Issue No. 21 • Wednesday, May 28, 2025 • www.mbex.org



If you're reading this at your desk, odds are there's a century-old invention within arm's reach --- Scotch tape! That humble roll of clear magic turns 100 this week. It was first dreamed up by a 23-year-old research assistant by the name of Richard Drew who worked at a little Minnesota outfit you might've heard of --- 3M. The goal? Create a tape that was sticky enough to help with two-tone auto paint jobs, but not so sticky it peeled everything off. Mission accomplished. The name "Scotch" came from a jab one of the car-painters made when he asked, "Why so Scotch with the adhesive?" (Back in the 1920s, Scotch was a another term for "cheap.") The rest is history. Happy 100th, Scotch!

By Ashlee | ah@mbex.org

Membership & Communications Manager

Five Quick Things To Know / Do This Week:

1.) It's the Final Countdown - The deadline to submit applications for the 2025-2026 MBEX / TBG Construction Scholarship is THIS SATURDAY (May 31) at 11:55pm. Full applications, including all requested documentation, must be submitted via the Kaleidoscope portal by the deadline, or applications will be disqualified.

2.) All Aboard No More? - Last week, Minnesota lawmakers voted to redirect $77-million of approved state funding from the Northern Lights Express project, the long-debated, proposed passenger rail service designed to connect the Twin Cities and Duluth, making the project "effectively dead."

3.) On the MBEX Blog - Inside the latest Building Buzz, we're covering "Project Tiger" south of Rochester, Empire Hotels plans to redevelop a vacant site across from the Mayo Civic Center, the demolition of the Milwaukee DNR building to make way for a $55M arts center, and more.

4.) Embrace the Change - Why ESG matters more than ever in today's construction industry

5.) Collectively Commiserate - Returning to the office after Memorial Day weekend 😒 👎 🔙

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Inside This Issue:

• Next Week: Don't miss the MBEX Member Appreciation BBQ

• Economic Roundup: Trade policy continues to cloud outlook

• Peek Inside: What projects were inside May's Pre-Plan Pipeline

• $44M Awarded: MPFA announces funds for 15 statewide wastewater / drinking water infrastructure projects

• MBEX Events: Join us at an upcoming event this summer

• Five Headlines: Minnesota Capitol update now that the regular session has ended, President Trump grants extension to European Union on tariff hike, why veterans make good construction leaders, Ric Robotics shows off its giant construction robot coming to job sites in 2026, and why construction laborers are hesitant to adopt wearable technology

• Project of the Week: $100M Sports Center project seeks new Twin Cities site

• Industry Event: Federal Reserve Bank of Minneapolis presents results of their Spring Construction Survey this Wednesday (May 28) - Virtual Event - 9:00am

• Member Benefit: Work clothing, PPE, and facility services with UniFirst

MEMBER NEWS + EVENTS

NEXY WEEK: Member Appreciation BBQ

If you haven't RSVP'd yet for our Member Appreciation BBQ, consider this your friendly reminder to snag your spot!

Famous Dave's is firing up the grill next week, and it's our way of saying thank you for being part of the MBEX construction community.

📅 DATE: Wednesday, June 4

🕒 TIME: 11:00am - 1:00pm

📍 LOCATION: Minnesota Builders Exchange (1123 Glenwood Avenue, Minneapolis, 55405)

💲COST: 2 complimentary tickets to each member company; $20 per person additional

Not sure it's worth breaking away from the jobsite or your desk for a couple of hours?

Here are three solid reasons why you should join us:

Free Lunch, Done Right

We're not talking about your standard sandwich tray. Expect fresh-grilled BBQ ribs and chicken, sweet corn, baked beans and corn bread, and plenty of cold beverages --- because you deserve it.

Kick Back and Recharge

Midweek breaks are good for the brain. Come soak up the sunshine, grab a plate, and enjoy some well-earned downtime.

You Might Walk Away with Something Extra

Door prizes are up for grabs, and you can't win if you're not there!

RSVP now and come enjoy good food, great vibes, and a big thank-you from all of us at MBEX. See you at the BBQ!



Trade Policy Continues to Cloud Economic Outlook

Construction-specific economic data released in May provide mixed signals.

Nonresidential construction spending fell sharply in April, and industry-wide job openings are down significantly over the past year. At the same time, backlog rose to a 20-month high, the industry continues to add jobs at a faster-than-economy-wide pace, and contractors are broadly optimistic about the next six months.

Nonresidential Construction Spending Plunges in March

Nonresidential construction spending fell sharply in March, and the declines were spread across a majority of subsegments.

