from Mark Smith, Advocate, California Builders Alliance
What the construction landscape looks like with Trump
With Donald Trump set to return to the White House in 2025, contractors can expect a immigration policies that could exacerbate the industry's labor shortage, but also a friendlier regulatory environment, a federal push for tax cuts and continued tariffs on Chinese products. Organizations such as the Associated General Contractors of America and the National Utility Contractors Association have remained politically neutral, but NUCA CEO Doug Carlson used the election results as an opportunity to call on Congress to appropriate funds for water infrastructure programs at the levels signed into law through the 2021 Infrastructure Investment and Jobs Act and start planning for what comes next after this funding expires in fiscal 2026. Full Story: Construction Briefing
Second Trump term could bring more I-9 audits
A second Trump administration could bring renewed immigration enforcement, including worksite raids and an increase in I-9 audits. Agencies like the EEOC and NLRB are likely to see leadership changes and a shift in policy focus, including a potential rollback of certain diversity, equity and inclusion programs, and slowed regulatory activity on overtime, noncompete and contractor rules. Full Story: Construction Dive
Civil contractors may thrive regardless of election
The 2024 presidential election is creating uncertainty in the construction industry, with private projects pausing as companies adopt a wait-and-see approach, though essential public sector work continues. But while some economists are concerned about uncertain market conditions, others, such as Alok Chanani, co-founder and CEO of BuildOps, argue that regardless of the election outcome, demand for skilled trades remains high, driven by critical infrastructure needs like roads, bridges and energy systems. Both political parties support the industry, with Republicans favoring deregulation and private investment, while Democrats prioritize union labor and green infrastructure, ensuring the trades sector will thrive either way. Ken Simonson, chief economist for the Associated General Contractors of America, says AGC members as a whole are not suggesting election uncertainty has caused owners to hold off on public sector projects, noting that certain work on critical infrastructure is "especially immune to election uncertainty." Full Story: Contractor Magazine Construction Dive
Trump may shift strategy, but IIJA should be safe
A second Trump administration is likely to prioritize highway expansion over public transportation and high-speed rail, shifting focus away from urban transit and green initiatives. Energy policy is also expected to favor traditional energy sources, with a less aggressive approach to electric vehicle infrastructure and climate-focused projects. The Associated General Contractors of America remain confident that Trump will not attempt to claw back funding from the Infrastructure Investment and Jobs Act, given the bipartisan support for infrastructure projects and the political challenges of reversing promised investments. Full Story: Engineering News-Record (tiered subscription model) Smart Cities Dive Engineering News-Record (tiered subscription model)
Many of Biden's water regs may change under Trump
The Waters of the US rule, Section 401 permitting and regulations to remove PFAS and lead from drinking water supplies are a few of the policies that may be vulnerable under the incoming Trump administration, say legal experts. "I think at the very least the Trump administration will restore its WOTUS rule," said Jeff Porte of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC. The recently finalized Lead and Copper Rule Improvements rule could also be at risk. Full Story: Bloomberg Law
US trade likely to lean heavily on tariffs beyond 2024
US trade policy is shifting towards increased tariffs in the energy sector, driven by both former President Donald Trump and Vice President Kamala Harris, who have both promised to bolster domestic manufacturing if they win the 2024 presidential election. This marks a departure from decades of free trade advocacy. Economists are divided, with some supporting targeted tariffs to reduce dependency on Chinese clean energy goods, while others argue that tariffs ultimately harm consumers and complicate clean energy projects. Full Story: E&E News
Job numbers miss expectations in Oct.
The US construction industry added 8,000 jobs in October, with average construction worker pay outpacing private industry by nearly 19%, according to the Associated General Contractors of America. Construction accounted for two-thirds of the total jobs added across all industries, which combined fell short of expectations by 89%. Hurricanes and labor strikes are getting the brunt of the blame, but revised job numbers for August and September suggest a broader labor market deceleration that raises concerns about economic stability. Full Story: Associated General Contractors of America Forbes (tiered subscription model)
US economy's Q3 growth seen strong ahead of election
The US economy is projected to have grown at a robust 3.0% in Q3 according to the Commerce Department, driven by resilient consumer spending and easing inflation, just days before the presidential election. While economic strength could support a gradual Federal Reserve easing path, high costs for essentials remain a top issue for voters. Full Story: Reuters Barron's
Construction spending up 0.1% in Sept.
