In today’s construction news\, read about in recent years, the construction industry in the United States has encountered several obstacles. On the other hand, federal prosecutors said that a West Virginia construction company owner was taken into custody on Monday on charges of providing shelter and concealment to non-citizens of the United States. Finally, MDOT has disclosed the anticipated completion date of the US-131 and I-96 construction projects.

The Global Detachment of US Construction

Original Source: How US construction left the world behind

Recent years have been difficult for the U.S. construction industry.

Construction expenses remain 40% higher than in February 2020, before the COVID-19 epidemic. Labor shortages continue to slow building, according to a recent Associated General Contractors of America survey.

The Associated Builders and Contractors Construction Confidence Index also reveals many U.S. contractors expect profit margins to fall in six months.

Despite these difficulties, the U.S. construction sector remains resilient relative to the world.

Dodge Construction Network reported 6% growth in U.S. project starts through August compared to 2023. The Dodge Momentum Index, which tracks nonresidential construction planning, rose 31% in August compared to last year.

U.S. building activity has been strong, while other big economies have not. Recent performance of other nations’ construction industries:

According to Fastmarkets, a housing market slowdown and less infrastructure investment have slowed China’s building sector. The Wall Street Journal says that rising government debt reduces new projects and investment in the sector. Unlike the U.S., China dropped interest rates in September to boost a weakening economy, not battle inflation. 

Germany: S&P Global reported that housing and commercial projects plummeted in August, causing the construction sector in Europe’s largest economy to decline again. According to the survey, builders are worried about the year ahead due to decreased bookings, expensive construction costs, and German economy concerns. 

In a recent S&P Global Market Intelligence study, Tim Moore, economic director, stated the U.K. construction industry is recovering following a tough start to 2024. The collapse of ISG, one of the nation’s top construction businesses, has sparked fears about the supply chain and smaller contractors.

Construction activity in South Korea is falling, writes The Korea Times. Due to construction workers’ pessimism, jobless claims have skyrocketed during the recession.

New Zealand: EBOSS’ builder attitude research found that two-thirds of builders in New Zealand experience lower demand than previous year. According to the report, rising borrowing rates, material costs, and a poor economy are to blame.

A US construction boom

Rising material costs and economic uncertainties cause construction slowdowns in other countries, as well as in the U.S. In certain cases, these concerns are worse in the states.

A 2024 international construction industry analysis by Turner & Townsend, a U.K.-based real estate and infrastructure company, found that building costs in major U.S. cities have risen. The research covers 91 global markets.

“Six of the world’s top 10 most expensive cities to build in are in the U.S.,” said Turner & Townsend North America vice president Michael Hardman. New York is the most costly city to develop in, followed by San Francisco. The Top 10 includes Los Angeles, Boston, Seattle, and Chicago.

ABC reports that U.S. construction spending grew over 41% from April 2020 to July 2024, a good gain for any region. Simon Rubinsohn, head economist at the London-based Royal Institution of Chartered Surveyors, a global construction standards body, attributed that to the U.S. economy’s post-pandemic strength.

“The U.S. economy has been more resilient than others during and after the COVID-19 pandemic,” Hardman added. “Compared to other economies, targeted economic stimulus and energy autonomy have helped foster growth, improve productivity and temper inflation.”

Public funds

Jose Luis Blanco, senior partner at New York-based McKinsey, a global management consulting firm, said federal money have sustained U.S. construction momentum.

Blanco said federal incentives had boosted nonresidential spending. “This has pushed transportation, infrastructure, clean energy infrastructure, and manufacturing.”

The $1.2 trillion Infrastructure Investment and Jobs Act, $369 billion for climate and energy in the Inflation Reduction Act, and $52.7 billion CHIPS Act have boosted infrastructure and manufacturing spending and building.

“The U.S. construction industry’s success in recent years has been largely due to federal funding,” Hardman said. “It has been a notable, and perhaps dominant, driver behind growth.”

Blanco added that onshoring has helped the U.S. construction business outperform others.

“Companies have decided to rethink their manufacturing footprint,” Blanco said. That has led to nearshoring and a surge in semiconductors, automobiles, and life sciences.

That momentum should continue after the Fed’s Sept. 18 0.5 percentage point rate drop. Construction executives said the measure will certainly increase project groundbreakings.