Data center construction activity, which has accounted for about 70% of the increase in nonresidential spending over the past year, is one of the few sources of nonresidential momentum. While manufacturing related construction activity remains historically elevated, it has leveled off over the past year, rising just 3.7% since March 2024.

Despite Rising Iron & Steel Prices, Input Costs Tame for Now

Overall construction input prices inched lower in April, but that's largely due to falling oil prices. Inputs affected by recent changes in trade policy, like iron and steel, are experiencing rapid price escalation.

While the 90-day pause on some tariffs on Chinese imports has reduced economic uncertainty, the 25% tax on steel and aluminum imports appears set to remain in place indefinitely. As a result, input prices will likely continue to rise in the coming months.

Construction Employment Continues to Grow Despite Signs of Weakening Demand

Construction employment rose by another 11,000 positions in April, and the majority of that growth occurred in the nonresidential segment.

Despite ongoing employment gains, the industry has 90,000 fewer jobs openings than it did one year ago, and the hiring rate fell to the lowest level ever recorded in March. These dynamics suggest that contractors are not reducing their staffing levels, but are hiring only when absolutely necessary.

Backlog Rises, Contractors Remain Broadly Optimistic

ABC's Construction Backlog Indicator increased to a 20-month high of 8.7-months in April, with almost all of the recent gains concentrated among contractors with greater than $100-million in annual revenues.

Contractor confidence also remains elevated despite uncertainty related to trade policy. Notably, 22% of contractors had a project delayed or canceled in April due to tariffs, while 87% have been notified of tariff-related price increases.

Looking Ahead

The recently announced 90-day reduction in tariffs on Chinese imports has improved the outlook and provided at least a sliver of clarity regarding the future path of trade policy.

Even so, both uncertainty and import taxes are expected to remain elevated in the near term despite softer inflation data in recent months. As a result, the nonresidential construction segment may struggle to gain momentum over the next several months.

Nonresidential Spending ($ - Millions)

For a deeper dive, check out Construction Executive's Construction Futures monthly economic roundup.



The May Pre-Plan Pipeline Has Arrived --- and It's Packed

May's Pre-Plan Pipeline recently dropped, delivering 207 early-stage project leads spanning 54 cities and counties across Minnesota and beyond. If you're looking to stay ahead of the curve, this is your go-to resource for what's coming next in commercial construction.

Exclusively for members with Premium Access, the Pre-Plan Pipeline is your monthly heads-up on projects still taking shape --- from new proposals and planning discussions to possible developments just starting to stir.

Curious what was inside May's edition? Here's just a glimpse:

• A massive 46,200-square-foot indoor entertainment center in Apple Valley with bowling, axe-throwing bays, an arcade, and more
• A 164-unit workforce housing development in Cottage Grove
• A new 20-unit memory care facility in Edina
• A 36-unit apartment building coming to Grand Marais
• A sleek new, two-story office building in Mankato
• A restaurant with patio and drive-thru in Rosemount
• A 25,000-square-foot gym & classroom expansion in St. Paul
• ...and 200 more projects leads waiting to be explored.

Want a closer look? Click the image below to check out the highlights from the May issue and see why this monthly publication is a must-read for our members.

Complete with links to project sources (when available), the Pre-Plan Pipeline is automatically sent to all MBEX member companies with Premium Access services as part of their membership.

Not receiving it?

(1.) Check your spam / junk folder. If it's there, move it to your main inbox and mark MBEX as a safe sender.

(2.) Still not seeing it? Email Ashlee to be added to the list.

Not a Premium Access member but want to be? Give us a call to upgrade!



Public Facilities Authority Announces $44M in Project Awards

The Minnesota Public Facility Authority (MPFA) announced more than $44.2-million in loans and grants to 15 wastewater and drinking water infrastructure projects throughout the state on May 22, 2025.

The MPFA administers and oversees the financial management of revolving loan funds and other programs that help local units of government build facilities for clean water, drinking water, and transportation in infrastructure projects.

Projects and MPFA funding amounts are listed below. Funding details for each project are available on the MPFA website (2025 Awards).

AITKIN - $2,348,190

Replacement of an undersized and aged water tower to provide adequate water delivery for the region.

APPLETON - $3,543,680

Funding for two projects: one to rehabilitate a sanitary sewer and the other to replace the watermain on Schlieman Avenue.

CROSBY - $3,530,610

Funding for two projects: one to replace the sewer main and the other to replace the watermain between Main Street and 2nd Street Southwest; and 3rd Avenue Southwest and 3rd Avenue Southeast.

