FinCEN exempts US companies from BOI reporting
The Financial Crimes Enforcement Network has issued an interim final rule that exempts US companies from beneficial ownership information reporting under the Corporate Transparency Act, while foreign companies must still comply. The rule might face legal challenges, as some lawmakers argue it contradicts the intent of the CTA. Full Story: Land Line Magazine
Dodge Momentum Index climbs 3.7% in May
The Dodge Momentum Index rose 3.7% in May, driven by a 10.5% increase in institutional planning, particularly in education and recreational projects. Commercial planning saw a modest 0.8% growth, with significant contributions from warehouse and hotel projects. Overall, the index was up 24% year over year, with institutional planning up 47% and commercial planning up 15%. Full Story: Dodge Construction Network
Construction spending falls amid tariff uncertainty
Construction spending decreased by 0.4% in April from March and 0.5% year over year, marking the first annual decline since 2019, according to the Associated General Contractors of America. Private nonresidential investment and homebuilding dropped due to uncertainty over tariffs and trade, while public construction spending increased. Full Story: Associated General Contractors of America
Nonresidential construction costs rise 2.24% in Q1
Nonresidential construction costs rose 2.24% in Q1, driven by labor cost increases and material pricing fluctuations due to tariffs, according to the Mortenson Construction Cost Index. A federal court recently blocked President Donald Trump from imposing broad tariffs under an emergency-powers law, adding to the uncertainty. Full Story: Finance & Commerce (Minneapolis)
OC construction revenue rises 7.3% to $10.5 billion
Revenue from the largest construction companies in Orange County, Calif., increased 7.3% to $10.5 billion for the 12 months through April, the Orange County Business Journal says. McCarthy Building Cos. led the list with a 63% increase to $2 billion. Full Story: Orange County Business Journal (Irvine, Calif.)
US hotel conversions surge amid high construction costs
The US hotel market is experiencing a significant conversion boom, driven by rising construction costs and the need for quicker market entry. Brand conversions reached a record 136,668 rooms in the first quarter, a 13% increase from the previous year, according to Lodging Econometrics. Investors are attracted to conversions for their shorter development timelines and lower capital expenditure, with significant activity in urban areas with high development barriers, such as Southern California and New York.Full Story: Hotel Management online
Ferrovial exec: Private sector key in US infrastructure
Silvia Ruiz, global head of investor relations at Ferrovial, highlights the private sector's role in bridging the US infrastructure funding gap amid uncertain federal support. Ruiz notes rising demand for transportation, data centers and energy projects driven by urbanization and population growth, making infrastructure a stable and inflation-resistant investment. Full Story: Construction Dive
Opinion: Real estate market on the verge of a comeback
Real estate development might be on the verge of a rebound, with San Francisco office buildings selling at a fraction of previous values, indicating potential investor confidence, writes the Engineering News-Record Editorial Board. CBRE reports a 14% increase in Q1 real estate investment, driven by private and institutional investors. Major projects are underway in cities like San Antonio and Denver, although financing remains a challenge due to high construction loan rates.
Full Story: Engineering News-Record (tiered subscription model)
Residential construction jobs fall by 7,500 in May
The construction industry added 4,000 jobs in May, as nonresidential contractors added 11,300 jobs and residential contractors eliminated 7,500 jobs, according to the Bureau of Labor Statistics. "This report marks the slowest five-month employment growth since 2020," says Anirban Basu, chief economist for Associated Builders and Contractors. Full Story: Engineering News-Record (tiered subscription model)
Construction, real estate experts say Tallahassee raid may spark 'chilling effect'
- Experts say the raid may increase project costs and delay completion times due to the difficulty of replacing workers.
- Some experts express sympathy for workers trying to make a living, while others emphasize the need to address illegal immigration.
Several construction and commercial real estate experts say there's now a chilling effect following the illegal immigration raid and detainment of more than 100 workers at a construction site in CollegeTown. On May 29, officials from the U.S. Immigration and Customs Enforcement (ICE), the Florida Highway Patrol and four other state and federal agencies swarmed a future student housing complex and began checking the immigration status of at least 200 people. While this may possibly be the largest single-day operation yet in Florida, it may not be the last. There's growing concern from those in the construction industry that the crackdown will eventually drive up project costs and derail schedules.
