Top stories from April
The tariff storm might be settling (AGC 5/1)
Why tariffs shouldn't make CRE contractors panic (AGC 4/29)
DPR, Turner seek subs for $10B data center project (SMACNA, AGC 4/22)
Agencies told to sunset environmental rules by Oct. 2026 (WEF, CivilEngineers 4/11-4/14)
Why existing home sales are falling short (NAR 4/24)
Top trend
Tariff concerns abating, but not completely: The overall sentiment on tariffs in construction seems to be calming, with 44% of 217 respondents to a May 1 AGC SmartBrief poll saying they are less concerned about tariffs than they were in late March/early April. 29% said their level of concern hasn’t changed, and 27% said they are more concerned. The industry is giving mixed signals, with major firms like Graycor and Granite Construction saying the tariff landscape is less scary, while some project owners have put major projects on hold until the dust settles. The hottest construction market–data centers–seems to still be strong despite Microsoft putting some of its projects on hold. Meta seems to be full steam ahead on data centers.
Additional trends
Full steam ahead on deregulation: The Trump administration is ramping up major deregulatory initiatives. Executive orders aim to streamline the federal procurement, accelerate defense contracting and eliminate diversity-related compliance burdens for contractors. Environmental rollbacks have reduced regulatory costs but increased uncertainty for engineering and construction firms. Overall, the changes present short-term efficiency gains but carry long-term legal and reputational risks for contractors and engineers.
Housing market struggles: Existing-home sales are down despite strong buyer demand, mainly due to limited inventory and homeowners holding onto low mortgage rates. In contrast, new-home sales rose as builders met demand with more inventory, incentives, and smaller, affordable homes. However, rising material costs from new tariffs and persistent labor shortages are creating uncertainty for the new-home market.
