THE WEEKLY ROUNDUP
INTELLIGENCE FOR CONSTRUCTION LEADERS
Inflation's Back, Reshoring's Fake, and the Negotiation Mistake Every Founder Makes
Wholesale inflation hit its highest annual rate since 2022 this week, with the Iran war pushing energy costs sharply higher and rate cuts effectively off the table. Trump and Xi are in Beijing working out a new trade framework. On the other hand, the April jobs report splits the industry cleanly in two.
TOP HEADLINES
Wholesale Inflation Just Hit 6% Annually, the Highest Since 2022
Wednesday's PPI came in well above expectations: wholesale prices rose 1.4% in April and 6% on the year, driven by a 15.6% jump in gasoline costs tied to the Iran conflict. Markets have priced out any Fed rate cuts before year-end. For construction firms managing input costs and project financing, the outlook just got tighter. (More)
Trump and Xi Are in Beijing. A $30 Billion Trade Framework Takes Shape
The summit this week is moving toward a "managed trade" framework, each side expected to identify around $30 billion of goods for targeted tariff reductions. The US has stepped back from demanding China restructure its economic model entirely. For contractors watching steel, aluminum, and copper costs, the outcome matters. (More)
Construction Gained 9,000 Jobs in April, but the Residential Sector Lost Ground
Nonresidential added 19,000 positions in April while residential shed 10,400, with data center construction spending up 34% year over year driving the gap. AGC CEO Jeffrey D. Shoaf is already warning: "The more communities do to restrict construction of data centers, the more likely future construction growth will be dampened or even decline." (More)
BEST MOMENT THIS WEEK
We hosted four construction tech founders who've collectively exited for over half a billion dollars: Dustin DeVan (BuildingConnected), Yves Frinault (FieldWire), Mo Akbari (HoloBuilder), and Zach Scheel (Rhumbix). The conversation covered negotiation leverage, BATNAs, lockboxes, and post-acquisition autonomy. Then Dustin dropped the line that stole the room.
"I also wish I had an employee attorney and I wish I had not bent on traveling. I shouldn't have let them ever give me anything other than first class. I should have helped her on that. I could have got that one through. I know I could have. And too many, too many trips where I was in economy on the company. Upgrading myself and it really annoyed me."
It became the running joke of the entire roundtable. But behind it is the real lesson: the things you forget to negotiate at signing are the things that grind on you for years.
3 READS AND WATCHES
Is AI playing out like the China shock? Apollo's chief economist argues the patterns look nearly identical, and based on how the China shock resolved, that may be reassuring. Read on Fortune
Bond markets are too calm about sticky inflation. 30-year Treasury yields hit 5% for the first time since 2007 this week, yet markets still aren't pricing in a Fed hike. The gap between the data and market complacency is worth watching. Read on CNBC
The reshoring boom isn't in the data. Manufacturing construction spending has fallen since 2024 with none of the predicted post-tariff surge materializing. Data centers and power infrastructure are carrying the growth. Read on IoT Analytics
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