ICE raid at Fla. construction site leads to 100+ arrests
More than 100 people were arrested by US Immigration and Customs Enforcement during a raid at a Tallahassee, Fla., construction site, including individuals from several Latin American countries. Hedrick Brothers, the general contractor, says the arrests involved subcontractor employees. "As we publicly stated, we had no advance notice of or awareness of this matter," said Hedrick. "We also noted that we are in full compliance with all E-Verify employment mandates." Full Story:Engineering News-Record (tiered subscription model)
Firms push ahead with Construction Inclusion Week
Major construction firms such as Turner Construction, M.A. Mortenson and Gilbane Building are moving forward with Construction Inclusion Week despite executive orders against diversity, equity and inclusion initiatives. The event aims to attract workers by fostering an inclusive environment, which Turner President Abrar Sheriff says is crucial to address a labor shortage amid increased demand for infrastructure projects. Full Story: Construction Dive
Proposal to fast-track NEPA reviews for a fee
The Senate Environment and Public Works Committee has advanced a budget reconciliation proposal that includes a provision for project sponsors to expedite environmental reviews by paying a fee. The provision, part of the National Environmental Policy Act amendment, sets strict deadlines for federal regulators to complete assessments and impact statements. Full Story: Engineering News-Record (tiered subscription model)
White House advances plan to digitize permitting
The White House has introduced the Permitting Technology Action Plan, which sets minimum digital standards for federal agencies to streamline the National Environmental Policy Act reviews and permitting. The plan requires structured data submissions, automated screening, transparent case tracking and AI-assisted comment review, potentially reducing permitting time from years to months. Full Story: Construction Briefing
Mentorship is key to building future construction leaders
Mentorship is crucial for addressing the construction industry's talent gap and for developing future leaders, writes Nelson Frech, senior project manager at Skender Construction. Frech explains how mentorship complements structured training by fostering critical judgment, adaptability and leadership skills. Mentorship can bridge the generational gap, enhance decision-making and nurture relationships with trade partners, Frech writes. Full Story: Construction Dive
Private project abandonments reach record high in May
Private developers scrapped a record number of projects in May, driven by high interest rates and changing market conditions, according to ConstructConnect. The Project Stress Index rose 11.4%, with private sector abandonments up 62.6% for the month and 92.2% year over year. "Abandonment activity has continued to rise, reaching its highest reading in over a year," said Devin Bell, associate economist at ConstructConnect. "While public sector abandonment activity remains within historic levels, private sector abandonments have reached multi-year highs." Full Story: Construction Dive
Legal considerations for construction innovation
Innovation is becoming essential for the construction industry amid aging infrastructure and extreme weather, attorney Yvonne Castillo noted at the Building Innovation 2025 conference. However, she warned of the legal risks associated with new technologies and approaches, emphasizing the importance of climate modeling to mitigate liability. Full Story: Construction Dive
Infrastructure delivery needs digital-first approach
Khaled Naja emphasizes that the traditional approach to infrastructure delivery is outdated, suggesting that digital technologies should be the foundation rather than an afterthought. This shift is crucial for addressing modern infrastructure challenges effectively, Naja writes. Full Story: Engineering News-Record (tiered subscription model)
Mass timber gains traction as steel tariffs persist
Timberlab President Chris Evans discusses the impact of steel tariffs on the construction industry, noting that mass timber is becoming a more attractive alternative. Timberlab has been building a domestic supply chain since 2021, with fabrication facilities and a sawmill coming online in 2027. Despite economic uncertainty, the demand for mass timber is increasing, particularly in the Southeast and Texas. Evans says Timberlab aims to become a major supplier to other contractors.Full Story: Construction Dive
German Bionic debuts AI-powered Exia exoskeleton
German Bionic has unveiled Exia, an exoskeleton augmented by artificial intelligence, using billions of real-world motion data points to support construction workers by providing lifting assistance and monitoring safety. Exia's adaptive lift engine supports up to 84 pounds, and the device is protected against dust and water. Full Story: Construction Dive
FRA moves to end $4B in grants for Calif. high-speed rail
The Federal Railroad Administration has proposed halting $4 billion in grants for the California High-Speed Rail Authority, citing concerns that the authority will not complete a 171-mile segment by the 2033 deadline. The authority faces a $6.5 billion funding gap, numerous change orders and a missed deadline for procuring rolling stock. Full Story: Engineering News-Record (tiered subscription model)
Sacramento council approves Republic FC stadium project
The Sacramento City Council has unanimously approved the construction of a 12,000-seat stadium for the Sacramento Republic FC in the downtown Railyards. Wilton Rancheria will finance $175 million of the $325 million cost, with the stadium set to open in 2027. Critics have raised concerns about the city's $62 million budget deficit, but officials say infrastructure changes will fund the project. Full Story: The Sacramento Bee (Calif.) (tiered subscription model)
Turner Construction to build Sacramento Republic stadium
Turner Construction has been chosen to build a new stadium for Sacramento Republic FC, with the project approved by the Sacramento City Council. The 12,000-seat, $175 million venue, designed by Manica and House and Robertson Architects, is set to break ground in late summer 2025 and open in 2027. Machete Group is overseeing the project, which could expand to over 20,000 seats in future phases.Full Story: Sports Business Journal
Calif. airport begins $65M terminal project
California's Monterey Regional Airport is starting the construction of a new passenger terminal designed as a modern and efficient facility. The terminal will improve the flow and movement of passengers and visitors, enhancing the overall airport experience. Full Story: KSBW-TV (Salinas, Calif.)
---------------------------------------------------
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
