2019 is gearing up to be the year of infrastructure spending.
If you’ve been following recent political news, you may have heard about Congress and President Trump’s robust plan to invest heavily in the United States infrastructure spending over the course of ten years.
A White House document explains, “We need to permanently fix the Nation’s infrastructure deficit to improve our quality of life and strengthen our economic competitiveness.”
The Guardian reports that Trump, who has seen much of the world, has cited the declining nature of our country’s infrastructure; noting that we no longer have one of the best, but in fact one of the oldest. It’s been part of his plan since he took office to invest more dollars in infrastructure. Fortunately, the House and Senate alike seem to be on board with this plan.
So what does all this infrastructure spending amount to for the construction industry?
Quite a lot – and it’s already started.
The Guardian reports that as of Nov. 11, stocks of companies like United Rentals, Vulcan Materials, and Caterpillar – all of which support the construction industry – have risen as a result of recent announcements in support of infrastructure spending.
That’s not all, though. With this $1.6 trillion dollar infrastructure plan in the works, the construction industry should expect to see billions of dollars from the federal government over the next few years.
Here’s six projects that are eager to receive funds from an infrastructure spending plan.
- Rural community needs: $50 billion could be allocated to formula grants that will address rural infrastructure needs like broadband internet service.
- Transformative projects: $20 billion might go to commercially viable transformative projects that, as the White House budget fact sheet explains, “are capable of generating revenue, provide net public benefits, and would have a significant positive impact on the Nation.”
- Federal capital revolving fund: $10 billion will possibly be set aside to establish a revolving fund that will finance purchases and construction on Federally-owned property. It provides the funding needed for these projects so they can be renovated.
- Public land investment: While there is no established dollar amount target yet, this budget item could include an Interior Public Lands Infrastructure Fund to support investments in public land.
- Real property reforms: This portion of the bill would support selling off Federal property that isn’t used or needed in order to generate revenue to improve other Federal facilities. It also includes building more facilities to serve veterans.
- Federal credit programs: $14 billion could go to funding Federal credit programs that finance infrastructure projects, and will now also include sectors like airports and ports. Airports are one area in particular both parties agree are in dire need of updating.
In addition to each of these areas getting attention (and funds) from the government, another area that they are looking to improve on with this initiative is the permit process. There are several proposals looking to streamline permitting in order to accelerate projects without losing the environmental safeguards.
From where you’re sitting, the future for construction continues to look bigger and brighter. Now is the time to start making some plans – hire when you can, stock up on your inventory, and make those technology investments. Big things are coming – get ready!
