from Mark Smith, California Builders Alliance
The Federal Reserve's preferred inflation gauge, the core personal consumption expenditures price index, is expected to show slower growth for August, rising 0.2% from July's 0.3%. This could give the Fed more flexibility to address a weakening labor market, as highlighted by Chair Jerome Powell. The report is also expected to show subdued consumer spending and steady personal income, with economists watching these figures closely for signs of economic recovery.
The American Institute of Architects reports a continued decline in the Architecture Billings Index, which registered 47.2 in August, marking the 18th consecutive month of declining design contracts. However, AIA Chief Economist Kermit Baker notes a potential bottoming out as inquiries for new projects have risen for four months.
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Full Story: The Architect's Newspaper |
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Construction project stress showed a short-term improvement in August, with the Project Stress Index falling 5.9% from July, although overall stress remains higher than last year, according to ConstructConnect. Private projects saw a significant recovery, with on-hold activity down 71% year-over-year, but public project abandonments surged 223% in sectors such as education and transportation.
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Full Story: Construction Dive |
Total construction starts rose 1.7% in August to an annual rate of $1.23 trillion, driven by a 9.3% increase in nonbuilding activity and a 2.4% rise in residential starts, according to Dodge Construction Network. However, nonresidential building starts fell 5.4%. Year-to-date, total construction starts are up 1.9%, with nonresidential starts up 3.4% and residential starts down 5%.
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Full Story: Dodge Construction Network |
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The US is set to complete more than 500,000 new apartment units this year, a 21% decrease from last year's record, per RentCafe. The slowdown is attributed to higher building costs, interest rates and a supply surplus in the South and West. "The boom in multifamily construction is ending," researchers at Harvard University's Joint Center for Housing Studies wrote in a June report. Despite the slowdown, demand for rentals remains high as buying becomes less affordable.
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Full Story: Axios |
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Nevada's construction industry has shed 7,100 jobs, or 6.4%, in the past year, largely because of a decline in tourism and economic uncertainty, according to the Associated General Contractors of America. The Las Vegas area has been particularly hard hit, with a significant drop in both commercial and residential construction.
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Full Story: Las Vegas Review-Journal (tiered subscription model) |
Washington lost 11,100 construction jobs from August 2024 to August 2025, a 4.9% decline that places it among the states with the largest job losses, according to the Associated General Contractors of America. This contrasts with nationwide trends, where 28 states and the District of Columbia saw job growth, led by Texas and New Mexico. Labor shortages are a significant issue, with 92% of firms struggling to fill positions.
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Full Story: KIRO-FM (Seattle) Associated General Contractors of America |
James Gallagher of Resolution Management Consultants identifies eight common mistakes in construction contracts that often lead to disputes, including lacking a detailed process for changes, outdated force majeure clauses, incomplete payment definitions and poorly defined project scope and timelines. Gallagher emphasizes the importance of anticipating potential issues during contract development to prevent disputes and save time and money.
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Full Story: Construction Dive (9/19) |
The House has passed two bills aimed at streamlining the permitting process for energy projects. The first bill, the Federal Permitting Reform and Jobs Act, would set a two-year deadline for federal agencies to approve or deny permits for major infrastructure projects. The second bill, the Building United States Infrastructure and Leveraging Development (BUILD) Act, would allow state and local governments to take over the permitting process for certain projects.
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Full Story: Engineering News-Record (tiered subscription model) |
Lt. Gen. William Graham Jr., chief of engineers for the US Army Corps of Engineers, says the Corps will seek congressional authorization for new projects only after reaching about 35% of the design work, rather than at the conceptual level of about 10%. Graham says the change will help reduce delays, improve project quality and manage costs, but Sen. Alex Padilla, D-Calif., has questioned whether the Corps will have enough resources to advance large projects to the new threshold.
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Full Story: Engineering News-Record (tiered subscription model) |
The Los Angeles City Council has approved a $2.6 billion expansion of the Los Angeles Convention Center in an 11-2 vote, despite warnings from policy advisers that the project could divert funds from essential services for decades. Mayor Karen Bass and supporters say the expansion will create jobs and boost tourism, while critics, including City Controller Kenneth Mejia, argue it is too costly amid a budget crisis. The project faces a tight deadline to be ready for the 2028 Olympics, with construction set to begin immediately.
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Full Story: Los Angeles Times (tiered subscription model) |
The Golden Gate Bridge is set to undergo a nearly $1-billion seismic retrofit targeting its two main towers, the 1,125-foot-long side spans, and addressing lead paint abatement. Halmar International is finalizing construction plans for the major infrastructure project, which aims to bolster the bridge's resilience against earthquakes.
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Full Story: Engineering News-Record (tiered subscription model) |
San Diego International Airport has unveiled the $3.8 billion Terminal 1, which spans 1.16 million square feet and was designed by Gensler to reflect the area's outdoor lifestyle. The terminal features a 537-panel glass facade, has 19 gates open, and offers amenities such as hotel-like restrooms and an outdoor deck.
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Full Story: San Diego Business Journal |
One Beverly Hills, a $10 billion development, has started in Beverly Hills, Calif., near Rodeo Drive. The 17.5-acre project will include an Aman hotel, luxury condominiums with large balconies and private pools, and 200,000 square feet of retail and restaurant space.
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Full Story: The Wall Street Journal |
The Trump administration has unveiled a $5 billion program to boost passenger rail traffic, including redistributing $2.4 billion from California's high-speed rail project. The National Railroad Partnership Programprioritizes safer grade crossings and locations with higher birth and marriage rates, while omitting diversity and climate change initiatives. California officials have vowed to challenge the funding redirect in court.
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Full Story: The Associated Press |
Two miles of 15-foot-high levees have been built along the southern shoreline of San Francisco Bay, protecting the low-lying community of Alviso and the San Jose-Santa Clara Regional Wastewater Facility from flooding exacerbated by sea-level rise. The $197 million project, part of the South Bay Shoreline Project, replaces old berms and is a key step in restoring 2,900 acres of former industrial salt ponds to tidal wetlands.
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Full Story: East Bay Times (Walnut Creek, Calif.) |
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Granite secures $39M contract for Pajaro River flood project |
Granite has been awarded a $39 million contract by the Army Corps of Engineers for the first phase of the Pajaro River Flood Risk Management Project in Watsonville, Calif. The project involves building 2.6 miles of levees and 1,500 feet of floodwalls to mitigate flood risk. Construction is set to begin in fall 2025 and conclude by October 2027.
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Full Story: Investing (Cyprus) |
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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
