In today’s construction news, read about a new tab for Holcim’s (HOLN.S) impending North American spin-off has been opened. Amrize is aiming for strong earnings and sales growth through 2028, albeit more slowly than in previous years as it negotiates a difficult climate with trade disputes casting doubt on the future. Meanwhile, unpredictable tariff policies and skyrocketing prices in the ongoing trade war between the US and Canada are causing construction businesses to reevaluate some projects, with some being shelved or placed on hold, according to an industry official. Lastly, in Kalamazoo County, three significant projects will affect traffic on and near U.S. 131 in 2025. There are already two in progress.
Holcim Spin-off Amrize Anticipates Strong US Building Growth
Original Source: Holcim spin-off Amrize targets robust growth in US construction market
HOLN.S, opens new tab, anticipated North American spin-off Although trade wars are clouding the outlook, Amrize expects strong profitability and sales growth until 2028.
The building materials company said Tuesday it expects adjusted EBITDA to rise 8-11% year between 2025 and 2028 and sales to climb 5-8%.
Company statement: Amrize IPO by first half of 2025 continues on schedule. When the spin-off was announced in January 2024, Holcim sought $30 billion.
“The company will invest in organic and inorganic growth, with a capital allocation strategy to drive growth and outperformance,” said Holcim chairman Jan Jenisch, who will lead Amrize.
The Amrize split is anticipated to be one of the biggest deals in the global construction industry, which is struggling with Trump’s tariffs on steel and aluminum.
North America’s largest cement maker, Amrize, has over 1,000 facilities and 19,000 employees.
Since long-distance shipping is expensive, Jenisch told New York investors that Amrize’s cement footprint is mostly domestic, protecting the company from imports.
Building envelope operations were expected to develop faster than the market, and Jaime Hill, head of building materials, predicted above-market growth and margin increase in the next years.
Amrize earned $11.7 billion in 2024, up 13% from 2021, when the world economy recovered from the COVID-19 epidemic. Adjusted EBITDA has grown 16% year since 2021.
High borrowing rates and inflation are hurting residential and commercial building in the U.S.
This year, the Portland Cement Association anticipates U.S. cement consumption to fall for the third year in a row and grow slowly after that.
“The U.S. construction market going into 2025 continues to face headwinds, namely the adverse effects of high interest rates on private construction,” said Brian Schmidt of PCA.
“On the commercial side, high interest rates coupled with uncertainty regarding tariffs and potential softening in the economy have hampered activity.”
The new business will be listed on the New York Stock Exchange and SIX Swiss Exchange when Holcim shareholders accept the spin-off at their AGM on May 14.
Brandon Construction Firms Facing Rising Expenses From Canada-U.S. Trade Conflict
Original Source: Rising costs from Canada-U.S. trade war putting pressure on Brandon construction firms
An industry executive says rising costs and unclear tariff policies in the Canada-US trade war are causing construction businesses to put some projects on hold or scrap them.
On March 11, the White House announced a 25% duty on Canadian steel and aluminum, with more duties due on April 2.
Brandon, Man., builders are hurrying to buy lumber and steel or locate other suppliers as Canadian prices rise.
“Planning projects that may not be built for a year or two is challenging due to the need to predict prices now,” stated Shawn Wood, executive director of the Construction Association of Rural Manitoba. “Really, it’s picking a number out of a hat.”
According to Brandon’s Livingstone Landscaping president Matt Berg, checking out product prices and building material sources for summer projects has been a flurry. He believes tariff uncertainty has some clients halting initiatives.
Customers are confused. We’re confused. Few know what’s coming “Berg remarked.
Manitoba industries unhappy ‘destructive’ U.S. trade war will continue.
This Manitoba firm is boosting Canadian patriotism amid Trump tariff concerns.
Berg says his firm is studying Canadian items to reduce tariffs and give more consistent pricing.
He says that without knowing tariff threats, it’s hard to decide if moving suppliers is worth it.
“You don’t want to really make that investment into a huge change if this is … short-lived,” he said.
Prices climb, construction falls.
Wood says lumber, steel, oil, and aluminum tariffs influence everything from insulation to asphalt shingles. Those costs are crucial to project bidding.
He expects ongoing projects to continue, but fears material price increases may hinder building.
“Depending on how quickly more tariffs come into place, it may not be an option for places to stay open,” he said. “If we can’t get the material, if we can’t make project deadlines … that could cost companies hundreds of thousands, of billions of dollars.”
Housing costs are rising due to tariff war fears.
Keller Developments, erecting a 132-unit development on Brandon’s North Hill, plans to move residents in on May 1.
