Capitol Update 5/2/25
Investors reassess US assets amid trade policies
Investors are reevaluating US assets 100 days into President Donald Trump’s new administration, driven by concerns over trade policies and their impact on economic stability. Although significant rallies have occurred, the S&P 500 has fallen 8% and the dollar index has dropped 9% since Trump’s inauguration. Some investors are diversifying into international assets and gold, fearing lasting damage. However, others believe the pullback from US assets will be temporary due to the market’s size and strength. Full Story: Reuters Bloomberg CNBC
US GDP growth slows as tariffs, trade deficit weigh
The US economy experienced a significant slowdown in the first quarter of 2025, with GDP growth projected at 0.4%, the weakest in nearly three years, as consumers pull back and the trade deficit widens. The initial impact of President Donald Trump’s tariffs has contributed to the economic stagnation, though business investment in equipment, particularly commercial aircraft, has been a bright spot. Full Story: Bloomberg
Economic uncertainty affects construction job openings
There were 38,000 fewer construction job openings in March than there were in February, and 90,000 fewer openings year over year, according to the Bureau of Labor Statistics. Regional job growth was uneven, with the most significant increase in the D.C. metro area and the largest loss in Los Angeles. With roughly half of metro areas seeing an increase in construction employment year over year, Ken Simonson, chief economist at the Associated General Contractors of America, thinks investors are cautious due to unresolved tariff rates and economic uncertainty. Full Story: Engineering News-Record (tiered subscription model)
Report: Cost control challenges top concerns in AEC
Cost control and talent shortages are the top challenges for architecture, engineering, construction and operations professionals, according to Autodesk’s Make and Design Report 2025. The report notes a decline in confidence in artificial intelligence, with only 68% seeing it as beneficial, down from 80% last year. However, 64% of leaders plan to increase investments, and 95% are pursuing sustainability initiatives. Full Story: Construction Briefing
Komatsu mulls US price hikes amid tariffs, strong yen
Komatsu is considering raising prices in the US to counteract the impact of tariffs and a stronger yen, as it projects a 27% drop in operating profit this fiscal year. Tariffs are expected to cost the company $976 million, with the North American market accounting for 25% of revenue. Full Story: Bloomberg
Why tariffs shouldn’t make CRE contractors panic
Current market conditions in the commercial construction sector may help mitigate the impact of new tariffs, writes Robert Barone, director of construction services at Partner Engineering and Science. Barone argues that a slowdown in construction at the end of 2024 has resulted in reduced demand and improved contractor capacity, potentially stabilizing material prices. Additionally, shifts in procurement strategies post-COVID have led many developers to favor domestic and alternative international sources over China, lessening reliance on tariff-affected imports. Full Story: GlobeSt (free registration)
The tariff storm might be settling
Experts say the Trump administration’s tariff policies have disrupted global construction supply chains by inflating material costs, delaying projects and triggering trade realignments. However, Brett Helm, the manager of Graycor Construction’s Southwest divisionm, says tariff concerns are diminishing as demand for data centers and chip manufacturing grows. “I know if you would have asked me this question three or four weeks ago, I probably would give you a different answer” Helm said. “But right now, we’re actually getting a lot of competitive numbers from our subcontractor community.” Full Story: Construction Dive World Construction Network
AGC: “Too early” to interpret EO on apprenticeships
President Donald Trump has signed an executive order to expand registered apprenticeships across various industries, directing the departments of Labor, Commerce and Education to review workforce programs and create a plan to exceed 1 million apprentices. The construction sector, which has the largest share of active apprentices, could benefit, but the order does not specify focus areas, raising questions about the impact on union versus nonunion programs. I think it’s too early to tell what the administration is doing and where they’ll land on this,” says Jim Young from the Associated General Contractors of America. Full Story: Engineering News-Record (tiered subscription model)
Water industry pushes for IIJA reauthorization
Water and wastewater industry stakeholders have urged the Senate Environment and Public Works Committee to reauthorize the Infrastructure Investment and Jobs Act, which is set to expire in 2026, citing the law’s importance for funding infrastructure upgrades. The hearing highlighted the need for increased funding for rural communities and addressed challenges such as PFAS contamination and cybersecurity risks. Full Story: Engineering News-Record (tiered subscription model)
Congress seeks EV fees to support Highway Trust Fund
The House Transportation and Infrastructure Committee has approved a measure to impose annual registration fees of $250 on electric vehicles and $100 on hybrid vehicles to support the Highway Trust Fund, whose spending has outpaced revenue from fuel taxes. The fees are expected to generate more than $38 billion over a decade. Full Story: Engineering News-Record (tiered subscription model)
Mortenson exec on AI: Put people first, then innovate
Trent Mostaert, vice president of industrialization at Mortenson, emphasizes a people-first approach to adopting physical artificial intelligence, particularly in industrial-scale solar installations. Mostaert highlights the importance of understanding and optimizing the “heartbeat” of tasks before integrating AI, warning against automating processes without a thorough understanding of the technology. Full Story: Construction Dive
The “fatal four” is now the “fatal five”
Balfour Beatty has recognized live traffic as a fifth fatal risk in construction, aiming to mitigate the substantial hazards posed by vehicles in work zones. The initiative, announced ahead of Construction Safety Week 2025, includes advanced warning technology, enhanced visibility systems and legislative advocacy to improve safety. Full Story: Contractor Magazine
The US Green Building Council has introduced LEED v5, enhancing the green building standard to address decarbonization, human health and resilience. LEED v5 introduces customizable standards, allowing for project-specific adaptations across different global regions and market sectors. Full Story: Contractor Magazine
L.A. shifts $2.4B Olympic transit project to shuttles
The $2.4 billion Inglewood Transit Connector Project in Los Angeles has been restructured from a light-rail system to a shuttle bus network after opposition from local business leaders. The project, initially aimed at enhancing public transportation for the 2028 Olympics, will now focus on smart traffic technology and is expected to be completed by 2028. Full Story: Newsweek (tiered subscription model)
Anaheim, Calif., arena to undergo $1B renovation
The Honda Center in Anaheim, Calif., is set to undergo a $1 billion renovation. The privately funded project by the Samueli family, owners of the Anaheim Ducks, will include a new south entrance, upgraded food and beverage spaces, new suites and improved parking. The project, which has signed Hathaway Dinwiddie as the general contractor, is expected to be completed by 2027, coinciding with the development of the surrounding OC Vibe entertainment district. Full Story: Sports Business Journal
Steel framing rises at $1.3B airport project in Calif.
Steel framing is visible at Hollywood Burbank Airport as construction progresses on a $1.3 billion terminal to replace a 1920s terminal. The design-build project, led by Burns & McDonnell, Corgan, Holder, Pankow, TEC and CannonDesign, features a 355,000-square-foot building with 14 gates and modern amenities. Full Story: Urbanize Media