Flexibility

U.S. general contractors’ geographic flexibility is also important.

Hardman says several contractors have expanded into new cities like Miami, Austin, Texas, and Phoenix. That may be difficult for European contractors to do internationally.

Hardman said U.S. contractors have diversified and showed flexibility in the construction business, changing their attention from conventional markets and industries to new ones. “The larger U.S. contractors have started to look at smaller projects that they might not have considered.”

Consider Dallas-based Mycon General Contractors. It started building the Tucson Rehabilitation Hospital in Arizona, its first ground-up project there. Adolfson & Peterson, based in Minneapolis, wants to nearly increase its sales in Central Texas by 2024.

Blanco stated that while technological innovation in building is little compared to the tech scene, the U.S. still leads globally.

Blanco stated that 80% of building innovation venture funding was invested in the U.S. That means fresh company developments are encouraged here. The U.S. has an advantage because investment money goes where innovation is happening.

Owner of West Virginia Construction Firm Accused of Harboring Foreigners

Original Source: West Virginia construction company owner accused of harboring non-U.S. citizens

Federal authorities detained a West Virginia construction firm owner on Monday for harboring and hiding non-citizens.

According to a news release from the U.S. Attorney’s Office for the Northern District of West Virginia, Morgantown’s Hetzon Marroquin Reyes, 40, is accused of hiring and harboring illegal immigrants to work for A&M Homes, LLC.

In the news release, prosecutors said Reyes used others’ social security numbers to manufacture tax documents and fraudulent driver’s licenses and immigration forms for West Virginia Division of Labor inspectors.

Reyes faces one conspiracy to harbor aliens for commercial advantage and private financial gain, 32 counts of false social security number representations, one count of corrupt interference with tax code administration, and one visa and other document fraud charge.

Reyes may serve 10 years in federal prison for conspiracy and fraud, five years for false statements, and three years for corrupt intervention, according to prosecutors.

MDOT Announces US-131, I-96 Completion Dates

Original Sources: MDOT announces when US-131, I-96 construction will end

The problem has plagued West Michigan drivers for months. The traffic-coned, one-lane tunnel may have a light at the end. 

MDOT has revealed the end date for US-131 and I-96 construction. 

The US-131/I-96 ramp opened one lane Friday. The ramp linking the freeways was closed since April 28. 

MDOT missed their mid-September one-lane opening deadline by two weeks. Mid to late November is probable when the project finishes. 

MDOT spokesperson John Richard says he understands drivers’ frustration but believes the repairs are required. 

“This is the first time these bridges have been closed in decades,” he said. “And these bridges are about as old as I am.”

MDOT completed improvements to the eastbound I-96 ramp to southbound US-131 two years ago.

Crews will rebuild the two-lane ramp connecting northbound US-131 to I-96 and M-37 (Alpine Avenue) after this project. Richard claims a $6 million project. 

Bridge deck, barrier, expansion joints, lighting, structural steel painting, substructure improvements, and approach work are included. 

Alpine Avenue’s on-ramp will be closed until mid-or late November when the repair finishes. Richard said structural steel repairs under the bridge prevent weight on that location. 

Large, historic bridges handle a lot of traffic. They cross railroad tracks. Flying above West River Drive. It crosses 131, so these old structures need a whole season of TLC “explained Richard.

MDOT plans a major I-96 project in Ionia County, M-6 construction, and 8th Avenue bridge rehabilitation in western Ottawa County.

You may see a real-time map of local projects on Michigan.gov/Drive, the best place to keep up with the constant construction updates.

In the interim, Richard advises caution in construction zones. 

Constantly pay attentive. Try to stay calm. Be polite, patient. He stated it goes far. 

Summary of today’s construction news

In simple terms, according to Blanco, “the U.S. accounted for about 80% of the venture capital money invested in construction innovation.” This indicates that new businesses are being inspired to innovate here. Because of where investment money is actually going and where innovation is actually occurring, the United States has an advantage.

On the other hand, Reyes may spend a maximum of 10 years in federal prison for each conspiracy and fraud charge, up to five years for each false representation charge, and up to three years for corrupt interference, according to the prosecution.

Finally, MDOT has a huge project planned for I-96 in Ionia County, work on M-6 and bridge replacement on 8th Avenue across M-6 in western Ottawa County.