from Mark Smith, Advocate, California Builders Alliance
Caltrans reaches transportation contract milestone
The California Department of Transportation reports a record $15 billion in ongoing construction projects, with a significant portion aimed at smaller companies. This growth is supported by state and federal funding, including California's Road Repair & Accountability Act and the federal Infrastructure Investment & Jobs Act. Caltrans completed $306 million in work over the past month, with payments to contractors increasing significantly compared to last year. Full Story: Equipment World
Trades anchor construction job growth in Sept.
Construction employment increased by 25,000 jobs in September, continuing a trend of steady growth in the industry, according to the Bureau of Labor Statistics. Specialty trade contractors contributed the most to this rise while nonresidential building construction saw a decline. The industry's unemployment rate slightly increased to 3.7%. "The persistently low unemployment rate for jobseekers with construction experience and the high level of job openings suggest the industry would hire even more workers if they could find enough qualified applicants," said Ken Simonson, chief economist for the Associated General Contractors of America. Full Story: Engineering News-Record (tiered subscription model) Associated General Contractors of America
Crane index declines 5% in third quarter
Rider Levett Bucknall's Crane Index for North America reported a 5% decrease in crane activity in the third quarter compared to the first quarter, with residential and mixed-use projects accounting for 69% of the tower cranes. Despite high office vacancy rates, construction remains robust, with cities like Chicago and Phoenix seeing crane count increases, while Boston, San Francisco and Seattle experienced declines. Full Story: Crane & Transport Briefing
Interest rate cuts drive down project abandonments
ConstructConnect's latest report reveals a significant 49.8% drop in construction project abandonments in September, attributed to falling interest rates and a positive economic outlook. Despite this, the Project Stress Index rose by 16.7% due to a 9.8% increase in projects put on hold. Chief economist Michael Guckes notes that while the index is higher than recent months, it remains within historical norms. Private and public sectors are seeing reduced stress levels, with optimism around lower interest rates driving improvements. Full Story: Construction Dive
Upcoming Supreme Court cases affect construction
The Supreme Court's 2024 session includes cases with major implications for construction, such as San Francisco v. EPA, where justices will decide if Clean Water Act permits must include clear, specific guidelines for wastewater discharge. Additionally, the court will hear Seven County Coalition v. Eagle County Colorado, which will focus on whether agencies can mandate further environmental reviews for projects beyond their regulatory authority. Full Story: Engineering News-Record (tiered subscription model)
Port worker strike ends, but concerns persist
Dock workers may have only been on strike for three days before reaching a deal that raises average wages from $63 an hour from $39 an hour, but there is still an extensive cargo backlog to clear. Moreover, there is still uncertainty regarding whether the dock workers union and the Maritime Alliance can reach a permanent deal by mid-January. Crisis leadership expert Rob Weinhold notes the threat of automation still worries the union representing the dock workers. Full Story: WBFF-TV (Baltimore) The Economic Times (India)
Adoption of electric equipment remains slow
Despite successful pilot programs, the adoption of electric construction equipment in the US has been slow, but a new coalition aims to promote wider use. Launched by the New York City Mayor's Office and C40 Cities, the North American Electric Construction Coalition seeks to unite cities, industry groups, and agencies to reduce greenhouse gas emissions and noise pollution through electric construction equipment, with cities like New York, Austin, and Montreal leading the charge while Skanska's pilots show promising results in lowering emissions and costs. Full Story: Engineering News-Record (tiered subscription model)
Opinion: The case for embracing Gen Z in construction
Fulton Cure, a consultant at Well Built Construction Consulting, argues that the generational gap in the construction industry and the increased value of modern construction software are good reasons to embrace Gen Z. Cure emphasizes the need for mutual respect and adaptability, urging construction executives to embrace new approaches and methods, while younger managers should appreciate the wisdom of established practices for effective communication and job execution. Full Story: Construction Dive
AGC takes action on confusing WOTUS rule
The Biden-Harris Administration has been implementing the Waters of the United States conforming rule for one year, but implementation has been a challenge for regulators and industry alike. Meanwhile, AGC’s legal challenge to the 2023 rule continues, and the rule remains on hold in 27 states. The most recent legal filing applies recent Supreme Court rulings on Chevron deference to the case. Learn more.
Column: How GCs can start getting ready for tax season
General contractors should start preparing for the 2025 tax filing season by reviewing current projects to determine which will reach 95% completion by year-end, as this impacts taxable income, and consider deferring or accelerating project completion based on tax rate fluctuations, writes certified accountant Anita Mohamed. Contractors should evaluate potential tax savings from state pass-through entity elections and bonus depreciation phase-outs, and prepare for upcoming tax law changes before 2025, especially potential expiration of state and local tax caps.Full Story: Construction Dive
Walmart takes concrete 3D printing to new heights
Walmart recently partnered with Alquist, a company that specializes in concrete 3D printing, to build an 8,000-square-foot addition to its facility in Athens, Tenn., marking what is said to be the biggest 3D-printed commercial structure in the US. The walls, reaching nearly 20 feet high, were built for Walmart's Online Pickup and Delivery program and represent a significant advancement in 3D concrete printing technology. The project highlights Walmart's commitment to faster construction, technological innovation and environmental benefits, while also providing Alquist valuable insights into refining the 3D printing process. Full Story: Daily Commercial News (Ontario)
Advanced controls make upgraded dozers more productive
Companies like Case, Caterpillar, Develon, John Deere, Komatsu and Liebherr are enhancing dozers with features such as electrohydraulic controls, 2D/3D machine control and improved visibility to boost productivity and ease operator use. These advancements, seen in models like the Case M Series, Cat D8 and Develon DD130, offer customizable operator settings, intelligent machine control and optimized designs for various site conditions.
Full Story: Equipment World
CBRE report explains slowdown in life sciences sector
A CBRE report highlights a cooling trend in life sciences construction, with developers delaying new projects until tenants are secured. The cautiousness is due to oversupply and a significant rise in construction costs, which have increased by 20% to 25% since before the pandemic. The sector saw a peak in construction activity in 2023, but unleased space stands at 72%, indicating a market correction. Office-to-lab conversions have decreased, further contributing to the slowdown. Full Story: Construction Dive
EPA mandates 10-year lead pipe removal
Today, President Biden will announce a lead-pipe-removal rule eliminating extended timelines for cities such as New York City, Detroit and Chicago that have many lead lines. The goal is that by 2037, most if not all lead pipes will be removed nationwide. The mandated 10-year compliance rule officially begins in 2027. Full Story: The Hill Bloomberg Law Bloomberg
Webcor gets San Francisco redevelopment past first phase
The first phase of work on San Francisco's Mission Rock redevelopment is done after Webcor completed work on a 23-story mixed-use tower. The tower features greywater recycling and a sky deck that enhances urban biodiversity. Full Story: Building Design+Construction
Granite to stabilize perimeter dike at Calif. airport
Granite Construction has secured a $34 million contract to enhance the seismic stability of the perimeter dike at San Francisco Bay Oakland International Airport. Keller North America provided a solution that will allow crews to use cement deep soil mixing to strengthen 4,200 feet of the dike and protect the airport from water intrusion during seismic events. The project is expected to begin in early 2025 and should be completed by the third quarter of 2026. Full Story: Construction Briefing
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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
