Author: agcnews
In this mid-year economic outlook, AGC of America’s Chief Economist breaks down the latest trends shaping the construction industry. While many contractors remain busy, signs of a slowdown are mounting. Topics covered in this update include: 🔹 Slowing construction spending and employment 🔹 Rising uncertainty from shifting tariff policies—especially looming 50% tariffs on steel and aluminum 🔹 The impact of immigration enforcement actions and ICE raids on job sites 🔹 Project delays, cancellations, and owner hesitancy 🔹 Bright spots in data centers, energy infrastructure, and federal investments via the IIJA and CHIPS Act 🔹 Growing risks of recession and inflation…
Construction spending fell for the fourth month in a row in May, declining 0.3 percent from April and 3.5 percent from a year earlier, the largest year-over-year decrease since February 2019, according to an analysis by the Associated General Contractors of America of a new government report. Association officials noted that growing uncertainty about potential new tariffs, labor policy and tax rates are prompting many private sector developers to delay or cancel planned projects. “Uncertainty about tariffs, tax rates and labor availability are making it hard for many developers to risk moving forward with planned construction projects,” said, Ken Simonson,…
Construction employment increased in 180, or exactly 50 percent, of 360 metro areas between May 2024 and May 2025, according to an analysis by the Associated General Contractors of America of new government employment data. Association officials said the construction employment growth has stalled in many parts of the country amid growing uncertainty about tax, tariff and labor policy. “Only half of metro areas experienced a year-over-year gain in construction jobs—the fewest since March 2021,” said Ken Simonson, the association’s chief economist. “This appears to support other indications that investors and developers are delaying or canceling planned projects until they…
Since last week’s changes to the reconciliation package, Senate Parliamentarian Elizabeth MacDonough has been running the long-anticipated “Byrd bath” on the Senate version of the One Big Beautiful Bill Act (OBBBA). Her early rulings have already forced Republicans to rewrite or strike parts of the 1,000-plus-page reconciliation package as leaders race to meet their self-imposed goal of voting before the July 4 recess. So far, this includes more than two dozen policy riders that she deemed extraneous under the Byrd Rule, that dictates what can and can’t be included in a reconciliation package. Those casualties include: a “pay-to-play” permitting shortcut…
AGC of America released a Key Elements document designed to support small and emerging construction firms. To lead this effort, AGC established the Contract Preference Programs Taskforce, drawing on insights from a recent member survey as part of its comprehensive review process. The resulting Key Elements document highlights five core principles that should guide any future efforts to support small and emerging contractors, particularly if current programs are revised or eliminated. Importantly, the taskforce also identified real-world examples from states and cities that are already applying these principles effectively. You may recall, recent legal challenges have raised questions about the…
Construction employment increased in 33 states and the District of Columbia in May from a year earlier, while 27 states added construction jobs between April and May, according to a new analysis of federal employment data released by the Associated General Contractors of America today. Association officials noted that employment gains in the industry have been muted amid questions about a range of federal labor, tax and trade policies. “Construction has been in a holding pattern for several months, with gains in a small majority of states,” said Ken Simonson, the association’s chief economist. “Uncertainty over tariffs, immigration, federal funding,…
What happens when MBA Young Constructors (aka CLC) branch out and team up with local government and park stewards? A greener, stronger community takes root. That’s exactly what happened when 35 members of the MBA Young Constructors traded in their hard hats for shovels this Spring, and joined forces with Allegheny County Executive Sara Innamorato and the Allegheny County Park Rangers to plant 125 native trees, from sugar maples to flowering dogwoods, as part of a trail renovation in a major county park. Led by the Rangers and supported by the MBA Green Committee, the project will leave lasting benefits…
May 28, 2025 marked the official launch of the Construction Leadership Forum (CLF), a dynamic new initiative from the Associated General Contractors (AGC) of Wisconsin, aimed at connecting and inspiring emerging leaders within the state’s construction industry. Held at the newly renovated South End Zone of Camp Randall Stadium, the event offered attendees a unique opportunity to engage with industry peers, explore cutting-edge facilities, and hear from influential leaders. University of Wisconsin Athletic Director Chris McIntosh headlined the forum, providing insightful commentary on the evolving landscape of collegiate athletics and its intersection with major construction and development projects. His remarks underscored the importance of leadership and…
On June 6th, the Trump administration finalized their updated guidance on the Broadband, Equity, Access and Deployment (BEAD) program. The changes, announced by U.S. Commerce Secretary Howard Lutnick, changed BEAD from a fiber-priority program to be technologically neutral. This change means that all technologies used in internet deployment, such as low-Earth orbit satellites and fixed wireless networks, can apply for BEAD funds. The new guidance also removed some Biden administration regulatory requirements that the Trump administration criticized, such as hiring preference standards and environmental considerations in project deployment. Under the new guidance, the lowest overall cost is the guiding principle…
The Senate Finance Committee has released its draft of the One Big Beautiful Bill Act and it reshapes several construction-critical provisions that cleared the House on May 22. It is worth noting that these changes have just been released, and not yet voted on by the Senate. For tax planning, the Senate version is permanently restoring 100 percent bonus depreciation for property placed in service after Jan. 19, 2025, instead of sun-setting the incentive after 2029. The draft also keeps the Sec. 179 expensing limit at $2.5 million with a $4 million phase-out for equipment and permanently allows immediate expensing…