from Mark Smith, Advocate, California Builders Alliance
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Houston, St. Louis lead US cities in construction job growth |
A slight majority of US metropolitan areas increased construction employment from February 2025 to February 2026, led by the Houston area, according to the Associated General Contractors of America. St. Louis ranked second due to a combination of tornado recovery efforts, Boeing's expansion and infrastructure improvements. However, AGC is urging Congress to renew the highway and transit funding law by Sept. 30 to sustain job growth.
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Full Story: Associated General Contractors of America St. Louis Post-Dispatch KSDK-TV (St. Louis) KMOV-TV (St. Louis) |
A report by the Economic Policy Institute highlights the significant financial impact of worker misclassification in the construction industry. Construction workers lose about $20,000 annually due to misclassification, far more than workers in lower-wage industries. This practice distorts competition, giving firms that misclassify workers an unfair advantage. Brian Turmail of the Associated General Contractors of America emphasizes the need for clear rules to ensure fair competition and proper worker classification.
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Full Story: Construction Dive |
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The Architecture Billings Index from the American Institute of Architects reached 49.8 in March, the highest since early 2023 and close to the threshold of 50 that would indicate growth. "While billings could soon see positive growth for the first time in three years, ongoing economic and geopolitical challenges, such as the Iran conflict and labor shortages, pose significant risks to recovery," says Richard Branch, the AIA's chief economist.
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FMI's North American Engineering and Construction Outlook projects flat spending for 2026, with total engineering and construction spending expected to be just under $2.2 trillion after a 1.4% decline in 2025. While infrastructure, particularly water, wastewater and power, remains stable, eight out of 19 construction sectors are expected to decline because of high interest rates and global uncertainty.
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Full Story: For Construction Pros |
The National Council for Occupational Safety and Health has raised concerns about heat-related job site risks as it is "the most dangerous time of year for heat exposure." The council's "Dirty Dozen" report highlights companies with unsafe practices and calls for stronger safety enforcement from the Occupational Safety and Health Administration, which has extended its National Emphasis Program for heat hazards to 2031 but has not finalized a national heat standard.
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Full Story: Engineering News-Record (tiered subscription model) |
Robots are increasingly present in industries such as retail, manufacturing and food service, where they perform tasks such as inventory counting and burger flipping. However, robots excel primarily in controlled environments and are not yet capable of handling the unpredictability of most jobs. Bob Christopher, CEO of Richtech Robotics, notes that while robots can perform a range of tasks, the cost and technological limitations prevent widespread adoption.
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Full Story: Forbes |
Granite Construction has acquired Kenny Seng Construction, a Provo, Utah, based infrastructure contractor. The acquisition aligns with Granite's "home market" strategy, which involves supplying materials from its own yards for nearby infrastructure projects. Kenny Seng Construction, founded in 1985 and generating about $150 million in annual revenue, specializes in earthwork, site preparation, utility installation and concrete work. The company also operates a gravel pit, a recycling yard and a hard rock quarry with 1 million tons of annual production.
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Full Story: Construction Dive |
The cost of constructing combined-cycle gas turbine power plants has surged 66% since 2023, driven by data center demand for natural gas power, according to BloombergNEF. The cost per kilowatt of generating capacity has risen from less than $1,500 to $2,157, and construction takes 23% longer on average. Despite rising costs, companies such as Microsoft and Meta are investing in gas-fired facilities for data center operations.
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Full Story: DatacenterDynamics |
The future of the AI boom lies in clusters of small data centers requiring only 5 to 20 megawatts of power rather than massive facilities, says Pete Sacco, founder and CEO of PTS Data Center Solutions. Sacco says the shift toward inference work necessitates data centers closer to users to minimize latency, and that small data centers can be more adaptable in terms of power sources.
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Full Story: Construction Dive |
Trimble has integrated AI tool Claude with SketchUp, enabling users to generate 3D models using conversational prompts. This integration aims to simplify 3D modeling workflows and make the process more accessible to a wider range of users. The feature is available through Claude's connector settings, with users able to generate and export a limited number of models under a free entitlement before requiring a paid subscription.
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Full Story: Construction Briefing |
Alok Chanani of BuildOps writes about the transformative use of artificial intelligence in the trades, particularly in construction, where AI is viewed not as a job replacer but as a capability enhancer. Chanani notes that while some industries fear job losses due to AI, tradespeople are using AI to perform tasks more efficiently, exemplified by a technician diagnosing equipment issues quickly with AI's help. Chanani urges industries to shift their perspective on AI from cost-cutting to capability expansion, highlighting that 80% of commercial contractors believe AI is essential for competitiveness.
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Full Story: Construction Dive |
About $80 million in federal stormwater grants will help keep contaminants from waterways in small or financially distressed communities, according to the Environment Protection Agency's announcement of its Sewer Overflow and Stormwater Reuse Municipal Grant program. The largest allocation of $4.1 million will go to Virginia, followed by $3.8 million to California and $2.4 million to Florida.
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Full Story: Bloomberg Government Water Online |
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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
