from Mark Smith, Advocate, California Builders Alliance
Architecture Billings Index dips in March
The American Institute of Architects' March Architecture Billings Index fell to 44.1 from 45.5 in February, marking another month of declining demand amid economic uncertainty and Trump-era tariffs. AIA Chief Economist Kermit Baker said firms "are increasingly cautious about starting projects due to uncertainty over future trends in interest rates and building materials costs, as well as the potential for an economic slowdown." Full Story: The Architect's Newspaper
Dodge: March construction starts notch 3% rise
Total US construction starts rose 3% in March to a $1.1 trillion annual rate, driven by gains in nonresidential and nonbuilding sectors despite a drop in residential starts, according to Dodge Construction Network. However, year-to-date figures and analysis signal growing headwinds, with Dodge Chief Economist Eric Gaus saying that "uncertainty around trade policy and the direction of the economy will likely weigh on construction activity." Full Story: Dodge Construction Network
Construction employment up in 31 states, D.C. in March
Construction employment increased in 31 states and the District of Columbia from March 2024 to March 2025, with Texas and New Mexico leading the gains, according to the Associated General Contractors of America. However, California and Washington saw significant job losses. The AGC has urged the Trump administration to expand worker authorization programs to address a shortage of skilled labor. Full Story: Associated General Contractors of America
Volvo CE sees sales dip amid global uncertainty
Volvo Construction Equipment reported an 8% drop in first-quarter net sales, with declines in Europe and North America offsetting growth in South America and Asia. Despite lower machine sales, the company saw increased service revenue and continued investment in zero-emission technology, reflecting long-term industry transformation goals. Full Story: Construction Briefing
Tariff uncertainty stalls some clean energy projects
Developers have canceled billions of dollars in clean energy and battery manufacturing facility projects amid rising uncertainty over trade policies, although some companies are expanding US operations. JCB is doubling its Texas factory, and Novartis plans to invest $23 billion in US facilities. However, electric vehicle and battery manufacturers have canceled more projects in the first quarter of 2025 than in the previous two years combined, citing shifting tariff policies and changes to federal tax credits. Full Story: Construction Dive
Commentary: How contracts can help navigate tariffs
Contractors facing rising costs from shifting tariffs are turning to cost-plus contracts, force majeure clauses and price escalation provisions to manage their risk, write Mason Hester and Austin Moorman, construction attorneys in the Dallas office of law firm Munsch Hardt. While lump sum agreements offer less flexibility, some standard industry contracts could provide legal footing for relief depending on the language, they write. Full Story: Construction Dive
Transportation Dept. dials back support for "road diets"
Many cities have adopted "road diets," which reduce the number of lanes on busy streets to slow traffic and improve safety. However, the Transportation Department, in a reversal of its previous support, said a forthcoming round of road safety grants will look "less favorably" on such projects. The department said reductions in lane capacity "can lead to crashes, erratic maneuvers, and a false sense of security that puts everyone at risk." Full Story: The Associated Press
Trump seeks overhaul of federal procurement
President Donald Trump has issued executive orders to streamline federal procurement by cutting outdated rules and prioritizing commercial products. AGC's Spencer Phillips, counsel for the group's regulation and litigation advocacy, is "cautiously optimistic" about the move, supporting reforms that may eliminate burdensome mandates like project labor agreements, adding that AGC is "in support of reform on the procurement side of things." Full Story: Engineering News-Record (tiered subscription model)
Trump order aimed at streamlining environmental permits
A new executive order from President Donald Trump aims to accelerate environmental permitting by improving digital processes and agency coordination, although experts note the order doesn't directly address federal land issues. The administration has also added 10 critical mineral projects to the federal FAST-41 permitting dashboard to accelerate domestic production of lithium, copper and other strategic resources. Full Story: Light Reading NTD Television (New York City)
Target CO2 rule repealed by FHWA
The Federal Highway Administration has repealed a rule requiring state DOTs and MPOs to set declining CO2 targets, citing court rulings that found the measure exceeded statutory authority. Effective on May 19, the repeal is aimed at a rule that "would have imposed costs with no predictable level of benefits and without clear legal authority" but does not "prohibit State DOTs and MPOs from choosing voluntarily to measure and assess CO2 on the [National Highway System] or other roads." Full Story: Federal Register
