The latest on Trump's tariffs

Switching to electric public transit requires more than new vehicles. Today we share insight from a California construction company that's helping to build the infrastructure needed to maintain a city's electric public transit system for decades. But first: How cowboy boots revealed a Florida man's construction crimes.  

Here's a peek at what's in today's issue:
// How Trump's tariffs could impact construction
// What you need to know about the affirmative action executive order
// Who you should follow on social media

California city goes completely electric with its public transit

With a population of 110,000, Santa Maria, Calif. rivals larger neighbors when it comes to progressive technology and sustainability.  Case in point: the city has switched its entire public transportation fleet from gas-powered vehicles to electric-powered ones. 

In 2022, Santa Maria was awarded $6.6 million from the Federal Transit Administration to purchase electric buses. The grant was in response to the city’s aim to go completely electric with its public transportation by the end of 2024—a goal which was met. The city’s microtransit e-fleet now relies on zero-emission minibuses that are 20 feet long and have the ability to maneuver narrow city streets with ease. 

But the e-fleet required an upgrade in system infrastructure to modernize both the ride and scheduling experience for riders. This included the implementation of a mobile app and updates to the city’s transit center. 

Enter Omni Design Group of San Luis Obispo, Calif.— an international design company selected for its history of sustainable, sleek design in municipal structures. 

“The new transit center’s design emphasizes community involvement and incorporates spaces for civic events, transforming it into a multifunctional public space that fosters community engagement and a sense of connection,” says Juan Pablo Cal y Mayor, CEO of Omni Design, Inc. 

Phase I, now complete, focused on enhancing the Transit Center’s parking and circulation. Updates included expanded parking, autonomous bus parking technology and the integration of solar panels with battery storage, setting a foundation for sustainability.

Phase II is now underway and slated for completion this year. It centers on revamping the existing Transit Center building. Improvements include enclosing the open-air waiting area, upgrading the structure and adding offices for city departments. Additionally, the new space will accommodate rotating civic events.

Phase III will focus on-site improvements, including integrating more smart technology to enhance the overall public transit-user experience

“This project represents a significant investment in the quality and longevity of our city and region's public transit system," says Gamaliel Anguiano, Santa Maria's city planner. "We want an attractive, sustainable facility that will welcome riders today and in the next 50 years." –Katie Parsons

>> Who we're following:  Timothy Uhler (@awesomeframers) on Instagram. Uhler, co-owner of Pioneer Builders in Port Orchard, Wash., delivers educational insights, family business tips, tool reviews and other engaging content.

>> What we're marking on our calendars: Feb. 12th's Turbocharge Your Construction Accounting. Get helpful hints from the experts at Trimble and Forvis Mazars in this AGC-sponsored webinar.

>> The trend we're watching: The increase in bridge and highway construction in the U.S. What does the workload look like for construction companies?  

>> What's happening soon: GEO Week 2025 (Feb. 10-12) in Denver.

>> Just for fun: Space out! Take a look at this 2.5-billion-pixel image of our galaxy, captured by the Hubble Space Telescope.

Troubling Tariffs: Industry responds to threat of increases

Though President Trump has decided to delay his originally announced 25% tariff on goods from Canada and Mexico, its looming possibility could hobble the construction industry. Already, leaders in China have announced retaliatory tariffs to counteract Trump’s 10% Chinese import tariff. 

In response to the decision to delay the rollout of the North American tariffs, the National Association of Homebuilders Chairman Carl Harris said in a prepared statement, “We commend President Trump for reaching an agreement with Canada and Mexico to delay the proposed tariffs, avoiding additional strain on a housing market already facing affordability challenges. Stability and certainty are essential for American businesses, consumers, and the strength of our economy. We urge all parties to remain committed to productive dialogue to prevent new tariffs on construction materials critical to housing our nation.”

Materials suppliers are raising similar concerns. “Workers and their communities are counting on their elected leaders to make strategic decisions that help confront bad trade actors like China while at the same time fostering domestic manufacturing capacity,” writes David McCall, international president of United Steelworkers in a published response. 

Why it matters: Tariffs on Canadian and Mexican lumber and other building materials increase the cost of construction, changing the financial fundamentals for projects underway and discouraging new development. They also put strategic North American partnerships at risk without addressing the core issues. “The key to eliminating unfair competition, confronting global overcapacity in crucial sectors, and stemming the flow of unfairly traded products making their way into North America is targeted tariffs on countries that violate our trade laws and greater coordination with our trusted allies—not sweeping actions that undermine crucial relationships,” says McCall. (CNN)

>>  Future Focus: 'Opportunity comes with uncertainty' says JLL analyst

>>  Power Play: President supports energy co-location for data centers

>>  Survey Says: Leaders most concerned about cyber and climate threats

Talent Tip: Go beyond ambition to identify leaders

Choosing strong candidates for leadership positions is integral to business sustainability. New research from the Stanford Graduate Business School found that more ambitious professionals, who are frequently selected for leadership development, see themselves as very effective, but their managers, direct reports and peers, view them as no more effective than less ambitious employees.

To overcome that, Francis Flynn, one of the researchers, recommends intentionally expanding the candidate pool from the beginning and using 360-degree assessments and other tools to evaluate leadership traits objectively.

Why it matters: “Leader selection should be an opt-out, not an opt-in situation,” Flynn concludes. “That will allow space for people who should be considered because they’re talented, not because they overestimate the extent to which they deserve that opportunity." (Insights by Stanford Business)

Affirmative Action: Latest executive order prompts caution

With the rescission of President Lyndon Johnson’s nondiscrimination executive order last week, federal contractors are no longer required to engage in affirmative action based on race and gender. They must, however, continue to avoid discrimination against people with disabilities and veterans. The order also prohibits the U.S. Department of Labor’s Office of Federal Contract Compliance Programs from promoting diversity, holding federal contractors responsible for upholding affirmative action and “allowing or encouraging federal contractors and subcontractors to engage in workforce balancing based on race, color, sex, sexual preference, religion or national origin."The new order is confusing, according to David Goldstein, a lawyer with the Littler Mendelson firm in Minneapolis.

Affirmative action “is one of those terms that means different things to different people," Goldstein tells the Society for Human Resource Management. Employers who want to promote inclusion and diversity “will need to think very carefully about what those concepts really mean—and should mean—and how to achieve them in a way that is constructive, effective and safe from attack," he cautions.Why it matters: In response to the order, the Finishing Contractors of America urges all federal construction contractors to "immediately review and modify DEI and affirmative action policies to align with the new EO" because "certification of compliance will be required to continue federal work." (FCA)

• Earn a certificate in Construction Engineering for Infrastructure Projects: Enroll in this self-paced Virginia Tech online course to boost your project management skills.
• Learn about sustainable construction in a circular economy: Join Alison Mears AIA, LEED AP, in this three-module online course covering the latest in circular design and design innovation.
• Construction Compensation Survey Report: Review comprehensive pay data for senior project manager, senior estimator and controller positions.

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The Level is written by Margot Lester and edited by Katie Parsons.