from Mark Smith, California Builders Alliance
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Kellen Concepcion, a former Marine, is now the head of Semper Fi Rebar, a California-based subcontractor. Concepcion's military experience, particularly witnessing reconstruction efforts in Iraq, inspired his construction career. After overcoming injuries and challenges transitioning to civilian life, he found camaraderie in ironwork, leading to the founding of Semper Fi Rebar in 2016. The company has worked on major projects like Los Angeles International Airport and SoFi Stadium.
Fluor reported a quarterly loss due to a $653 million charge on an Australian LNG project but remained upbeat about future reimbursable megaprojects and growth in power work. Tutor Perini posted a record $21.6 billion backlog and returned to profitability, driven by federal infrastructure spending and steady progress on major rail and transit jobs. WSP, meanwhile, logged double-digit gains in revenue, profit, and backlog, reinforcing its North American focus and signaling continued a rumored expansion through strategic acquisitions, notably Jacobs.
The Dodge Momentum Index fell by 7.1% in October, following several months of record-setting growth. Commercial planning slipped by 2.9%, while institutional planning decreased sharply by 15.2%. This slowdown comes after a period of rapid acceleration, signaling that planning activity has begun to level off amid mounting macroeconomic risks.
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The US government shutdown has halted the release of key economic reports, including two monthly jobs updates and potentially an inflation reading, leaving the Federal Reserve without critical data ahead of its December policy meeting. The data gap complicates the debate over further rate cuts, with Fed officials now relying on private-sector estimates and older surveys. Upcoming speeches by officials are expected to provide insight into how policymakers are interpreting an economy shaped by AI investment and uneven labor market trends.
Contractor backlog slips, strength depends on sector
A majority of builders believe construction activity is contracting, per Associated Builders and Contractors, yet those in leading sectors have healthy books.
The Department of Transportation faces a backlog of reviews and funding decisions after reopening following the 43-day government shutdown, compressing deadlines for funding under the Infrastructure Investment and Jobs Act. The department has obligated 59% of available IIJA grant funding, according to the Government Accountability Office, while facing inflation and lengthy environmental reviews. The shutdown has added weeks of delay to federal actions needed to obligate the next round of formula funds and finalize competitive grant agreements.
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Full Story: Engineering News-Record (tiered subscription model) |
Crews are busy on several high-profile transit projects that will prepare Los Angeles for the 2028 Olympic Games. Howard Fine from the Los Angeles Business Journal has provided updates on where progress stands on those projects, including:
- L.A. Metro's $9.7 billion D Line Extension--built by Skanska, Traylor Bros., and J.F. Shea on Segment 1 and by Tutor Perini and O&G Industries on Segments 2 and 3--is nearly complete on its first section and tracking toward full Westwood service by late 2027.
- At LAX, the LINXS joint venture of Fluor, Balfour Beatty, Grupo ACS, and Alstom has the $3.34 billion Automated People Mover at about 95% completion, while PCL Construction’s $2 billion Consolidated Rent-A-Car facility is also due to open in 2026.
- The $1.6 billion Link Union Station project, led in pre-construction by Flatiron Dragados of Grupo ACS/Hochtief, will begin site work in 2026 to add run-through tracks that could enter early operation by 2031.
- Caltrans has tapped Skanska and California Engineering Contractors for the $706 million Vincent Thomas Bridge redecking, with construction starting in late 2026 and completion slated for early 2028.
M&A activity ticks up across the construction industry
Construction firms, contech providers and consultants have all made recent deals to combine forces or expand into new markets.
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US statistical agencies are expected to quickly release delayed economic data if the government reopens this week, but key October and November reports may not be available before the Federal Reserve's December policy meeting. The shutdown, which began October 1, has disrupted data collection and processing, creating uncertainty for policymakers.
Skanska has reported an 8% increase in Q3 operating income, driven by strong construction performance in the US, particularly in data center and infrastructure projects. However, the company faced significant write-downs in its commercial property development unit, especially in the US office market. Skanska's construction backlog remains high, with 22 months of work in the US, although it has slightly decreased from the previous quarter.
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Full Story: Construction Dive |
US Steel has announced a $14 billion domestic investment plan through 2028, with $11 billion allocated for facility improvements. The initiative, supported by Nippon Steel, aims to create more than 100,000 jobs and achieve $2.5 billion in annual synergy benefits by 2030. Recent projects include a $75 million investment in Alabama and $300 million for a slag recycler and mill improvements.
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Full Story: Construction Dive/Manufacturing Dive |
Anthropic plans to invest $50 billion in US artificial intelligence infrastructure, starting with custom data centers in Texas and New York, developed in partnership with Fluidstack. The project is expected to create 800 permanent jobs and 2,000 construction roles, with the first sites operational by 2026. This move positions Anthropic as a significant player in AI infrastructure amid increasing focus on US technological sovereignty
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Full Story: CNBC Africa |
The White House has completed a review of the Environmental Protection Agency's proposal to redefine which waters are covered by the Clean Water Act, signaling that the proposal is ready for public release. The new rule is expected to reduce federal jurisdiction over wetlands and small streams, a move that could have major implications for water quality, flood management and the protection of endangered species.
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Full Story: E&E News |
More than half of 500 global construction and engineering executives recently surveyed by PwC have indicated plans to to significantly increase spending on AI and automation within the next three years, according to PwC's Future of Industrials Survey 2025. The survey notes that prefabrication and modular construction are becoming central to addressing labor shortages and cost volatility, while the growing use of technology is creating demand for technicians, analysts and robotics operators.
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Full Story: Construction Briefing |
The Los Angeles Board of Airport Commissioners has unanimously approved $1.5 billion to build 4.4 miles of elevated roadways at Los Angeles International Airport to separate airport-bound vehicles from local traffic. The "Automated People Mover and Roadways Project" is expected to be completed in phases, with the roads entering the airport finished before the 2028 Olympics and exiting roads by 2030. Critics argue the project is unnecessary due to lower passenger levels and may increase traffic, while supporters believe it will improve safety and efficiency.
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Full Story: LAist (Los Angeles) |
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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
