from Mark Smith, Advocate, California Builders Alliance
Architecture Billings Index continues decline in June
The Architecture Billings Index dropped to 46.8 in June from 47.2 in May, signaling continued soft business conditions for US architecture firms. While project inquiries increased for the second month in a row, the value of newly signed design contracts declined for the 16th consecutive month. Business conditions were soft nationwide, with a slight increase in the South. Full Story: Archinect
US hotel room construction sees another year-over-year dip
US hotel room construction has hit a 20-quarter low, with 138,922 rooms under construction as of June, according to CoStar. This marks the sixth consecutive month of year-over-year decline, driven by economic uncertainty and rising construction costs. Most rooms under construction are in the upscale and upper upscale segments, primarily in the South. Full story: Construction Dive
Nonresidential fuels 16% rise in starts in June
Construction starts increased 16% in June to an annual rate of $1.33 trillion, led by a 39% jump in nonresidential building, according to Dodge Construction Network. Residential starts fell 1%. "However, risks remain elevated that construction starts will be more subdued in the back half of the year -- alongside ongoing uncertainty over trade policy and the broader economy," says Sarah Martin, associate director of forecasting at Dodge. Full story: Dodge Construction Network
Nonresidential construction affected by rate uncertainty
Uncertainty surrounding interest rates is stalling momentum in nonresidential construction, with contractors delaying projects amid concerns about borrowing costs. The American Cement Association and ConstructConnect highlight a rise in delayed and canceled projects as interest rate expectations remain uncertain. Economists note that while contractors are busy, there is anxiety about future backlogs, and a clear signal from the Federal Reserve could reignite construction activity. Full story: Construction Dive
Construction jobs decline in most states in June
Construction employment dropped in 26 states and Washington, D.C., from May to June, marking the first majority decline since April 2024, according to the Associated General Contractors of America. Texas saw the largest loss of construction jobs, while California had the highest gain. Input prices for nonresidential construction rose 0.2& in June and 2.3% year over year, driven by tariffs on steel and aluminum. Full story: Construction Citizen
DOE to rescind accessibility rule for funded buildings
The Department of Energy will rescind an accessibility requirement for buildings receiving federal funds, effective Sept. 12. The rule, part of the Rehabilitation Act of 1973, mandates accessibility for new construction and renovations. The DOE says the rule is redundant due to other federal laws, but disability-rights advocates argue that the fast-tracked decision is a misuse of the process and a rollback of civil rights. Full story: Construction Dive
Surface transportation bill said to be big priority
At a July 17 event hosted by the Department of Transportation, Rep. Sam Graves, R-Mo., said this is an "aggressive timetable" for reauthorizing federal surface transportation funding. Graves prioritizing formula funding, regulatory streamlining, and greater state flexibility. Transportation Secretary Sean Duffy highlighted the importance of partnership with stakeholders and state DOTs, calling the moment "an exciting time in transportation" and a chance to "build infrastructure safer, faster, and more efficiently." The agency also plans to issue a request for information soon to gather ideas and broaden engagement in shaping the reauthorization bill. Full Story: AASHTO Journal (7/18)
Underground mapping intelligence firm attracts $96M
Exodigo, a developer of proprietary technology that combines advanced multi-sensing, 3D imaging and artificial intelligence to map underground utilities, has closed a $96 million Series B funding round. This round brings the company's total funding to $214 million since its founding in 2021. The new capital will be used to grow Exodigo's global workforce, enhance its underground data solutions, and support expansion into additional markets. Full story: The Construction Broadsheet
Study: Mass timber could have antimicrobial benefit
Mass timber could offer antimicrobial benefits for hospital construction, a study from the University of Oregon suggests. The study found that wood exposed to brief wetting had lower bacterial levels than plastic and that wood transfers microbes at a lower rate than less porous materials such as steel. The study, supported by a Wood Innovations grant from the Agriculture Department, involved researchers from Portland State University and the Salk Institute for Biological Studies. Full Story: Construction Dive
Calif. CEQA reforms to ease permitting for developers
California has enacted significant reforms to the California Environmental Quality Act, aimed at expediting development projects and addressing the housing crisis. Assembly Bill 130 exempts infill multifamily residential and mixed-use developments from CEQA, while Senate Bill 131 broadens CEQA exemptions to include various socially beneficial projects and introduces a 30-day deadline for public agency decisions. Full Story: Construction Dive
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MARK SMITH
Smith Policy Group
1001 K Street, 6th Floor
Sacramento, CA 95814
(916) 335-5072
mark@smithpolicygroup.com
smithpolicygroup.com