In September, US construction spending rose 0.1% to an annualized $2.1 trillion, driven by increases in both residential and nonresidential sectors, contrary to economists' expectations of no change. Private residential construction saw a 0.4% rise in single-family spending, while nonresidential gains were led by projects in education, transportation, and commercial spaces, with manufacturing up 21% year-over-year. Full Story: Dodge Data & Analytics
US hotel construction pipeline hits record high
The US hotel construction pipeline reached a record high at the end of Q3, with a 9% year-over-year increase in projects to 6,211 and a 7% rise in rooms to 722,821, according to Lodging Econometrics. Upper-midscale chains lead with 2,316 projects, while midscale hit a record with 928 projects. Full Story: The Construction Broadsheet
Mid-rise housing demand surges to meet urban needs
The demand for mid-rise housing in the US has led builders to focus on cost-effective solutions, and the construction of new rental apartments reached a half-century peak with 420,000 units built in 2022. Mid-rise buildings, often called 'five-over-ones,' offer a practical response to housing needs, balancing developer costs and urban density requirements. Full Story: Building Design+Construction
New rules mandate positive protection devices in work zones
The Biden administration has updated the Work Zone Safety and Mobility Rule and the Temporary Traffic Control Devices Rule to enhance safety for workers and motorists. The updates include requiring positive protection devices and encouraging comprehensive work zone reviews. The changes aim to support the Bipartisan Infrastructure Law and align with the National Roadway Safety Strategy. Full Story: Roads & Bridges
EIA cites slight uptick in cost to build solar PV
In 2022, construction costs for natural gas-fired generators fell by 11%, while costs for solar PV systems and wind turbines saw slight increases, according to the Energy Information Administration. Natural gas, solar and wind projects accounted for 86% of new capacity added to the US electric grid, with combined-cycle natural gas facilities experiencing a significant cost drop, while solar and wind costs rose modestly. Full Story: Power Engineering
US trade deficit widens to $84.4B in Sept.
The US trade deficit widened to $84.4 billion in September from an upwardly revised $70.8 billion in August, per the Census Bureau. Exports fell by $3.2 billion to $267.9 billion, while imports rose by $10.3 billion to $352.3 billion. The deficit has acted as a brake on the American economy for much of the past year. Full Story: Reuters
Election could shake up key Congressional committees
The upcoming election may change the leadership of critical Congressional committees. Sen. Mike Crapo, R-Idaho, could lead the Senate Finance Committee, potentially impacting tax policy and municipal bonds, while Sen. Tim Scott, R-S.C., may head the Banking Committee if Republicans take the Senate. On the House side, if Democrats win, Rep. Richard Neal, D-Mass., a municipal bond advocate, could chair Ways and Means, while Rep. Maxine Waters, D-Calif., could lead the Financial Services Committee, focusing on flood insurance reform. Full Story: The Bond Buyer
What if your helmet could detect falls and call for help?
Båstadgruppen's Guardio brand has introduced the Armet Pro, a smart safety helmet that detects falls and impacts and automatically calls for help if necessary. The helmet features a multidirectional impact protection system and a Quin sensor that measures motion and forces 1,000 times per second. Full Story: Construction Briefing
Contractors brace for STCKY situations
Construction companies are adopting new safety metrics to address stagnant fatality rates, shifting focus from total recordable injury rates to severe hazards. Sundt's "Stop the STCKY" program, for example, targets "Stuff That Can Kill You," emphasizing direct controls and safeguards. Hoar Construction and KS Industries are also identifying factors for serious injuries, such as utility strikes and worker fatigue, to improve safety measures. Full Story: Construction Dive
ICC is updating codes, but don't make mistakes in the interim
Assuming that local building codes are up-to-date when they actually aren't can hinder disaster preparedness, says Kevin McOsker from the International Code Council. Additionally, improper storage of materials and lack of adequate safety plans during construction can pose significant risks. However, the International Code Council has highlighted significant updates in the 2024 International Codes to enhance safety and resilience. The International Building Code includes tornado resistance provisions for the first time, and the International Residential Code and International Fire Code address hazards from energy storage systems. The International Energy Conservation Code improves energy efficiency by 6.5%, and the International Mechanical Code facilitates the transition to A2L refrigerants. Full Story: For Construction Pros
$5.5B from federal government heads to port, rail projects
The US government is providing $5.5 billion in grants for various port and rail infrastructure improvements. The EPA's Clean Ports Program will allocate $3 billion across 55 projects in 27 states to fund zero-emission cargo equipment and renewable energy infrastructure at ports like Los Angeles and Virginia. Meanwhile, the Federal Railroad Administration will award $2.4 billion to 122 rail projects in 41 states to improve safety, bridge resilience and reduce pollution, including a major rail bridge replacement in New York and upgrades in Illinois and California. Full Story: The Construction Broadsheet
Is academia starting to "get it" with the trades?