DETROIT LAKES - $9,883,495

Construction of a new 1.5-million-gallon water tower and removal of existing water tower.

EVELETH - $694,679

Installation of a watermain.

HENNING - $7,287,090

Improvements to the Henning water treatment facility.

KANDIYOHI COUNTY - $47,000

Evaluation of wastewater alternatives for the South / Southwest areas on Big Kandiyohi Lake.

MAZEPPA - $5,000,000

Installation of a new wastewater treatment system with a new lift station, pre-treatment facilities and aeration, disinfection and bio-solids processing and storage facilities.

ROSCOE - $60,000

Evaluation of wastewater alternatives for the city's large subsurface sewage treatment systems.

SILVER LAKE - $3,114,000

Improvements to the collection system and pond control structure, and construction of a new lift station.

ST. PAUL - $568,334

Removal of accumulated sediments and improvement of maintenance access and hydraulic and water quality performance at the Flandrau-Case stormwater pond, including expansion of the basin's permanent and floor storage volume.

TOWER - $6,055,636

Upgrades to a treatment plant, seal four wells, and rehabilitate or demolish pump houses.

WINSTED - $2,085,408

Installation of a new well.

The MPFA helps cities replace aging infrastructure and make system improvements to protect public health and improve water quality. Since its inception in 1987, the MPFA has provided $6.9-billion for public infrastructure programs statewide.



A valuable benefit of an MBEX membership is invitations to our social and educational events; by being an employee of a member company, you too can take advantage and attend any and all MBEX-sponsored events.

** indicates a newly added event

May 28 - Regional Economic Conditions: Construction

Are current and backlogged projects up or down? Are labor and other input costs on the rise? What do contacts expect in the months ahead? Join Regional Outreach Director of the Federal Reserve Bank of Minneapolis, Erick Garcia Luna, as he hosts a webinar to discuss these and other results from the spring survey of construction companies across the Ninth District. Sign Up Here

June 4 - Member Appreciation BBQ

Join MBEX for a casual afternoon of Famous Dave's barbecue, cold beverages, a handful of door prizes, and great company and networking. Register Here

June 17 - Twin Cities Golf Tournament - **Teams are SOLD OUT**

While playing 18-holes of golf may not be in the day's plans, there are still awesome sponsorship opportunities available, such as hole sponsorships, dinner sponsorships, and others. Register for Lunch / Dinner | View Available Sponsorships

June 19 - Online Plan Room Demo

From navigating the Deskpad, setting up filters, understanding project information, and adding your company to a project's bidders lists, this free one-hour session is a great introduction to our Online Plan Room. Register Here

July 4 - 4th of July

MBEX will be closed in observance of the 4th of July holiday.

July 23 - Lake Superior Harbor Cruise

Join MBEX for an evening sailing on Lake Superior, and see the Duluth-Superior Harbor, Lift Bridge, canal, and city as you may not have before. Space is limited to the first 150 people who register. Register Here

August 14 - Sporting Clays Scholarship Fundraiser

Aim, shoot and pull to raise funds for the MBEX Construction Scholarship at this great annual MBEX outdoor event at Game Unlimited. Shooter packages include a 100-clay shoot, post-shoot social, dinner, awards, and door prizes. Teams can have a maximum of six shooters. Register Here

August 20 - Golf North

Come socialize and network on the greens of Duluth's Ridgeview Country Club for what we FORE-see as a great event. Golf packages include lunch, 18 holes of golf, golf carts, post-golf social, dinner, and short awards program. Register Here



CONSTRUCTION HEADLINES

Five construction-related headlines you need to read over the next coffee break.



MINNESOTA LEGISLATURE 2025

🏛️ Minnesota Capital Update: End of the Regular Session

The 2025 regular Minnesota legislative session ended on the evening of May 19 with more on the "to do" list than the list of what was finished. After the leadership agreement setting targets for the $66-billion budget was announced, everyone knew it would be difficult to finish all work on time. Of the 17 finance and policy bills that are in a conference committee, only 8 made it through to the Governor's desk. The following bills have not been resolved: Commerce; Higher Education; Human and Health Services; Transportation; Jobs, Labor & Workforce Development; Energy; Environment; Education (Pre-K, K-12); Capital Investment / Bonding; and Tax. The Governor will call a special session once an agreement is reached on the remaining budget bills, with the goal to have the work completed by June 1. (AGC of Minnesota - Government Affair News)

