In today’s construction news, read about the US construction industry being impacted by the increase in global metal prices caused by China’s removal of export tax refunds on copper and aluminum exports. Meanwhile, the Las Vegas Valley is experiencing a severe housing crunch, with a dearth of affordable housing options, as reported by FOX5. Lastly, a design project for road upgrades along U.S. 1 (Roosevelt Boulevard) from Harbison Avenue to Southampton Road in Philadelphia County has been started by PennDOT in collaboration with the City of Philadelphia.

US Construction Shadowed by Rising Metal Prices

Original Source: Rising Metal Prices Cast Shadow on U.S. Construction Industry

The Monthly Metals Index (CMI) fell 1.09%, continuing its sideways pattern. Despite a flood of building news, the index barely moved month-over-month or responded to interest rate decreases. The construction index may need a stronger Fed rate cut to react to this macroeconomic price driver.

Despite the tepid reaction to The Fed’s dovish attitude, the construction industry saw some notable month-over-month changes. Key is China’s suspension of aluminum and copper export tax rebates. This cancellation is affecting the U.S. construction market because these two metals (primarily aluminum) are widely used in construction.

President-elect Donald Trump’s proposal to charge Chinese imports worries U.S. construction firms and contractors. Most construction news sites agree that these tariffs could cause long-term volatility in the U.S. building market.

On December 1, China cancelled export tax credits for aluminum and copper exports, affecting global industrial metal prices. Construction news sources say China’s recent action will affect the U.S. construction business.

Eliminating the 13% VAT rebate on Chinese copper and aluminum exports should boost their worldwide competitiveness. Thus, economists expect Chinese exports to fall, reducing global supply and pricing pressure.

Steel products were not directly affected by rebate cancellations, but the strategy may indirectly affect global steel markets. As aluminum and copper prices climb, industry may employ steel instead. Demand may rise, raising steel and other metal costs. Read The 5 golden guidelines for sourcing metal to avoid geopolitical policy moves causing metal market volatility.

Construction news: U.S. implications

The U.S. building sector uses aluminum and steel for structural components, wiring, and piping. Rising global aluminum and copper prices may raise U.S. building project material costs and costs.

If steel prices rise owing to rising demand or global supply chain changes, the building sector may suffer more financially.

U.S. Construction Companies’ Strategic Considerations

Given these changes, U.S. construction enterprises should consider alternative suppliers and supplies to mitigate price swings and supply delays. Using financial techniques to hedge against rising costs can also stabilize significant project prices.

Finally, long-term contracts and strategic supplier agreements can lock in better rates and improve supply chain reliability.

Construction News Announces Metal Sourcing Benefits

After Fed rate cuts, the U.S. construction industry remains cautiously optimistic. The Fed decreased the federal funds rate 0.5 percentage points in September 2024. November saw another 0.25 percentage point reduction.

Reuters reported that October U.S. construction spending grew 0.4%, beating economists’ estimates. New single-family house projects accounted for 0.8% of the 1.5% residential construction spending increase that drove growth. Many building news watchers were startled by the gains despite rising mortgage rates.

The commercial real estate sector is apprehensive. The $3.5 billion Rockefeller Center refinancing deal suggests a minor investment and construction industry boost, according to MarketWatch. The building industry still confronts challenges. With returns at a 10-year high and property values below pre-pandemic levels, investors perceive a significant opportunity.

Overall Industry Outlook

Construction firms are optimistic yet cautious, knowing that lower interest rates will take time to affect financing arrangements and project plans.

Developers are cautiously optimistic, with some projects moving from planning to development. Any significant expansion in activity will require better loan-to-value ratios and equity requirements.

Two Supreme Court decisions Might Halt Las Vegas Homebuilding

Original Source: How two Supreme Court cases could stall Las Vegas home construction

Two U.S. Supreme Court decisions might affect construction, timetables, and federally required environmental reviews or studies, according to home builders and environmental groups.

San Francisco v. EPA and Seven County Infrastructure Coalition v. Eagle County, Colo. The cases could decide federal mandates and the scope of a federal environmental review or study to assess a building project’s impact.

FOX5 reported on the significant affordable housing shortage in the Las Vegas Valley. Developers, housing specialists, and local authorities blame the land problem on the Bureau of Land Management, which owns most of Nevada.

Construction insiders in the Las Vegas Valley tell FOX5 that environmental reviews take time and planning: in rural or undeveloped areas, private land developers may need federal oversight when their projects encroach on the habitat of federally-protected endangered species like the Desert Tortoise. Insiders tell FOX5 that reviews might take months or years.

