uninterrupted hospital operations.
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Full Story: Engineering News-Record (tiered subscription model) |
Sen. Alex Padilla, D-Calif., has secured more than $60 million in federal funding for six projects along California's Central Coast, including $54 million for the Pajaro River Flood Risk Management Project to reconstruct levees and enhance flood protection for Watsonville and Pajaro. The funding comes after the Trump administration's Army Corps of Engineers work plan redirected funds from California waterway projects to red states.
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Full Story: Edhat (Santa Barbara, Calif.) |
Los Angeles is experiencing a construction boom, driven by preparations for the 2028 Olympics, with projects in hospitality, transportation, and public works. PENTA Group's Paul Dutmer notes strong revenue growth and a healthy backlog, but warns of potential challenges such as labor availability and cost escalation. Major projects include the Los Angeles County Puente Hills Regional Landfill Park. Construction starts are expected to exceed $30 billion this year, up 15% from 2025.
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Full Story: Engineering News-Record (tiered subscription model) |
The Port of Los Angeles has begun construction on the $152 million Avalon Pedestrian Bridge and Promenade Gateway project, which aims to transform 12 acres of industrial land into green space. The 380-foot bridge will provide a safe crossing over rail operations and connect to the Wilmington Waterfront Promenade.
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Full Story: Patch/Los Angeles |
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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
