from Mark Smith, Advocate, California Builders Alliance
Hotel construction pipeline grows 3% YOY in Q2
The US hotel construction pipeline reached 6,280 projects, or 737,036 rooms, in the second quarter, a 3% increase from a year earlier, according to Lodging Econometrics. Growth was driven by upper-tier chain scales and extended stay properties, with the upper midscale and upscale segments comprising 59% of the pipeline. Dallas led all cities with 199 hotel projects, followed by Atlanta, Nashville, Tenn., Austin, Texas, and Phoenix. Full Story: Construction Dive/Hotel Dive
Construction employment sees mixed trends in July
Construction employment in July increased by 2,000 from June and 96,000 year-over-year, but residential construction employment declined by 4,400 in June and 18,200 year-over-year, according to an analysis by the Associated General Contractors of America. Nonresidential construction employment increased by 6,400 for the month and 114,400 year-over-year. The unemployment rate for workers with construction experience was 3.4%, tying with 2018 for the lowest July rate in series history dating back to 2000. Full Story: Construction Citizen
Report: Construction spending down in June
US construction spending declined 0.4% in June after a revised 0.4% decrease in May, driven in part by a 1.8% drop in outlays for single-family housing projects. Spending for private construction projects was down 0.5%, while spending for public projects rose 0.1%, according to the Commerce Department. Full Story: Reuters
CRE adjusts to tariffs as acceptance replaces concern
The commercial real estate sector has shown resilience to President Donald Trump's latest tariffs, including a 35% tariff on Canadian imports and a 50% tax on imported semifinished copper products. While the new tariffs have driven up construction costs and caused project interruptions, industry professionals have largely accepted the tariffs as a long-term reality. Full Story: Bisnow (free registration)
Funding shortfalls loom for road, bridge maintenance
States are facing a potential funding shortfall over the next decade that could hinder road and bridge maintenance, according to an analysis by The Pew Charitable Trusts. Twenty-four states report a combined $86.3 billion gap, despite increased spending from pandemic relief and the Infrastructure Investment and Jobs Act. "Many states and localities struggle to make the investments necessary to preserve and maintain their transportation systems," according to the Pew report. Full Story: Construction Dive/Smart Cities Dive
Tariffs take effect Thurs. with exemptions
US Customs and Border Protection has clarified the rollout of President Donald Trump's expanded reciprocal tariffs, stating that the new levies will not apply to goods loaded onto vessels for US import before 12:01 a.m. New York time on Thursday. Some countries are still seeking last-minute deals to avoid higher duties before the implementation deadline. Full Story: Bloomberg
Appeals court reviews Trump's use of IEEPA for tariffs
The US Court of Appeals for the Federal Circuit is reviewing whether President Donald Trump has overstepped his authority by using the International Emergency Economic Powers Act to impose tariffs. Genova Pipe and other businesses argue that Trump exceeded congressional powers, while the Justice Department maintains that the president has broad discretion under the law. The case, which could reach the Supreme Court, comes as Trump announces new tariffs ranging from 10% to 50% on goods from various countries. Full Story: Plastics News
Construction jobs make up 7% of Baltimore workforce
Construction employs 7% of the Baltimore workforce, surpassing the national average of 6.1%. The US construction sector faces uncertainty in 2025, with high demand for housing and infrastructure, but also challenges such as labor shortages and slowed construction spending. Wyoming has the highest concentration of construction workers at 11%. Full Story: CityBiz
Caterpillar braces for major tariff headwind
Caterpillar anticipates $1.3 billion to $1.5 billion in tariff-related costs this year, primarily from tariffs that are set to take effect today. During the second quarter, Caterpillar faced a $350 million tariff impact, contributing to a 19% decline in net profit to $2.2 billion. The company is implementing cost control measures, such as cutting discretionary spending and enhancing dual sourcing, to mitigate these effects. Full Story: Manufacturing Dive
Data center work propels Turner to record backlog
Turner Construction has reported a record backlog of more than $39 billion for the first half of 2025, a 21% increase from last year. Revenue surged 44% to $13.4 billion, driven by strong performance in data centers, healthcare, education, and sports and entertainment. Turner attributed its growth partly to the acquisition of Dornan Engineering, enhancing its capacity for complex projects. Full Story: Construction Dive
