Commercial planning catalyzes Dodge Momentum Index drop
The Dodge Momentum Index declined by 5.3% in October. The downturn was driven by a 6.7% drop in commercial planning and a 2.0% decrease in institutional planning, reflecting a slowdown across multiple sectors. Full Story: Dodge Data & Analytics
Commercial construction could benefit from Fed cut
The Federal Reserve's recent 0.25 percentage point rate cut--the second in recent months--has been welcomed by construction executives as a positive step toward revitalizing commercial construction activity. While the immediate impact may be limited, the move is expected to foster a more supportive lending environment, encouraging developers to resume previously shelved projects and potentially spurring growth in sectors like hotels and large-scale developments. Full Story: Construction Dive
Private sector funds dominate manufacturing projects
August's put-in-place construction spending report from the Census Bureau shows an overall rise in US construction spending, up by 7.6% year-to-date, with residential and nonresidential sectors growing at 7.2% and 8.0%, respectively. Private sector funds dominate residential and manufacturing projects, with 98.8% of residential and 99.6% of manufacturing spending coming from private sources, while public funds are crucial for infrastructure like highways and public safety, where government spending accounts for nearly all the funding. Full Story: Daily Commercial News (Ontario)
Multifamily market still not looking strong
The latest Yardi Matrix forecast reveals a decline in new apartment units across the US, with completions expected to drop from 554,288 units in 2024 to just 326,911 by 2027. Key markets like Dallas, Houston, Austin and Nashville are experiencing significant slowdowns, reflecting broader trends in the multifamily construction pipeline, which has seen substantial reductions since last year. Full Story: REJournals
ConstructConnect: Project stress index rises slightly
The construction industry experienced a slight increase in market stress in October, with the Project Stress Index rising 0.8% from September, according to ConstructConnect. Private sector projects on hold decreased by 56%, while public sector projects on hold fell by 17.7%. "Both [public and private] sectors appear to be benefiting from falling interest rates and an overall positive outlook for the economy," says Michael Guckes, chief economist at ConstructConnect. "Many believe a 'soft landing' to be within the Fed's reach." Full Story: Construction Dive/ConstructConnect
Trump presidency may alter OSHA heat safety rule
Legal analysts predict that the Trump administration might discontinue OSHA's heat safety rule, which is still in the public comment phase. The rule proposes comprehensive safety measures for high-heat conditions but faces criticism for being overly complex. However, existing OSHA programs and legal obligations ensure that employers must still address heat-related hazards to protect workers. Full Story: Construction Dive
Oxford Economics: Trump will boost short-term construction
Oxford Economics predicts that President-elect Donald Trump's fiscal policies, including tax cuts, interest rate adjustments and increased federal spending, could initially boost private construction but may slow down by 2026 due to inflation and higher debt. Reduced immigration is expected to exacerbate labor shortages in construction and lower housing demand, while increased tariffs might boost investment in southeast Asian manufacturing and warehousing but could invite retaliatory tariffs, potentially stalling certain construction projects in the US. Full Story: Construction Briefing
Construction industry needs women to fill labor gap
The construction industry is grappling with a severe labor shortage, needing more than 500,000 workers needed to fulfill record-high project demands, according to one estimate. To bridge this gap, industry leaders are pushing initiatives to actively recruit women, who currently represent only 11% of the workforce, by implementing targeted outreach, partnerships with educational institutions and improved workplace policies like mentorship programs, flexible hours and on-site childcare. These actions not only aim to expand the talent pool but also to provide women access to well-paying, sustainable careers. Full Story: For Construction Pros
Funding infrastructure gains support at the polls
Many US localities had infrastructure funding initiatives on the ballot this month. The American Society of Civil Engineers created a chart listing them by state, their success with voters, whether the ASCE supported the initiative and initiative details. Full Story: American Society of Civil Engineers
Tutor Perini may seek fewer megaprojects amid backlog
Tutor Perini is taking stock of its $14 billion backlog and will likely pause bidding on multiyear megaprojects valued at $500 million or more for the time being, CEO and chair Ron Tutor said during the company's third-quarter earnings call. "It's a matter of [our subsidiaries'] capacity in-house. Do they have the people? Do they have the resources? If they do, we don't hesitate to support them. If we don't, we turn off the tap and say you've got an adequate backlog with significant cash flow and major earnings. Go out and deliver it, [then] we'll talk," Tutor said. Full Story: Construction Dive
Can low-carbon concrete hold up on highways?
Carbon Upcycling, the Minnesota Department of Transportation and the National Road Research Alliance have completed a three-year study on low-carbon cement that highlights its potential as a drop-in solution for carbon reduction in highway concrete. The study's results show that Carbon Upcycling's CO2-enhanced mix reduced cement content by 12.5% while increasing concrete strength by up to 32% after 56 days, offering a viable pathway to lower the carbon footprint of infrastructure without compromising durability. Full Story: Canadian Manufacturing Online
$3.4B in IIJA grants announced on law's 3rd anniversary
On the third anniversary of the Infrastructure Investment and Jobs Act, the Biden administration announced more than $3.4 billion in grants to enhance passenger rail, improve road safety, modernize ports and promote sustainable construction materials. To date, the law has funded more than 66,000 projects nationwide, leading to the repair of 196,000 miles of roads, modernization of 11,400 bridges and upgrades at 1,500 airports, among other achievements. The law's progress is outlined in a new video. Full Story: Department of Transportation
VDC leader at McCarthy envisions tech convergence
Alex Belkofer, senior director of virtual design and construction at McCarthy Building Cos., sees a future in which AI, digital twins and BIM converge to transform the construction industry, though he advises a gradual, "bite-sized" approach to adopting these technologies. He emphasizes the need for high-quality, well-curated data to support AI applications and is optimistic about AI's potential to enhance workflows rather than replace jobs, positioning BIM and digital twins as vital components in the evolution of construction technology. Full Story: Construction Dive
AI can help level playing field in construction
Artificial intelligence is transforming construction by bridging the skills gap, increasing productivity and enabling digital growth across projects, from design to safety and sustainability, writes Amit Puri from Autodesk. With 36% of industry leaders recently surveyed by Autodesk using AI to supplement workforce shortages, AI not only supports leaner teams but also equips smaller firms to compete by providing access to advanced tools previously reserved for larger players. Full Story: TechRadar
L.A. will soon build $740M wastewater treatment plant
Los Angeles is set to begin a $740 million project to convert wastewater into drinking water at the Donald C. Tillman Water Reclamation Plant. The project, expected to be completed by 2027, will produce 20 million gallons of drinking water daily, serving 250,000 people. Full Story: Los Angeles Times (tiered subscription model)
Nearly $800M accepted for LA Metro extension
The construction of the A (Gold) Line extension from Pomona, Calif., to Claremont and Montclair took a major step forward as the Gold Line Foothill Extension Construction Authority accepted nearly $800 million in funding from LA Metro, with an additional $80 million from San Bernardino County. The extension, expected to be completed by 2030, will mark the first LA Metro train service crossing into San Bernardino County, providing a critical connection for commuters between the Inland Empire and Los Angeles County while addressing housing and transit needs in the region. Full Story: San Gabriel Valley Tribune (Monrovia, Calif.)
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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
