February 6, 2025

CT Construction Digest Thursday February 6, 2025

Danielson concrete operation has assets purchased by MA company: Will employees be retained?

Connor Linskey

Sterling Concrete Corp., a ready-mix concrete supplier in Massachusetts, has purchased most of the assets of the ready-mix concrete operation, formerly known as Jolley Concrete, from CarbonBuilt, Inc. Brooklyn Sand & Gravel, which operated by Jolley Concrete was not part of the deal.

The former Jolley Concrete business, located at 42 Junior Ave. in Danielson, will now operate under the Sterling Concrete brand. In addition to being a concrete supplier, Sterling Concrete manufactures concrete blocks from recycled materials.

Discussions regarding the purchase had been ongoing between Sterling Concrete Corp. and CarbonBuilt, Inc., with the deal effective Tuesday. 

The Danielson plant is Sterling Concrete Corp.’s first in Connecticut and George DeFalco, Division President of Sterling Concrete Corp., is excited to expand the supplier’s footprint. 

“This opportunity marks a significant step forward in our journey of growth and strengthens our regional footprint in the Connecticut market and surrounding areas,” DeFalco said in a press release. “Not only do we look forward to integrating their current team members with our team, but we are thrilled to leverage their expertise and local knowledge to better serve our clients and communities.” 

Madilyn Smith, chief legal and administrative officer for Rawson Materials, said employees who were working for Jolley Concrete were terminated by Jolley and given offers by Sterling Concrete. She could not comment further regarding numbers and who accepted the offer.


Losing construction sectors under Trump

The construction industry faces a shifting landscape as the Trump administration sets about reshaping some of the country’s most impactful federal policies.

With changes in infrastructure priorities, regulatory rollbacks and economic shifts, contractors and developers are bracing for both new opportunities and potential setbacks. Some sectors, such as data centers and infrastructure, are set for rapid growth, while clean energy projects and high-speed rail could see federal support dwindle. Other types of projects have a mixed or uncertain outlook under the new administration.

Below, Construction Dive looks at the sectors poised to lose momentum under Trump’s second term. Click here for the sectors that are poised to gain momentum.

Wind, solar energy

Trump’s Unleashing American Energy order seeks to accelerate power projects but notably leaves out the burgeoning solar and wind sectors, which together comprise about 14% of the country’s power supply, according to the Energy Information Administration.

Trump’s ire has long been directed at wind power in particular, even though the biggest producers are red states, per the EIA. To that end he signed a standalone executive order temporarily suspending new or renewed leases for offshore and onshore wind projects, and halted the leasing of wind power projects on the outer continental shelf, pending a review by federal agencies.

Among the major open questions around the order is whether projects that have already received permits are in jeopardy, according to Grist. For example, it has halted development of the 100,000-acre Lava Ridge Wind project in Idaho, the Idaho Capital Sun reported.

The order also directs the administration’s pick for Secretary of the Interior, former North Dakota governor Doug Burgum, to lead a comprehensive assessment of federal wind leasing and permitting practices. As of 2023, wind generated 36% of North Dakota’s power, according to the U.S. Energy Information Administration. Despite the order, many renewable energy giants seemed to shrug off Trump’s actions, CNBC reported.

It’s tough to tell what will happen with solar energy. New solar projects could be hit hard by tariffs from China, a crucial source of parts, according to Politico. Still, wind, solar and other clean energy projects could all be sped along if Trump weakens environmental laws to speed construction permitting.

“In discussions with construction clients and industry leaders, there is a general consensus that both ‘traditional’ energy sources and ‘greener’ energy have roles in play in the broader energy landscape,” said Kassalen.

High-speed rail

Passenger and high-speed rail projects supported through the Biden administration could get reduced federal support under Trump, according to Holland and Knight. Additionally, public transit systems, which rely on federal funding, could struggle to secure the money needed to expand their systems due to cuts in discretionary transportation funding.

IIJA funding for rail projects could be affected in particular, Holland and Knight experts wrote.

“The administration and congressional Republicans may attempt to offset annual passenger rail funding using advanced appropriations provided by the IIJA, which included $66 billion in advanced appropriations for rail projects,” according to the brief.

