Capitol Update 11.28.2025

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from Mark Smith, California Builders Alliance

Construction starts up 21.1% in on megaproject activity

Total construction starts rose 21.1% in October, reaching a seasonally adjusted annual rate of $1.53 trillion, according to Dodge Construction Network. Nonresidential building starts increased 17.9%, driven by data centers, manufacturing and LNG projects, while residential starts fell 15.4%. Nonbuilding starts surged 59.4%, led by utilities.

Full Story: Dodge Construction Network

 

 

BLS: Construction adds 19K jobs in September

The construction industry added 19,000 jobs in September, a significant turnaround from a loss of 7,000 jobs in August, according to the Bureau of Labor Statistics. The increase was driven by gains across all sectors, including 4,200 jobs from building contractors, 4,900 from heavy and civil firms, and 10,300 from specialty contractors. However, residential specialty trades lost 800 jobs, while nonresidential specialty trades gained 11,100. Despite this positive news, the industry has added only 2,000 jobs since March, with most of the weakness in the residential sector.

Full Story: Engineering News-Record (tiered subscription model)

 

 

Construction input costs up 3.2% as metals, diesel rise

The producer price index for materials and services used in nonresidential construction increased 0.2% in September and 3.2% year over year, driven by rising costs for metals, diesel and concrete products, according to the Associated General Contractors of America. "Persistent input-price pressure, even when the increases are modest, creates a stop and go rhythm in procurement and production instead of a steady flow contractors and suppliers need," says Macrina Wilkins, senior research analyst at AGC.

Full Story: Associated General Contractors of America

 

Shutdown spurred public construction project abandonments

The federal government's shutdown in October caused a rise in construction project stress, according to ConstructConnect's Project Stress Index. The index increased by 1% from September to October, primarily due to an 8.5% increase in bid date delays and a 45.8% surge in public project abandonments. However, the index remains below the mid-year spike caused by post-Liberation Day tariffs, indicating resilience in the construction market.

Full Story: Construction Dive

 

 

Cities brace for post-pandemic financial challenges

US cities are bracing for a challenging fiscal environment as federal aid from pandemic-era programs winds down, according to a National League of Cities survey. General fund spending grew by 7.5% in fiscal 2024, but is expected to slow to 0.7% in fiscal 2025, with revenue growth projected to decline 1.9%. City finance officers are less confident about meeting financial needs amid policy uncertainty, inflation and economic shifts.

Full Story: Construction Dive

 

 

AI-powered cameras aid in US road maintenance

Cities and states across the US are using artificial intelligence-powered dashboard cameras to monitor and maintain road conditions, addressing a $2.1 trillion repair backlog. Hawaii has distributed 1,000 cameras to reduce traffic fatalities, while San Jose, Calif., uses AI-equipped vehicles to detect potholes and damaged guardrails. While privacy and cost remain challenges, the technology could reduce inspection costs by 70%.

Full Story: WebProNews

 

 

Lawmakers mull liability shield for contractors over PFAS

Lawmakers are considering ways to shield contractors from potential liability under the Comprehensive Environmental Response, Compensation, and Liability Act related to the removal and remediation of perfluoroalkyl and polyfluoroalkyl substances. The Environmental Protection Agency in April designated two types of PFAS as hazardous, which has raised concerns among construction and engineering firms as well as water and wastewater utilities.

Full Story: Engineering News-Record (tiered subscription model)

 

 

Digital collaboration transforms construction projects

Global construction is at a pivotal moment, with trillions being invested in infrastructure and digital assets. However, the industry's reliance on outdated tools like email and spreadsheets hampers productivity. Recent innovations in construction technology, such as platforms that integrate 2D and 3D workflows, are addressing these challenges, enabling better decision-making and project management. Early adopters are seeing significant benefits, including faster issue resolution and reduced delays.

Full Story: For Construction Pros

 

 

US skips COP30, rolls back environmental rules

The Trump administration has introduced significant environmental rollbacks while the UN's COP30 climate summit is taking place, including plans for new oil drilling off California and Florida, weakening the Endangered Species Act and limiting the Environmental Protection Agency's authority over wetlands and streams. The proposals have drawn bipartisan criticism, with California Gov. Gavin Newsom and Sen. Rick Scott, R-Fla., opposing the drilling plans.

Full Story: Yahoo

 

 

Water becomes key in business location decisions

As water scarcity becomes a critical factor in business location decisions, companies are increasingly integrating water management into their overall business strategies. Robert Kimball, industrial process water sector leader at WSP, highlights the importance of water reuse, advanced treatment technologies and the water-energy nexus in achieving sustainability goals. Kimball emphasizes the need for a fit-for-purpose approach to water treatment to minimize costs and carbon emissions.

Full Story: The Construction Broadsheet

 

 

Study: VR training can improve construction safety

A study published in the Journal of Management in Engineering suggests that virtual reality training can significantly improve construction site safety by offering immersive, hands-on simulations. The research compares VR training, VR observer training and traditional paper-based methods, finding that VR-based approaches enhance task performance, intrinsic motivation and safety protocol retention.

Full Story: American Society of Civil Engineers

______________________________________________

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

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