Owner Evan Keller says it took five years to plan, build, and move-in the units.
Because corporations don’t know the market in months or years, tariff uncertainty makes planning these huge projects tougher.
Keller says he pre-buys materials for most current projects. The poison of the markets may prevent some planned builds, he warns.
Anticipating expenses
Keller has received repeated supplier warnings that tariffs will raise prices significantly in the previous week.
Keller says they pre-contract many things to lock in year-long pricing, but not always. They’re also looking for new suppliers for tariff-hit commodities like rebar.
He thinks they could see 400 or 500% price hikes on lumber, as they saw during the COVID-19 pandemic. Steel and aluminum prices are already rising.
Keller expects city building to increase during the next six months to avoid tariff charges and other fees that will add millions to projects.
Brandon’s 54,000 residents always need houses, therefore he thinks it may save the industry.
Vice-president Jennifer Ludwig of the Brandon Chamber of Commerce believes short-term tariff date and pricing uncertainties will have long-term effects.
Ludwig said tariff delays “that’s not helpful because the threat of it is just sitting there on your shoulder.”
Businesses are minimizing risks, but building firms must estimate prices years in advance, she added.
“Construction” “It won’t happen overnight,” stated Ludwig. “How do you plan when you have no idea what’s going on on a day-to-day basis?”
Berg of Livingstone Landscaping finds more customers hesitant to undertake new projects or opting out of builds. Not optimistic about the future.
“You’re already in a stressful situation trying to manage when the demand is somewhat soft already,” said. “It’s just another strike against you.”
3 Major 2025 Kalamazoo County U.S. 131 Construction Projects
Original Source: 3 major U.S. 131 construction projects for Kalamazoo County in 2025
Like spring blooms, orange cones and barrels appear throughout Michigan roads.
In 2025, three big projects will affect Kalamazoo County U.S. 131 traffic. At least two are underway.
From north to south, here are the highlights.
1. New U.S. 131 business loop interchange
This year, the U.S. 131 business loop intersection in Kalamazoo’s Northside area will transform.
MDOT said the $19 million interchange project will improve residents’ and businesses’ access to U.S. 131 and downtown Kalamazoo.
February ended and work is planned to finish in November.
The highway project will build two ramps from northbound U.S. 131 onto the business route and from the business route onto southbound U.S. 131 (orange on the map below).
MDOT says both new ramps need new bridges.
Five weekends, to be announced, will be closed for road repair. The renovation will close single lanes on both roadways, but traffic will continue.
US 131 interchange project begins, adding downtown Kalamazoo route for $19M
2. US 131/West Main Street
A few miles south, MDOT is overhauling the U.S. 131/West Main Street/M-43 junction.
West Main Street will be widened, a southbound off-ramp removed, and traffic lights added in the $10 million project.
U.S. 131 southbound Exit 38A will not be replaced, says MDOT. Instead, a new traffic light at West Main Street will allow two-way traffic on the 38B exit ramp.
MDOT spokeswoman Nick Schirripa said closures, prices, and renderings will be available after a contractor is hired.
U.S. 131 ramp at Kalamazoo County junction will be removed forever.
3. New KL Avenue bridges, train tracks
Not far south, contractors are in Year 2 of a three-year, $24 million project to replace U.S. 131 bridges over KL Avenue and Amtrak train lines.
The project resumed March 10.
Michigan Department of Transportation crews will restrict KL Avenue through November to repair two highway bridges.
The Stadium Drive ramp to northbound U.S. 131 is closed until June 26, reports MDOT. Drivers will detour via Stadium Drive, Drake Road, and West Main Street.
Two lanes in both directions will remain available on U.S. 131 during construction, but they will move to a temporary bridge.
Summary of today’s construction news
In summary, inflation is lessening the impact of government projects, and high mortgage rates are weighing on both residential and commercial buildings in the U.S. In order for the new business to be listed on the SIX Swiss Exchange and the New York Stock Exchange, Holcim shareholders must accept the spin-off at their AGM on May 14.
Meanwhile, Vice-president Jennifer Ludwig says the Brandon Chamber of Commerce is concerned that the short-term uncertainty surrounding tariff dates and costs will have significant long-term effects. Where possible, businesses are attempting to reduce risks, but building companies must forecast costs years in advance, she said.
Lastly, according to MDOT, the Stadium Drive ramp leading to northbound U.S. 131 will remain closed until June 26. Drivers will take a detour down West Main Street, Drake Road, and Stadium Drive. While construction is underway, U.S. 131 will maintain two lanes in both directions; however, as the project moves forward, lanes will switch to a temporary bridge.