EV and battery factories

Trump’s hostile attitude toward EVs does not appear to have softened after welcoming Tesla CEO Elon Musk onto his team: His Day 1 energy order directs agencies to eliminate the “electric vehicle (EV) mandate.” It specifically targets IIJA funds for electric vehicle charging stations through the National Electric Vehicle Infrastructure Formula Program and the Charging and Fueling Infrastructure Discretionary Grant Program, together worth $7.5 billion.

Although Trump wants to halt the disbursement of unspent funds from those programs, legal experts say that he probably doesn’t have the power to. Doing so would likely violate the Impoundment Act, which prevents presidents from blocking spending that Congress has appropriated, according to CNN. However, Trump has used his power to rescind Biden’s executive order that called for half of all new vehicles sold to be electric by 2030.

However, U.S. automakers are too committed to EVs — and to building plants that make them and their batteries — to pull back completely, no matter what changes Trump is able to implement, per CNN. Although IIJA projects are on hold, EV money is in the pipeline: Biden announced an additional $635 million for refueling projects on Jan. 10 before leaving office, following $521 million in grants in August 2024.

Water

Water infrastructure continues to be an area of concern across the country, as burgeoning cities and megaprojects like data center campuses seek to slake their thirst. Although the Trump administration has championed data centers, it has said little about the vast amounts of water required to run them.

If his past actions are an indication of future plans, Trump will seek to roll back the Clean Water Act and leave regulation of smaller waterways to states, according to The New York Times. Previously, the president also directed federal funding to rural water and wastewater infrastructure projects.

During his first term, the Trump administration studied the issue of per- and polyfluoroalkyl substances, or PFAS, in drinking water and his EPA was generally in favor of regulation, according to WaterWorld. Megacontractors like Jacobs and AECOM have claimed more PFAS cleanup work in recent years. However, Trump’s Jan. 20 order, Regulatory Freeze Pending Review, halted any proposed rules that have been sent to the Office of the Federal Register, including a Biden administration proposal to set limits on PFAS in effluent with discharge limits.

For the moment, water projects funded by the IIJA could have trouble receiving funds, but because water infrastructure initiatives do not appear to conflict with Trump’s policy objectives, “EPA seemingly retains the power to move ahead with disbursement of the IIJA-appropriated SRF dollars unfettered,” the Association of Metropolitan Water Agencies said in a Jan. 27 briefing.

 

Winning construction sectors under Trump

The construction industry faces a shifting landscape as the Trump administration sets about reshaping some of the country’s most impactful federal policies.

With changes in infrastructure priorities, regulatory rollbacks and economic shifts, contractors and developers are bracing for both new opportunities and potential setbacks. Some sectors, such as data centers and infrastructure, are set for rapid growth, while clean energy projects and high-speed rail could see federal support dwindle. Other types of projects have a mixed or uncertain outlook under the new administration.

Below, Construction Dive looks at the construction sectors poised to gain momentum under President Donald Trump’s second term. Click here for the sectors that are poised to lose momentum.

Data centers

Data center construction growth should surge to new heights this year after a strong pace of activity in 2024, according to the Associated General Contractors of America’s annual outlook survey.

About 42% of contractors surveyed by AGC, up from 20% last year, expect the value of projects in the sector to be higher in 2025 than 2024. JP Morgan anticipates spending on data centers to boost overall U.S. GDP by about 10 to 20 basis points from 2025 to 2026, according to Reuters.

That push is being fueled by big tech companies. For example, a new joint venture among tech giants OpenAI, Softbank and Oracle, dubbed Stargate, plans to invest $100 billion in artificial intelligence infrastructure, with the potential to scale up to $500 billion by 2028. Trump announced the initiative at the White House, calling it essential to keeping the U.S. ahead in AI innovation. He pledged to fast-track permitting and support energy projects to power the data center builds.

“[Data center construction] has emerged as one of the fastest-growing construction markets,” said Brian Kassalen, principal and construction industry leader at Chicago-based Baker Tilly, an advisory, tax and assurance firm. “Even before the announcement of Project Stargate, data center construction was a top construction market with significant growth forecasted in 2025 and beyond.”

