USGBC Launches LEED v5 with Focus on Decarbonization and Health
On April 28, the U.S. Green Building Council (USGBC) introduced LEED v5 (leadership in energy and environmental design), the latest version of its green building certification program. Shaped by feedback from thousands of industry professionals, LEED v5 tackles key sustainability challenges, emphasizing decarbonization, human health and resilience.
Decarbonization now represents 50% of the total certification score, with the new system guiding projects toward ultra-low-carbon buildings through life cycle emissions strategies—from operations to transportation. All projects must produce an operational carbon projection and adopt a long-term decarbonization plan.
LEED v5 also enhances its focus on occupant well-being and community health, aligning with growing global demand for healthier, more transparent, and sustainable buildings.
Reference
https://bit.ly/4dVTKEg
OSHA Violations of 2024
The Occupational Safety and Health Administration (OSHA) has released its list of the top 10 most frequently cited workplace safety violations for 2024. This preliminary data was shared during the 2024 National Safety Council (NSC) Safety Congress & Expo by OSHA’s Director of Enforcement Programs, Scott Ketchum, in collaboration with Safety+Health magazine.
For the 14th consecutive year, Fall Protection – General Requirements remains the most cited standard. Hazard Communication and Ladders also retained their respective No. 2 and No. 3 rankings from 2023. While the remaining seven categories on the list are familiar, their rankings shifted slightly compared to last year.
Notably, 2024 saw a drop in overall citations, with 3,540 fewer violations across the top 10 categories than in 2023.
Click through the slideshow to view the full list of OSHA’s most cited standards for 2024.
Reference
https://bit.ly/3SZ9EEd
Architecture Firm Billings Continue to Decline in March, Says AIA/Deltek Index
Architecture firms are still facing headwinds as billings fell again in March, with the AIA/Deltek Architecture Billings Index (ABI) posting a score of 44.1—well below the growth threshold of 50. This marks yet another month in a long downturn that began after the post-pandemic surge ended in September 2022. Since then, billings have dropped in 27 of the past 30 months.
New project inquiries and design contracts are also on a steady decline. March marked the second month of fewer project inquiries and the 13th consecutive month of falling new design contracts—an unprecedented streak.
“Clients remain cautious due to uncertainty around interest rates, construction costs, and the broader economy,” said AIA Chief Economist Kermit Baker. “While billings may stay soft for a while, firms still report an average project backlog of 6.5 months, which provides some cushion.”
March ABI Highlights:
Regional Averages
South: 48.3
Midwest: 45.5
West: 43.0
Northeast: 40.5
Sector Performance
Institutional: 46.2
Mixed Practice: 46.1
Commercial/Industrial: 45.1
Multifamily Residential: 40.3
Other Metrics
Project Inquiries Index: 47.7
Design Contracts Index: 42.4
All values below 50 indicate contraction.
For more insights and full reporting, visit the AIA ABI Reports.
Reference
https://bit.ly/4nbW5iD
How Modern Building Codes Are Saving Lives and Billions in Wildfire and Fire Losses
Since 2005, wildfires have destroyed over 100,000 structures in the U.S., leading to thousands of deaths and massive economic losses. In 2022 alone, 4,446 fire-related fatalities were reported, according to the National Center for Health Statistics. The National Institute of Standards and Technology estimates wildfire-related damages cost the United States between $71.1 billion and $347.8 billion each year.
But there’s good news: building codes are making a major difference.
A joint pilot study from FEMA and the U.S. Fire Administration (USFA), called the Building Codes Save (BCS) – Fire Hazards Pilot Study, found that modern building codes significantly reduce fire-related deaths, injuries, and property losses. The study focused on California statewide and Colorado’s Boulder and El Paso counties, evaluating key code improvements like:
- Fire-rated construction materials
- Smoke alarm systems
- Fire sprinkler systems
Key Findings:
- $1.8 billion in structure fire savings in California and $44.9 million in the two Colorado counties
- $24.4 billion in wildfire savings in California and $457.7 million in Boulder and El Paso counties
- 100+ lives and 1,000+ injuries prevented in California alone
These results were based on comparisons between homes built before and after modern codes were adopted (post-2000 for structure fires and post-2008/2014 for wildfires, depending on the state).
The long-term outlook is promising. FEMA and USFA expect that broader adoption of modern codes—like California’s newly adopted 2025 Wildland-Urban Interface Code—will save billions more nationwide and help build safer, more resilient communities.
Reference
Learn more about wildfire building codes and best practices here: https://bit.ly/4mSZ3bx
2025 Construction Outlook: Slower Growth, Strategic Shifts
After five years of strong gains totaling over 40%, FMI forecasts a much cooler 2% increase in U.S. construction spending in 2025. While still positive, this slowdown reflects broader economic headwinds and marks a shift to more moderate, sustainable growth.
Key Trends and Insights
Economic Pressures Ahead: Despite ongoing recession risks, construction spending is expected to grow modestly—though inflation may offset perceived gains.
Industry Resilience: Federal investments and evolving monetary and trade policies are helping stabilize the industry, even as growth returns to historical norms.
Single-Family Housing Recovery: Lower interest rates and potential housing policy reforms are boosting this critical segment, helping drive broader demand.
Multifamily Slump: Overbuilding, high vacancy rates, and tight financing are causing this sector to contract, impacting related markets like retail, lodging, and office space.
Infrastructure Leads the Way: Backed by bipartisan funding and upcoming reauthorization of Infrastructure Investment and Jobs Act (IIJA) programs, infrastructure remains a bright spot, especially in water, power and transportation.
Stable but Cautious Growth in Nonresidential Sectors: Health care, education and public safety construction remain steady, though cautious due to funding and cost challenges.
2025 Sector Performance Snapshot
Top Growth Areas (5–10%):
Residential improvements, religious, recreation, power, water, sewage and waste disposal.
Stable Sectors (0–5%):
Single-family residential, office, education, health care, transportation and highways.
Sectors Facing Declines:
Multifamily residential, lodging, commercial, manufacturing and public safety.
Market Sentiment Drops Sharply
FMI’s Nonresidential Construction Index (NRCI) plummeted from 56.9 to 43.5 in Q2 2025—its lowest reading since 2020. Industry leaders cite rising costs, declining backlogs and growing uncertainty.
What This Means for You
The construction industry is entering a more mature phase of the cycle. Now is the time to reevaluate strategies, understand shifting client and competitor behaviors, and prepare for long-term opportunities in infrastructure, innovation, and smart growth. Despite short-term uncertainty, the outlook remains solid for players ready to adapt.
Reference
Read the full FMI Report: https://bit.ly/3FS8d7h
