from Mark Smith, Advocate, California Builders Alliance
Households’ Financial Situation
Reuters reports the New York Federal Reserve Bank said Thursday that Americans’ views on their current and future financial situations, as well as expectations for future earnings and income, “deteriorated sharply” in April. The New York Fed’s latest Survey of Consumer Expectations found that respondents “projected slower gains in income and earnings in April relative to March, and for unemployment to rise and for it to be harder to find a job.” Survey respondents were also mixed on inflation, projecting “year-ahead inflation at 3.6%, unchanged from March, while the three-year-ahead expectation rose to the highest level since July 2022 at 3.2%, from March’s 3%.”
Oil Prices Remain Stable Amid Trade Developments
Reuters reports that oil prices remained stable early Friday after a 3% rise on Thursday. U.S. Treasury Secretary Scott Bessent will meet China’s Vice Premier He Lifeng to resolve trade disputes. The U.S. and Britain announced a trade deal reducing tariffs. OPEC+ plans to increase output.
U.S.-UK Trade Deal Boosts Stocks
The AP reports that U.S. stocks rose Thursday after a trade deal between the U.S. and U.K. was announced, lowering some tariffs. The S&P 500 increased by 0.6%, the Dow Jones by 254 points, and the Nasdaq by 1.1%. President Trump praised the agreement, which maintains 10% tariffs on U.K. products but reduces tariffs on automobiles. Talks with China are set for the weekend in Switzerland.
Proposed Trump budget boosts transportation, workforce
President Donald Trump's 2026 discretionary budget proposal includes $163 billion in nondefense spending cuts, significantly affecting programs that fund construction, such as the Environmental Protection Agency's State Revolving Funds and the Department of Housing and Urban Development's Community Development Block Grants. However, the budget increases funding for transportation projects, including an additional $824 million for the Federal Aviation Administration and $770 million for the Infrastructure for Rebuilding America grant program. The proposal also demonstrates "strong support for craft workforce development," says Brian Turmail from the Associated General Contractors of America. Full Story: Engineering News-Record (tiered subscription model)
White House budget proposal seeks EPA funding cuts
The White House's fiscal 2026 budget proposal seeks to cut the Environmental Protection Agency's budget by 54.5% to $4.2 billion, targeting significant reductions in funding for clean and drinking water state revolving funds, the Superfund program and other initiatives. However, it includes funding increases for some areas, such as programs that address drinking water on Native American reservations and after major disasters. Full Story: Bloomberg Law
DOL to stop enforcing 2024 independent contractor rule
The Department of Labor will stop enforcing a 2024 rule that made it difficult to classify workers as independent contractors. It will instead use a simpler standard based on "longstanding principles." The 2024 rule is still in effect for private litigation. Full Story: Fisher & Phillips
Dodge index up 0.9% in April thanks to data centers
The Dodge Momentum Index increased 0.9% in April, driven by a surge in data center projects, according to Dodge Construction Network. Commercial planning rose 3.3%, while institutional planning fell 4.2%. Notable projects include a data center campus in Virginia and major institutional projects in Massachusetts, Oregon and Hawaii. Full Story: Dodge Construction Network
Specialty trades anchor construction job growth in April
Specialty trade contractors were the primary driver of the 11,000 jobs added by the construction industry in April, according to the Bureau of Labor Statistics. Specialty contractors added 9,000 jobs, with 4,900 in nonresidential work and 4,100 in residential. Building contractors added 2,900 jobs, while the heavy and civil engineering sector lost 500 jobs. Full Story: Engineering News-Record (tiered subscription model)
BIM skills shortage weakens construction labor pool
A shortage of building information modeling skills is worsening the construction labor shortage, says Diasphere CEO Erik Valenzuela. Educational programs for BIM are limited because of a lack of qualified instructors, creating a cycle that hampers skill development. Developing in-house training programs is the most effective strategy for companies to address this challenge. Full Story: Building Design+Construction
Granite optimistic about infrastructure funding
Granite Construction reported a wider net loss of $33.7 million in Q1 compared to $31 million a year ago, but revenue rose 4% to $699.5 million, and backlog increased to $5.74 billion. CEO Kyle Larkin noted potential cost increases due to tariffs but expressed optimism about federal funding, particularly from the Infrastructure Investment and Jobs Act. Larkin is also optimistic about the possibility of new legislation to continue infrastructure funding after IIJA expires. Full Story: Construction Dive
Houston hospitals rush projects amid tariff concerns
Houston hospital builders are accelerating construction projects in response to proposed tariffs that could increase supply costs. Preston Hodges of McCarthy Building says clients are speeding up purchasing to avoid cost escalation, noting that prices are unlikely to decrease. McCarthy is working on major projects, including the new Lyndon B. Johnson Hospital campus. Full Story: KHOU-TV (Houston)
Trump order aims to speed US drug factory construction
President Donald Trump has signed an executive order directing the Food and Drug Administration to streamline regulations for new drug manufacturing facilities in the US, aiming to accelerate construction and boost domestic supply. The order also increases inspections of overseas plants, potentially funded by higher fees. Major pharmaceutical companies have announced $170 billion in US manufacturing investments this year, partly to avoid potential new tariffs. However, the industry faces challenges from potential new tariffs and drug pricing rules. Full Story: BioPharma Dive
Contractors innovate for Construction Safety Week
During Construction Safety Week, leaders from major construction companies have highlighted innovative practices to enhance worker safety. Granite Construction's STCKY initiative addresses high-energy hazards. Fluor's Safer Choices Together focuses on decision-making. DPR Construction uses AI to predict jobsite risks. Clayco emphasizes early-day safety with "The Golden Hour." Consigli leverages drones and AI for virtual safety inspections. Robins & Morton promotes a human performance philosophy to identify system weaknesses. Full Story: Construction Dive
Dave Garske fights the mental health stigma
Construction industry veteran Dave Garske has become an advocate for mental health awareness after losing his brother Greg to suicide in 2022. Construction workers are six times more likely to die by suicide than from workplace accidents, and the industry has the second-highest suicide rate among all sectors, according to statistics. Garske works with organizations such as Lines for Life and the Construction Suicide Prevention Partnership to encourage workers to express their feelings and seek help. Full Story: KPTV-TV (Portland, Ore.)
Turner Construction starts subsidiary for prefab
Turner Construction has launched xPL Offsite, a subsidiary providing prefabrication and modular construction services, leveraging Turner's global supply chain and skilled labor force. Turner officials say they want to make xPL Offsite a "household name" in the prefabrication industry by targeting sectors such as advanced technology and healthcare, where large projects with repeatable systems benefit from offsite manufacturing. Full Story: Building Design+Construction
Terminal upgrade complete at Oakland, Calif., airport
Turner Construction has completed a major renovation of the Terminal 1 check-in lobby at Oakland Airport, featuring new finishes, LED lighting and redesigned check-in counters to enhance the passenger experience. The design was done by HNTB, and 75% of the rest of the work done by Very Small Business Enterprises and 30% of the workforce drawn from Alameda and Contra Costa counties. Full Story: Port of Oakland
Calif. highway project might get environmental exception
California Assemblymember Lori Wilson has introduced a bill that would allow an environmental exception for a project to widen a 10-mile stretch of Highway 37 between Mare Island and Sears Point, one of the state's most congested roadways. The project, which has been delayed by funding issues and the presence of protected wildlife, aims to add two lanes in each direction. Full Story: CBS News
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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