Amid a shift away from traditional college paths, educational institutions are increasingly embracing skilled trades, with many high schools and colleges now incorporating career and technology education programs and facilities to meet workforce demands. Cliff Whittingstall of PBK notes that these modern training centers, which prioritize advanced machinery, collaboration spaces and industry partnerships, are helping reshape perceptions of trade careers, offering students debt-free pathways to stable, high-paying jobs and fostering closer ties between education and local businesses to address the skilled labor shortage. Full Story: Forbes (tiered subscription model)
FHWA invests in digital construction management tools
The Federal Highway Administration has awarded $16.6 million to eight states to promote technologies aimed at expediting transportation project delivery. The funding, made available through the Advanced Digital Construction Management Systems program, supports the growth of tools such as building information modeling and real-time information sharing to streamline workflows and improve efficiency across the life cycles of projects. Full Story: Department of Transportation/Federal Highway Administration
Trimble: Interoperability, AI will define 2025
Trimble expects a key theme of 2025 will be the construction industry's increased prioritization of interoperability of technology solutions as well as the continued evolution of AI. Other trends to watch include advancements in safety and reality capture technologies, an increased adoption of subscription services for software and hardware, and the integration of robotics and autonomous machines to enhance efficiency and productivity in construction projects. Full Story: For Construction Pros
$10B school construction bond approved in Calif.
Californians has approved Proposition 2, a $10 billion bond for TK-12 schools and community colleges to fund essential infrastructure repairs, new construction, and modernization efforts. The initiative will provide a 50% state match for new builds and a 60% match for renovations, helping to address a backlog of aging facilities and improve learning environments across the state. Full Story: EdSource
$798M approved for LA Metro rail extension
The Los Angeles County Metropolitan Transportation Authority has approved $798 million to complete the extension of the A Line light rail into San Bernardino County. The funds will support construction of the 3.2-mile segment from Pomona to Montclair, including a station in Claremont. If completed as expected, it will mark the first time an LA Metro light rail line will extend beyond Los Angeles County. Full Story: The Orange County Register (Irvine, Calif.)
Clayco lifts dirt at site of $300M Calif. hotel
Clayco has started construction on the $300 million Kali Hotel and Rooftop, set to open in 2026 within the Hollywood Park development in Inglewood, Calif. The 13-story Marriott Autograph Collection hotel will offer 300 rooms, extensive event spaces, a rooftop pool and wellness amenities, all within walking distance of SoFi Stadium, YouTube Theater, and the Intuit Dome. Full Story: Construction Dive
Tutor Perini subsidiary wins $1B-plus contract
Tutor Perini subsidiary Rudolph and Sletten has secured a contract exceeding $1 billion for a healthcare campus project in California. The project entails constructing a new hospital, an energy center, and a parking garage, with work slated to commence in late 2024 and substantial completion anticipated by 2029. Full Story: Law360
$166M double track train bridge project begins in Calif.
The San Diego Association of Government and the California Department of Transportation have kicked off the Batiquitos Lagoon Double Track project, which will add a mile of double track between Encinitas and Carlsbad, replacing an old bridge to reduce train bottlenecks and improve travel times. The $166 million project will also restore local beach areas and habitats. Work is expected to wrap up in 2028. Full Story: Mass Transit KPBS-TV/KPBS-FM (San Diego)
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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