Clark County must manage and plan for wildlife and endangered species environmental impacts under the federal Multiple Species Habitat Conservation Plan.

The Center for Biological Diversity says government control is needed to maintain the environment, animals, and drinking water.

Our right to clean air, water, and a healthy environment is protected by the National Environmental Policy Act. The law evaluates all potential environmental impacts from a proposal.

The desert tortoise is endangered, and letting developers take its habitat is unconscionable, said Deeda Seed of The Center for Biological Diversity.

In the Seven County Infrastructure Coalition v. Eagle County, Colo. Case, the Center for Biological Diversity wants federal regulators to review the “downstream” impact of a rail line along the Colorado River, which affects tens of millions of Southwest and Southern Nevada residents’ drinking water.

The National Association of Home Builders told FOX5:

Both scenarios could increase development uncertainty. Uncertainty costs time and money.

The EPA used ambiguous phrases in the San Francisco permit in San Francisco v. EPA. NAHB told the Court that permit terms need not be “numeric,” but they must be clear enough for the permittee to comply.

NAHB worried that the lower court’s NEPA analysis in Seven County Infrastructure Coalition v. Eagle County, Colo. had no borders, therefore there was no stopping point.

Phase A of the BAT Lane Design and Construction on Roosevelt Boulevard (U.S. 1)

Original Source: U.S. 1 (Roosevelt Boulevard) BAT Lane Design and Construction Phase A

PennDOT and the City of Philadelphia are designing roadway upgrades on U.S. 1 (Roosevelt Boulevard) from Harbison Avenue to Southampton Road in Philadelphia County. 

The Department will complete preliminary engineering, final design, and project construction. In early 2024, preliminary engineering began. 

Along Roosevelt Boulevard, this project will design Business Access and Transit (BAT) lanes, bicycle and pedestrian safety enhancements, corridor access management, intersection and roadway changes, pavement marking, traffic control, and traffic light adjustments. 

The Roosevelt Boulevard BAT lanes will be built in Phase A, restricting usage of the outermost lane in each direction to Transit (Bus) use with short stretches where right turns are allowed at signalized intersections and other side streets. BAT lanes allow buses to travel in a lane distinct from through traffic to only encounter vehicles making right turns at permitted locations. The BAT lanes improve Roosevelt Boulevard travel by enhancing transit dependability and service time. From Bustleton Avenue to north of Southampton Road, Phase A will build BAT lanes. To indicate that the outer lane is a BAT lane, the pavement marking and signage will be improved. 

Roosevelt Boulevard will need to be modified to accommodate Phase A BAT lanes and improve user safety.  A new traffic signal was installed at the intersection of the Woodhaven Road (Route 63) approach to northbound Roosevelt Boulevard. 

Roosevelt Boulevard inner and outer lane crossovers will be built. New crossovers are expected at two locations:

Northbound US 1 and Woodhaven Road (Route 63) intersection reconfiguration and ramp realignment. We’ll close the crossovers on Roosevelt Boulevard south of Woodhaven Road and US 1 south of Southhampton Road.

The elimination of the northbound Roosevelt Boulevard crossing south of Harbison Avenue.  A new crossover north of Unruh Avenue is proposed.  

Microsimulation will also assess the feasibility and design of Phase B BAT lanes and crossover adjustments between 9th Street and Pratt Street on Roosevelt Boulevard’s southern terminus. At the S-Curve, BAT lanes are not intended southbound between Summerdale Avenue and Adams Avenue (west) and northbound between Langdon Street and Adams Avenue (east). 

Summary of today’s construction news

In summary, although there are still obstacles to overcome, the US construction industry is cautiously hopeful as a result of recent interest rate reductions and rising construction spending.

For US construction companies to deal with growing prices and possible supply disruptions, strategic sourcing and financial tools are essential.

Meanwhile, according to San Francisco v. EPA, the San Francisco permit contained ambiguous language from the EPA. Permit terms don’t have to be “numerical,” according to NAHB, but they must be explicit enough that the permittee understands how to fulfill the requirements. NAHB was worried that the NEPA review mandated by the lower court in Seven County Infrastructure Coalition v. Eagle County, Colorado, lacked boundaries, meaning there was no obvious end point.

Lastly, the suggested Phase B Microsimulation will be used to assess the viability and future design of BAT lanes and crossover adjustments between 9th Street and Pratt Street along the southern end of Roosevelt Boulevard. In the northbound direction between Langdon Street and Adams Avenue (east) and the southbound route between Summerdale Avenue and Adams Avenue (west), BAT lanes are not suggested.