Lagging tech adoption threatens data center delivery
The construction industry must adopt more technology to meet the increasing demand for data centers driven by artificial intelligence, according to a white paper from Revizto. The report highlights that many construction teams still rely on nonintegrated tools such as spreadsheets and email, which could hinder the ability to keep up with the fast-paced requirements of data center projects. Capital expenditure on data centers is expected to exceed $1 trillion annually by 2029, with major tech companies investing heavily this year. Full Story: Construction Dive
Jacobs capitalizing on high-growth markets
Jacobs is riding a wave of momentum across high-growth sectors like data centers, water and other infrastructure work, buoyed by a new partnership with Nvidia and strong third-quarter earnings. The company also recently secured a $150 million contract to manage a new rental car hub and transit system at Denver International Airport, reinforcing its deepening role in large-scale transportation and tech-driven projects. Full Story: Construction Dive Construction Dive
Meta goes sustainable for data center buildout
As demand for data infrastructure skyrockets, Meta is reengineering how its data centers are built to cut embodied carbon without slowing construction. In Minnesota, the company teamed up with Amrize and academic researchers to develop an AI-optimized concrete mix that strengthens faster and reduces emissions by 35%. Meanwhile, in South Carolina and beyond, Meta is piloting mass timber construction of buildings at data centers, aiming to cut emissions by over 40% compared to steel and concrete.
Report: AI investment in construction rises, maturity lags
Construction firms in the US are investing in artificial intelligence, cybersecurity and cloud platforms but remain early in digital transformation. While 82% of firms have an AI strategy, most use AI minimally and 73% plan to invest in cybersecurity, 80% have experienced data breaches in the past year, according to a report by Wiplifi. Larger firms are more advanced in data analytics, but 12% of those with more than $250 million in revenue rely on manual reporting. "Technology maturity in construction is still in its adolescence," Full Story: Construction Briefing
St. Louis stops MBE, WBE contracts over federal guidance
St. Louis has stopped issuing new construction contracts under its Minority and Women-Owned Business Enterprise goals because of federal guidance that threatens to withhold funding for cities with such programs. "While this decision does not currently impact our private-sector work, the broader implications are clear," says says Todd Weaver, CEO of TW Constructors & Affiliates. Full Story: Engineering News-Record (tiered subscription model)
Burgeoning startup aims to be "Tesla of mini excavators"
HeavyTech, a startup based in Indiana, aims to be the "Tesla of mini excavators" by producing modular compact machines that switch between battery-electric and diesel-hybrid systems. The company's innovative approach and alternative funding model set it apart from established manufacturers. Full Story: Construction Briefing
Clark contracts with White House for new ballroom
Construction on a $200 million, 90,000-square-foot ballroom at the White House is expected to begin in September. The new 'state ballroom' will be built where the East Wing currently stands, requiring the temporary relocation of staff. The project, which will be built by Clark Construction, is intended to expand the White House's entertaining capacity and will be funded by Trump and private donors. The ballroom will feature a colonnade, a Palladian facade, and seat up to 650 guests, surpassing the current largest space, the East Room. Full Story: Northern Virginia Magazine CNN
How Suffolk is approaching health care builds in SoCal
Health care construction in Southern California is being shaped by urgent demands for flexibility, speed and minimal disruption to ongoing operations. Suffolk is seeing a shift toward smaller-scale projects, such as targeted renovations and imaging suite remodels, as opposed to large-scale hospital builds. The implementation of Senate Bill 1953, requiring seismic upgrades by 2030, is also driving investment in structural and utility improvements. The company is leveraging artificial intelligence and predictive analytics to enhance project delivery in health care construction. Full Story: Construction Dive
Swinerton selected for housing project at San Diego St.
Swinerton is leading the design and construction of the Evolve Student Housing project at San Diego State University, which will add 3,640 beds. The project includes the suite-style Tarastec residence hall, University Towers East and the Templo del Sol community center. The first phase is scheduled for completion in 2026. Full Story: REBusinessOnline
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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
