from Mark Smith, Advocate, California Builders Alliance
Senate spars on permitting reform
Republicans, led by Sen. Shelley Moore Capito, R-W.Va., used a recent hearing to advocate for expanding categorical exclusions and limiting judicial reviews in the federal permitting process, while Democrats, led by Sen. Sheldon Whitehouse, D-R.I., emphasized the importance of judicial oversight and interagency coordination. In a separate hearing, Steven Bradbury, nominated by President Donald Trump for deputy Transportation secretary, advocated permitting reform and funding freezes for Biden-era infrastructure during his confirmation hearing. Full Story: E&E News Broadband Breakfast Axios
Trump may align with Biden-era Buy America policies
The Biden administration bolstered domestic manufacturing through Buy America policies, particularly via the Infrastructure Investment and Jobs Act. The Trump administration is expected to maintain these policies, despite freezing IIJA funding, and has already introduced tariffs on steel and aluminum, raising concerns from the National Utility Contractors Association about potential cost increases for infrastructure projects. Full Story: Construction Dive
FMI: Construction spending to slow, but grow, through 2028
Construction and engineering spending is expected to grow at a slower pace of 2% to 3% annually through 2028 after expanding more than 40% since 2020, according to FMI. The forecast anticipates a recession in 2025 and highlights the impact of legislation such as the Infrastructure Investment and Jobs Act. Key trends include the rise of data centers, sustainability efforts, labor challenges and digital transformation. Full Story: Building Design+Construction
Skanska reports record backlog, strong US demand in 2024
Skanska reported strong financial results for 2024, driven by US infrastructure and data center projects. Revenue rose 13% to $17.3 billion, and operating income increased 121% to $687 million. The order backlog reached a record high, with US bookings up 25%. The company plans to focus on office development, life sciences and rental housing in 2025. Full Story: Construction Briefing
4,000 construction jobs added in January
The US construction sector added just 4,000 jobs in January, continuing a trend of slowed hiring, according to the Bureau of Labor Statistics. Specialty trade contractors added 3,500 jobs, while heavy and civil engineering saw a decline of 2,300 positions. Nearly 80% of firms surveyed by the Associated General Contractors of America report difficulty finding workers and some workers are not showing up due to fears of increased immigration enforcement. AGC CEO Jeffrey Shoaf urges federal investment in construction training and work authorization programs to meet demand. Full Story: Engineering News-Record (tiered subscription model)
Granite CEO confident in IIJA funding despite freeze
Granite Construction CEO Kyle Larkin has expressed confidence in continued funding from the Infrastructure Investment and Jobs Act, despite a temporary freeze on government grants by the Trump administration. Granite reported a 60% increase in fourth-quarter net income, although backlog decreased by 4.5% for the year. Larkin noted a strong market, with state transportation budgets at near-record levels, and expects to mitigate potential inflation risks. Full Story: Construction Dive
USACE puts hundreds of projects on permitting fast-track
Enbridge's Line 5 tunnel project under Lake Michigan, Gulf Coast liquefied natural gas export facilities and multiple gas-fired power plants are among 600-plus energy and infrastructure projects the US Army Corps of Engineers has listed as eligible for expedited reviews under President Donald Trump's energy emergency declaration. The move, applauded by industry leaders, is likely to attract a wave of litigation. Meanwhile, Senate Democrats plan to force a vote next week to overturn the energy emergency order. Full Story: E&E News Yahoo
Global hotel construction pipeline hits record high in Q4
The worldwide hotel construction pipeline reached a record high in the fourth quarter with 15,820 projects and 2.44 million rooms, according to Lodging Econometrics. The US and China dominate, accounting for 64% of projects, while India shows significant growth, with projects up 35% year over year. Full Story: Hotel Business (tiered subscription model)
Where does Trump's DOL pick stand on the PRO Act?
Lori Chavez-DeRemer emphasized her ability to represent both workers and employers during her confirmation hearing for labor secretary. She addressed concerns about her previous co-sponsorship of the PRO Act, emphasizing her support for American workers while respecting the legislation's imperfections. She clarified that as a nominee, her role would be to enforce laws, not create them, leaving legislative decisions to Congress. Full Story: Construction Dive
Federal Reserve Bank of Atlanta President Still Anticipates Two Rate Cuts This Year
Bloomberg reports that Federal Reserve Bank of Atlanta President Raphael Bostic “said he expects the US central bank will lower interest rates twice in 2025, though uncertainty around that projection has risen. ‘While that’s my baseline expectation, there’s a lot that is going to happen that could influence that really in both directions,’ Bostic said Thursday on a call with reporters.” According to Bloomberg, “In his discussion with the media, the Atlanta Fed chief emphasized the questions officials are confronting over the policy intentions of the new Trump administration. ... ‘Right now, there is a lot of uncertainty about where some important factors are going to land,’ he said, mentioning there may be changes to trade, immigration, energy and fiscal policies.”
ASSP updates safety standard for construction, demolition
The American Society of Safety Professionals has released a voluntary standard, ANSI/ASSP A10.2-2025, to guide safety training in construction and demolition. The standard addresses hazards that cause injuries and fatalities and covers training types such as new hire, site safety and supervisor leadership. Full Story: Construction Equipment Guide
Mission-Ready: Why Veterans are a Perfect Fit for Construction Careers🎖️
Discipline. Leadership. Problem-solving. Veterans have what it takes to excel in construction—but are we doing enough to bring them into the industry and building the culture they need to succeed? Listen to our latest #ConstructorCast episode as experts break down the path from service to the jobsite. 👉 Listen now!
Duffy wants high-speed rail to be more like Brightline
Transportation Secretary Sean Duffy has requested a review of the California High-Speed Rail Authority's project, citing significant cost overruns and delays. The project, intended to connect Los Angeles and San Francisco, is now estimated to cost $106 billion, far exceeding the original $33 billion estimate. However, Duffy has praised Brightline West's $12 billion project to link Los Angeles and Las Vegas, highlighting its timely progress and expected completion by 2028. Full Story: KABC-TV (Los Angeles) (2/20), The Californian (Salinas, Calif.) (tiered subscription model)
San Diego wastewater projects advance amid rising costs
San Diego and East County are making progress on wastewater-to-drinkable-water projects, but costs have risen significantly. San Diego's Pure Water project requires an additional $50 million for pipeline and rehabilitation work, which the City Council recently approved, while East County's Advanced Water Purification project is nearing a milestone with a pipeline to Lake Jennings. Full Story: The San Diego Union-Tribune (tiered subscription model)
Granite secures contract for part of $450M project
Granite Construction has been awarded a $78 million contract by the California Department of Transportation to reduce congestion in the SR 55/SR 91 corridor in Orange County. The project, the first a larger $450 million, three-segment effort, includes rebuilding a 320-foot bridge, constructing retaining and sound walls, and upgrading drainage and electrical systems. Full Story: The Construction Broadsheet
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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