TARIFFS

🚧 Trump Grants Extension to European Union on Tariff Hike

President Trump announced Sunday (May 25) he's granting an extension to the European Union (EU) on the timeline to strike a deal to avoid his sweeping 50% tariffs --- putting back the deadline to July 9. The tariffs were set to take effect at the beginning of June. The EU is now facing the same 10% tariff rate as other countries, but that is scheduled to rise to 20% in early July if a deal is not reached with Trump's previous 90-day deadline. (Politico)

LABOR & WORKFORCE

🪖 Why Veterans Make Good Construction Leaders

Unlike conventional entry-level hires, veterans often arrive with field-tested soft skills, such as problem-solving, small-unit leadership and logistical coordination. Those skills are often more difficult to teach than technical construction skills. That's why rather than relying solely on college recruiting, firms should consider veterans as a parallel pipeline for field leadership roles. (Construction Dive)

CONTECH ROBOTICS

🤖 RIC Robotics Shows Off Giant Construction Robot Coming to Job Sites in 2026

Ric Robotics teased a 20-foot tall, AI-driven construction robot it calls, "the world's first Giantroid." Unlike humanoid robots that are designed to replace humans in a 1:1 swap, Ric Robotics' latest concept, the Zyrex Giantroid, is purpose-built for construction and capable of performing both heavy-duty tasks, like heavy material handling and demolition, as well as delicate trades like welding, assembling, trimming, carpentry, and more. (Electrek)

JOSBITE SAFETY

🤔 Hesitancy in Wearable Technology Adoption

According to a study by the National Association for Biotechnology published earlier this year, 46% of construction laborers are not willing to use biometric wearable sensing devices and 59% are not willing to use tracking wearable sensing devices. The biggest concern about this technology was privacy. Workers fear that the device might capture data they consider personal and private. (EHS Today)

PROJECT OF THE WEEK

Proposed $100M Sports Center Project Looks for New Site

Read more on Finance & Commerce



Shawn O'Keefe isn't giving up on his dream of bringing a $100-million regional sports center to the Twin Cities, even though his long-preferred home for the project --- the city of Blaine --- is now out of the running.

O'Keefe, one of the partners in the proposed center, said his team had been working with Blaine for about four years on the 300,000-square-foot project, known as the Minnesota Tournament Wellness Center. The project would generate an estimated $25-million annually in economic impact for the host community.

But that wasn't enough to convince the city to authorize a referendum for the project, which would include $50-million in private investment and $50-million in public funding.

His team still hopes to move forward with the project, and the partners have been talking with other potential host cities including Mounds View, Arden Hills, and Burnsville. One possible landing spot is Rice Creek Commons, also known as the former Twin Cities Army Ammunition Plant site in Arden Hills.

In broad strokes, O'Keefe said the project would offer "three facilities in one," including a "premium fitness and wellness center," a community center, and the "largest indoor court-based tournament center in Minnesota."

Specific elements include 13 full-size basketball courts, six to 12 professional pickleball courts, a high-end fitness center, a training center, a "fun zone," a childcare center, a media / theater space, classrooms, community space, and more.

Project partners, in addition to Shawn O'Keefe, include James O'Keefe and Shaun Jensen. The partners are collaborating with Clearwater, Florida-based Sports Facilities Co., and Populous Architects.



PICTURED ABOVE: Partial view of a floor plan concept for the proposed $100-million Minnesota Tournament Wellness Center project.

UPCOMING INDUSTRY EVENTS

Regional Economic Conditions: Construction

Presented by the Federal Reserve Bank of Minneapolis

DATE: Wednesday, May 28

TIME: 9:00am - 9:30am CST

LOCATION: Virtual Event

COST: Free

Join Regional Outreach Director Erick Garcia Luna as he hosts a webinar to discuss the results from the spring survey of construction companies across the Ninth District.

• 9:00am - 9:05am - Welcome by Haley Chinander
• 9:05am-9:20am - Presentation by Erick Garcia Luna
• 9:20am-9:30am - Q & A
• 9:30am - Webinar concludes

Twice a year, regional economists at the Federal Reserve Bank of Minneapolis survey construction companies to gauge the sector’s performance and overall outlook. Are current and backlogged projects up or down? Are labor and other input costs on the rise? What do contacts expect in the months ahead?

MEMBER BENEFITS

Benefit of the Week: UniFirst

MBEX Members, via National Purchasing Partners (NPP), can enjoy specially negotiated rates from UniFirst, a full-service employee uniform and facility service provider.



