from Mark Smith, Advocate, California Builders Alliance
How public contractors can navigate the new Trump era
As the Trump administration continues to reshape the landscape for public construction, contractors should prepare for reduced federal funding in areas like renewable energy, higher education and transit, while expecting an increase in outsourcing due to public-sector layoffs. Environmental rollbacks, fewer federal programs and a shift of responsibilities to states will create both disruption and opportunity--especially for firms offering efficiency, U.S.-based operations, and tech solutions with strong cybersecurity. To stay competitive, contractors must prioritize price competitiveness, state-level political awareness and readiness to engage in public-private partnerships with greater ethical and regulatory accountability. Full Story: Construction Dive
Trump revokes Biden's federal contractor wage order
President Donald Trump has rescinded an executive order that increased the minimum wage for federal contractors to $17.75 per hour, reverting the rate to $13.30 under a 2014 order from the Obama administration. The Department of Labor rule supporting former President Joe Biden's order remains technically in place but is unenforceable. Full Story: Jackson Lewis
US gets a C in latest infrastructure report card
The American Society of Civil Engineers' 2025 Infrastructure Report Card gave the US its highest grade ever--a C--highlighting modest but meaningful improvements across sectors like ports, drinking water and broadband, while noting declines in energy and rail. Despite increased funding from the Infrastructure Investment and Jobs Act, the US still faces a $3.7 trillion investment gap and must prioritize long-term resilience, data transparency and consistent funding to close it, ASCE says. Rep. Sam Graves, R-Mo., said the House Transportation and Infrastructure Committee plans to mark up a surface transportation reauthorization bill this fall, but is unsure of the Senate's plans. Full Story: SmartBrief/Infrastructure
Construction employment up in 34 states, D.C.
Construction employment increased in 34 US states and the District of Columbia from January 2024 to January 2025, with Texas and Florida leading the gains, according to an analysis of federal data by the Associated General Contractors of America. California and New York saw the most significant job losses. Meanwhile, the value of construction starts fell 19% year over year in February, with nonresidential building starts down 24% and residential starts down 31%, according to ConstructConnect. Full Story: Construction Citizen
US business activity grows but manufacturing contracts
US economic activity picked up in March, driven by a strong services sector, according to the S&P Global Flash US Composite Purchasing Managers Index, which increased to 53.5 from 51.6 in February. However, manufacturing saw a slight contraction, with its index at 49.8. Inflation pressures intensified, particularly due to anticipated import tariffs and higher labor costs, raising concerns about the economic outlook. Full Story: The Wall Street Journal Quartz
Economist predicts 5.2% rise in construction spending
The US construction industry is expected to see a 5.2% increase in spending this year, driven by easing financial regulations and potential interest rate cuts, according to ConstructConnect. Nonresidential construction spending could grow by 5.7%, while residential spending might rise by 3.6%. "Lower interest rates will function as a first and necessary step in reinvigorating nonresidential construction activity, allowing more nonresidential construction projects to pencil out," says Michael Guckes, chief economist at ConstructConnect. Full Story: ConstructConnect
Material price volatility spikes amid looming tariffs
Contractors are bracing for potential cost spikes as new tariffs--set to take effect April 2--target key construction materials imported from Canada and Mexico, including steel, aluminum and lumber, which are already seeing price hikes of up to 25%. Products most at risk include reinforcing and structural steel, aluminum curtainwall and window systems, piping, ductwork and mechanical and electrical components, prompting firms like Skanska to reassess supply chains and advise clients on cost-effective alternatives to mitigate financial exposure. Full Story: Construction Dive
Municipal bonds could bridge infrastructure investment gap
As the US faces a $3.7 trillion infrastructure shortfall, municipal bond experts are warning that efforts to eliminate the tax-exempt status of munis could derail critical investments. Despite a slight improvement to a "C" grade in the American Society of Civil Engineers' latest Infrastructure Report Card, core sectors like transit, roads and water systems remain underfunded--many of them reliant on muni financing. With 2024 seeing record municipal bond issuance and 2025 on track to beat it, industry leaders argue that the muni market remains the most efficient tool to fund long-term infrastructure projects and should be preserved to bridge the nation's widening investment gap. Full Story: The Bond Buyer
Multifamily demand forecast to drop after record absorption