DOI to roll out fast-track energy project reviews
The Department of the Interior is implementing a fast-tracking initiative to significantly reduce the time required for environmental reviews of energy projects on federal lands. This strategy aims to complete assessments in less than a month, offering an alternative to the lengthy National Environmental Policy Act (Nepa) reviews, although developers must formally request the use of this streamlined process. Full Story: Energy Intelligence
Hensel Phelps honored for construction safety efforts
Hensel Phelps has been recognized for leading the nation in construction safety and health, earning the top honor in the Associated General Contractors of America's 2024 Construction Safety Excellence Awards. As a founding member of Construction Safety Week, the company has championed industrywide improvements through programs like Craft Awareness, Recognition and Engagement in Safety (CARES), which empowers craftworkers to influence safety leadership, and by promoting participation in safety pledges. The result is a measurable reduction in incident rates and a stronger culture of jobsite safety. Full Story: Engineering News-Record (tiered subscription model) Construction Briefing
$1.3B hotel/convention center in Calif. in final stage
The Gaylord Pacific Hotel and Convention Center in Chula Vista, Calif., is being inspected ahead of a soft open in May, marking a significant milestone for the $1.3 billion project that began in 2022. The resort features a 22-story hotel, a nearly 600,000-square-foot convention center and a 500,000-square-foot parking garage. A joint venture of Mortenson and McCarthy managed challenges such as budget constraints and weather, implementing solutions like prefabricated trusses and soil mixing to stay on schedule.
Full Story: Engineering News-Record (tiered subscription model)
$400M hospital at UCLA Health on track for 2026 opening
Construction on UCLA Health's new $400 million neuropsychiatric hospital is on schedule for its planned 2026 opening, and the new 119-bed facility will replace the current Stewart and Lynda Resnick Neuropsychiatric Hospital at the UCLA hospital campus in Westwood, Calif. The design-build team, headed by HOK and McCarthy Building Cos., is making sure the new facility retains some buildings from the former Olympia Medical Center site while also adding rooftop gardens, therapy spaces, imaging, a pharmacy, labs and administrative offices.Full Story: Urbanize Media
Calif. high-speed rail completes major underpass
The California High-Speed Rail Authority has finished the Whitley Avenue underpass in Kings County, a key part of the Central Valley infrastructure. The project, done in partnership with Dragados-Flatiron Joint Venture, is part of the Merced-Bakersfield stage and includes 222 grade separations. Full Story: Newsweek (tiered subscription model)
Calif. high-speed rail faces bipartisan opposition
California's $100 billion high-speed rail project is now confronted with new uncertainty as Democrats who hold the keys to its future weigh reallocating key cap-and-trade funds amid growing cost concerns and competing climate priorities. While President Donald Trump and Elon Musk have roundly criticized the project, internal political shifts in Calif. appear likely to pose the most immediate threat to its future. Full Story: Politico
Proposed L.A. DOT budget would slash workforce by 24%
Los Angeles Mayor Karen Bass has proposed a budget that includes $7 million in cuts and a 24% workforce reduction at the city's Department of Transportation, which officials say will threaten preparations for the 2028 Olympics and citywide safety goals by impacting traffic signal updates, parking enforcement and major transit projects. Other departments, such as the Bureau of Engineering and StreetsLA, also face substantial reductions. Full Story: Los Angeles Times (tiered subscription model)
$900M transit center will offer link to LAX
The LAX/Metro Transit Center, a $900 million project aimed at connecting Los Angeles International Airport with the city's metro system, is set to open on June 6. Located at Aviation Boulevard and 96th Street, the transit center will link the K and C Lines to LAX and is a significant step towards enhancing airport access and streamlining passenger movement in time for major international events like the 2026 World Cup and the 2028 Olympics. Full Story: Los Angeles Times (tiered subscription model)
$997M L.A. rail contact won by Herzog, Flatiron Dragados
Herzog and FlatironDragados have won a $997 million contract from LA Metro to begin early work on the Southeast Gateway Line, a 14.5-mile light rail project linking Artesia to South Los Angeles. The initial phase involves hazmat abatement, demolition and utility relocations, while the overall project, estimated to cost $8.6 billion in total, includes major freight relocations, new stations and utility upgrades, with full completion targeted for 2035. Full Story: Construction Dive
---------------------------------------------------
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
