Capitol Update 9/30/24
Treasury yields fall after Fed cut as jobless claims drop
After the Federal Reserve’s half-point interest-rate reduction, Treasury yields fell as unemployment data came in below expectations. The 10-year yield decreased slightly, reflecting a positive investor response to lower-than-expected initial jobless claims reported for last week amid a string of pivotal central bank decisions this week. Full Story: Axios MarketWatch (tiered subscription model) CNBC Barron’s
Aug. construction starts up 6%
Nonbuilding construction posted a 17% gain, leading the way as total construction starts climbed 6% in August to a seasonally adjusted annual rate of $1.2 trillion, as reported by Dodge Construction Network. Residential starts were up 5% for the month while nonresidential buildings eased 2%.Full Story: Dodge Data & Analytics
Construction jobs up across 39 states
As of last month 39 states had added construction jobs over the preceding 12 months, with 27 states and the District of Columbia adding jobs between July and August, according to a new analysis of US employment data by the Associated General Contractors of America. Texas, Florida and Michigan were the top gainers over the year, while among the states losing jobs Maryland was the worst, followed by New York and Oregon. Full Story: Daily Commercial News (Ontario)
Device detects tiny movements in composite materials
A device that uses a mirror linked to a thin fiber-optic cable can detect minute movements in composite materials that can indicate structural problems as they develop. The device developed by a researcher at the Missouri University of Science & Technology would be placed in the material during construction, providing a non-destructive way to monitor the structure’s health and indicate when rebonding is needed. Full Story: Construction Dive
AI to aid all phases of construction process
Artificial intelligence is poised to play a wide role in the construction industry, extending from planning with building information modeling through construction, allowing for fast, efficient decisions along the way, according to a new report from McKinsey. Separate research by PWC points to six steps for AI adoption: defining business applications, managing data, adopting technology, building teams, establishing processes and encouraging trust in AI. Full Story: GroundBreak Carolinas
$220.6M in federal funds go to 2 Calif. projects
Federal funds totaling $220.6 million are on the way for California’s planned Interstate 680 improvements and the Central Valley High-Speed Rail project, Sen. Alex Padilla, D-Calif., announced. Of the total, $166 million is designated to fill an I-680 express lane gap and convert another lane to express while $54 million will help fund a high-speed rail station for the Merced-Bakersfield California High-Speed Rail Interim Service. Full Story: Railway Track & Structures
USDOT Disadvantaged Business Enterprise has setback
The US Department of Transportation’s workforce participation goals have been set back with a court ruling that bars the minimum 10% dollar quota for federal contracts to go to women- and minority-owned firms. The ruling by the US District Court for the Eastern District of Kentucky applies only in Indiana and Kentucky but may inspire similar cases elsewhere. Full Story: Construction Dive
Utility equipment evolves to address excavation challenges
Excavation activity has increased due to funding from the Infrastructure Investment and Jobs Act, leading to more incidents of underground utility damage, with the reason frequently being a lack of 811 contact before digging. To address this issue, utility equipment and locating systems have evolved, with vacuum excavators and geographic information system mapping becoming essential tools for contractors. Full Story: For Construction Pros
Why construction is struggling outside of the US
The US construction industry has faced significant challenges, including high costs, labor shortages and a persistent threat of shrinking profit margins. Despite these issues, the sector shows resilience, with a 6% year-over-year increase in project starts through the first 8 months of 2024, the Dodge Momentum Index. In contrast, construction sectors in China, Germany, the UK, South Korea and New Zealand are struggling due to economic downturns and reduced investments. The US success is attributed to federal funding, economic resilience, onshoring trends, regional flexibility and technological innovation. And future construction activity is expected to benefit from the Federal Reserve’s recent rate cut. Full Story: Construction Dive
How Atlantic, Gulf Coast building codes stack up
Building codes become more important as weather events become more severe. To encourage rules that meet the challenge, the Insurance Institute for Business & Home Safety rates codes across 18 states on the Atlantic and Gulf coasts, with Virginia ranking just ahead of Florida. Full Story: Construction Business Owner
How robots are making gains in AEC
Robotic solutions are making only incremental progress across the AEC industry, although in some areas the gains are considerable, according to member network BuiltWorlds. “This year, we saw the highest levels of adoption in monitoring robotics and service/labor robotics, two of the four main categories we’ve identified in construction robotics,” writes report author Audrey Lynch, research analyst for BuiltWorlds. Full Story: Building Design+Construction
TRIP notes $198B backlog of rural road, bridge repair needs
US rural roads and bridges need $198 billion in repairs, including $97 billion for road rehabilitation, $53 billion for bridge repairs and $48 billion for roadway expansions, according to a new study from TRIP. Iowa, West Virginia and South Dakota top the list for poorest bridge conditions, while Rhode Island, New Mexico and Arkansas reportedly had the worst road conditions. Nationally, 8% of rural bridges and 12% of rural roads are in poor condition. The study also highlights the high fatality rates on poor rural roads, stressing the need for significant infrastructure investment. Full Story: Equipment World
2025 construction seen for Southwest high-speed rail
With a new $3 billion US grant in hand, major construction will begin next year on Brightline West’s high-speed rail project linking Southern California and Las Vegas, the company says. The grant from the Federal Railroad Administration comes in addition to a previously approved $3.5 billion in private activity bonding authority for the $12 billion project, which so far has seen crews drilling geotechnical borings. Full Story: Las Vegas Review-Journal (tiered subscription model)
AECOM to manage $4B San Diego airport expansion
Aecom will provide management services for the nearly $4 billion expansion of San Diego International Airport, the company announced. The project includes a new Terminal 1, modernization of Terminal 2 East, work on infrastructure and improvements in access and sustainability. Full Story: Construction Briefing
Calif. Hard Rock project almost ready to top out
The first phase of construction on the Hard Rock Hotel & Casino Tejon in Southern California is making progress and a topping-out ceremony is planned for next week. The PENTA Building Group is expected to finish the first phase by the end of next year. Full Story: KGET-TV (Bakersfield. Calif.)