A Northmarq report predicts moderation in the absorption of rental units in 2025, following an exceptional performance in 2024, when absorption significantly outpaced forecasts. The report notes that renter demand soared in most major metropolitan areas last year, offsetting much of the new construction delivered. While economic growth might sustain 2024's absorption levels, Northmarq expects a more likely scenario of about 300,000 units of net absorption this year, still above the historical average of 200,000 units per year. Full Story: GlobeSt (free registration)
What to expect from efforts to update WOTUS
The Environmental Protection Agency is preparing to update the definition of Waters of the US under the Clean Water Act in a push to reduce costs and streamline regulatory work, but it's still relatively unclear what the final definition will look like. The EPA is gathering feedback from stakeholders and will consider key terms such as what it means for a body of water to have a "continuous surface connection" to navigable waters. Full Story: Waste Dive
USACE to share new list for fast-track approval
The US Army Corps of Engineers is set to finalize a revised list of energy projects eligible for fast-tracking under President Donald Trump's national energy emergency declaration. The update may be available as early as next week. The initial list, posted in February, included over 600 projects but was removed due to errors like including completed projects. Full Story: Reuters
Poettker Construction says drones boost safety, quality
Poettker Construction has started a drone program to enhance safety, quality and marketing, seeing significant returns on investment and improved data control, says Charles Wilson, vice president of risk management. Logan Decker, who runs the program, noted that while there was initial pushback, the program has quickly gained traction, requiring the development of a scheduling solution to meet demand. Full Story: Construction Dive
W.E. O'Neil marks 100th year with leadership changes
W.E. O'Neil Construction has announced that Brian Ramsay, who was pivotal in the expansion of the 100-year-old company and its transition to full employee ownership, will move from CEO to chairman of the board, and John Finn will take on the CEO role after transitioning from COO and president of the California region. Ramsay has served as CEO since 2014, and Finn has been with the company for two decades and supervised expansion into San Diego and Northern California. Full Story: REJournals
What contractors involved in L.A. rebuild should know
Contractors involved in post-wildfire rebuilding in L.A. should prepare for faster-paced work under streamlined permitting processes, including potential self-certification for compliant plans and consolidated project reviews, experts say. To meet aggressive timelines, contractors will need to coordinate closely with centralized rebuilding logistics centers managing labor, materials and inspections across thousands of homes. Contractors should also monitor insurance reforms and engage with newly proposed community rebuilding authorities, which may offer turnkey project opportunities and financial support mechanisms to accelerate and simplify recovery efforts. Full Story: Los Angeles Times (tiered subscription model)
Caltrans intensifies efforts to clear Yosemite rockslide
Crews with Caltrans and Teichert Construction have made major progress in their efforts to clear a huge rockslide that blocked state Highway 140 on March 17, closing a primary route into Yosemite National Park. The slide disrupted access to the park just as visitor numbers were expected to rise with warmer weather, and Caltrans said it expects to reopen at least one lane by the end of the week. Full Story: San Jose Mercury News (Calif.) (tiered subscription model)
Calif. tribe marks milestone in $1B casino expansion
The Federated Indians of Graton Rancheria have celebrated a major milestone in their $1 billion expansion of Graton Resort and Casino in Rohnert Park, Calif., with a topping-off ceremony on Wednesday. The expansion includes more gaming space, 2,000 slot machines, 200 hotel rooms, a concert theater and retail shops, as well as a parking structure that opened in August, and comes amid challenges from rival casino projects and changes in federal tribal policies. Full Story: The Press Democrat (Santa Rosa, Calif.)
Economic factors derail Calif. light-rail extension bid
The Metro Gold Line Foothill Extension Construction Authority has rejected the lone bid for a light-rail extension from Pomona, Calif., to San Bernardino County because the $994 million bid was $350 million over budget, driven by factors such as inflation, rising labor costs and tariffs. The authority plans to split future bids into design and construction phases to reduce costs, pushing the completion date to 2031. Full Story: The Press-Enterprise (Riverside, Calif.) (tiered subscription model)
LA Metro approves 12.4-mile bus rapid transit project
The LA Metro board has given the green light for design and construction of a Bus Rapid Transit project that will stretch for over 12 miles and feature 26 stations at 13 locations along Vermont Avenue. The project includes turning portions of the right lanes into bus-only lanes to enhance speed along the route, which will run through major areas such as East Hollywood, Koreatown, and South Los Angeles, connecting with the Vermont/Sunset Metro B Line subway station. Full Story: Daily Breeze (Torrance, Calif.)
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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