Nearly 2-million people go to work each day in a uniform hygienically cleaned, finished and delivered on a regular schedule by UniFirst.

Sign up today to schedule an on-site consultation and learn how to keep your employees, your facility, and your bottom line looking great.

MBEX Members can take advantage of the following savings:

• 30% - 60% off rental and leasing rates;
• Negotiated lost / damage costs;
• Discounted personalization and setup charges;
• 20% off UniFirst Workwear Direct catalog purchases; and
• Free pressing of all work shirts.

UniFirst provides uniform services for businesses of all sizes. Along with workwear apparel, they also provide safety clothing, PPE, and facility services.

With over 80 years of experience, UniFirst has built their reputation on quality products, dependable service and great value.

When you're ready to start taking advantage of NPP special pricing, sign up and log in to arrange an on-site consultation and learn more about the project and service options available to your business.

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National Purchasing Partners (NPP) is a trusted savings and solutions provider for businesses and their employees. By leveraging the purchasing power of more than 350,000 members, NPP can provide top discounts and special B2B pricing to businesses of all sizes. NPP members enjoy exclusive deals on a catalog of useful items for both work and play. Membership is free and there is never an obligation to purchase.

Plus, when you enroll via our special NPP sign-up page, MBEX receives a small royalty to further support our member services.

PROJECT INFORMATION + UPDATES

• Total Projects Received at MBEX from 5/19/2025 - 5/23/2025: 93

• Total Project Leads Reported on at MBEX from 5/19/2025 - 5/23/2025: 11

• Total Active Projects Received / Reported on at MBEX as of 5/27/2025: 329

• Total New Projects in the Online Plan Room as of 5/27/2025: 2,566

Click the button above to view the most recent project data from 5/21/2025 - 5/27/2025.

For information about the Bulletin's content, technical issues, or to place an ad (such as a Minority

Notice, Job Posting, or Event Notice), contact Ashlee, Membership + Communications Manager.

The MBEX Weekly Bulletin brought to

you in part by The Builders Group (TBG).

UPCOMING MBEX EVENTS

• May 28 - Regional Economic Conditions: Construction

• June 4 - Member Appreciation BBQ

• June 17 - Twin Cities Golf Tournament - Teams Sold Out | Sponsorships Available

• June 19 - Online Plan Room Demo

• July 4 - 4th of July - MBEX Closed

• July 17 - Online Plan Room Demo

• July 23 - Lake Superior Harbor Cruise

• August 14 - Sporting Clays Fundraiser

• August 20 - Golf North

• September 10 - Sporting Clays North

Connect with the Builders Exchange:

Revisit Past Bulletins:

May 21 - No. 20 | May 14 - No. 19 | May 7 - No. 18 | April 30 - No. 17 | April 23 - No. 16

Information within the MBEX Weekly Bulletin are obtained from sources deemed reliable. The Minnesota Builders Exchange (MBEX) does not assume responsibility for its completeness or accuracy. You are urged to check your own sources in addition to the information contained in this publication. This issue contains plans and other bidding information received prior to and including the date noted above. The project data within this newsletter is intended for member company's and their employees use only.



2025 BOARD OFFICERS: President - Heidi Sedlacek, KLJ Engineering; Vice President - Brian Kalla, St. Cloud Acoustics; Treasurer - Sean Ochis, Northern Industrial Insulation; Past President - Mike Carlson, Max Gray Construction

2025 DIRECTORS: Kevin Bohrer, Donlar Construction; Ben Bowman, Adolfson & Peterson; Allie Brady, Veit; David Brandt, Schadegg Mechanical; Amanda Eiynk; Matt Lennartson, RJM Construction; Chris Niemand, Frattalone Companies; Jason Rentmeester, Kraus-Anderson Construction; and Nate Sapik, Benson Electric Company

MBEX STAFF: David Siegel - Executive Director; Julie Miller - Executive Assistant/Project Coordinator/Accounting; Ashlee Hartwig - Membership & Communications Manager; Melanie Hendrickson - Events & Membership Coordinator; Jeff Boelter - Project Acquisition & Plan Room Support; Shauna Baska - Project Reporter & Bidders Lists; Ka Yang - Addenda & Apparent Lows; Peggy Esboldt, Madison Gentil & Michelle Siegel - Project Reporters; Don O'Connor - Independent Event Planning Contractor for MBEX 

You are receiving this email because you are employed by a current member company in good standing or have indicated you wanted to receive MBEX's Weekly Bulletin. Unsubscribe from the Weekly Bulletin

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