Earlier this year, Chicago-based Clayco unveiled a new business unit to accelerate its data center construction efforts. CEO Anthony Johnson expects the firm’s revenue from data center construction alone to reach over $4.6 billion by 2026, up from $3.6 billion in revenue in 2024.

“The hyperscale data center market is projected to grow 10% to 20% annually in the next five years,” said Johnson. “... There’s still a tremendous amount of opportunity for us to build both in terms of projects and as an organization in this sector.”

Energy projects to power AI

That momentum in the data center sector will propel activity in the power sector as well, said Kassalen.

U.S. data center energy consumption will likely triple in the next three years and could consume as much as 12% of national energy usage, according to the Department of Energy. That leaves ample room for future power projects, said Kassalen.

“This surge in energy demand is fueled by trends such as the explosive growth of AI, the expansion of cloud computing and ongoing advancements in digital transformation,” said Kassalen. “These developments are expected to sustain and accelerate demand for new data centers, creating opportunities for power construction projects.”

But those forecasts could be overstated. China-based DeepSeek claims to have developed a more cost-efficient AI model, which has led some investors to question whether these massive data centers will remain necessary.

Blackstone COO Jon Gray acknowledged concerns from investors during a recent earnings call, but maintained broader AI adoption should still sustain demand for data center construction.

“We’ve obviously been spending a lot of time the last week looking at the impact of DeepSeek,” said Gray during the earnings call. “We still think there’s a vital need for physical infrastructure, data centers and power.”

About 32% of contractors surveyed by AGC, up from 25% last year, expect the value of power construction projects to be higher in 2025 than 2024. That’s buoyed by Trump’s plans to support domestic oil and natural gas production, said Kassalen. Tech giants are also increasingly turning to nuclear power to meet these growing energy demands, according to CBRE, a Dallas-based commercial real estate services firm.

Kassalen added Trump’s policy direction suggests there may be a rollback of many restrictions on drilling, for both onshore and offshore projects. Trump issued directives to speed up permitting for energy infrastructure projects, using emergency regulations under laws like the Clean Water Act to ensure faster approvals for oil, gas, nuclear and coal developments.

These will lead to a greater demand for contractors that can perform this type of work, Kassalen said.

“From a construction standpoint, the push for expanding nuclear and fossil fuel projects could significantly benefit the industry. Increased energy development would drive demand for related infrastructure, such as new roads, pipelines, processing facilities and other support systems,” said Kassalen. “This prioritization of fossil fuels, paired with potential support for nuclear energy, positions the construction sector to play a key role in supporting the nation’s energy goals.”

Manufacturing projects

The onshoring of U.S. manufacturing facilities, a key focus of the Biden administration, appears likely to flourish under the Trump administration as well, said AGC CEO Jeffrey Shoaf during the trade association’s construction outlook webinar.

Over the past several years, efforts to revive American manufacturing spurred over $988 billion in private company investment after decades of offshoring. These projects, scattered across the country, include multibillion-dollar biotechnology facilities, chip fabrication plants and electric vehicle battery factories.

Trump’s America First plan includes enhanced tax breaks and streamlined permitting processes for manufacturing plants, according to The Bonadio Group, a Rochester, New York-based accounting and consulting firm. These measures aim to reduce barriers, boost domestic production and position the U.S. as a leader in the manufacturing sector.

Contractors remain optimistic momentum in the space will continue, said Ken Simonson, AGC chief economist, during the AGC webinar. About 25% of contractors surveyed by AGC, up from 15% last year, expect the value of manufacturing construction projects to be higher in 2025 than 2024.

Roads and bridges

With Trump taking office, expect “a greater focus on more traditional infrastructure like roads and bridges,” according to Alex Etchen, vice president of government relations with Associated General Contractors of America.

With the Infrastructure Investment and Jobs Act expiring in September 2026, the Trump administration will have the opportunity to craft its own surface transportation reauthorization bill, shaping transportation policy for years to come, experts at Miami-based law firm Holland & Knight wrote in a brief. That likely means more emphasis on highways.

“Although some GOP lawmakers are supportive of high-speed rail, interstate highway development, which congressional Republicans view as more beneficial to rural Americans, will undoubtedly take precedence,” according to the brief.