A generational $1.2 trillion infrastructure plan was put in place to give the country a much-need economical boost having faced one of the worst global crises in modern history due to the Covid-19 pandemic. While legislators hope for the bill to help with inflation and supply chain struggles, industry experts expect it to also benefit the construction industry in a significant way.
From the construction service demand it will create, to the anticipated job opportunities and potentially higher materials costs, the IIJA forecasts steady construction growth through 2025. Discover how your company could benefit from the new legislation, and if you require QA/QC services for a certain project, by contacting experts at G3 Quality, Inc.
How Funding Was Allocated
In November 2021, Congress passed the Infrastructure Investment and Jobs Act (IIJA) with a total ask of $1.2 trillion. Within this number is $550 billion for transportation, broadband, and utilities, $110 billion for roads, bridges, and other large infrastructure efforts, and $40 billion to maintain the health of bridges across the country. About $65 billion was also put towards power infrastructure, while $29 billion went towards electricity grid improvements.
What the IIJA Means for Construction Professionals
For the most part, construction and engineering experts see the opportunity within President Joe Biden’s recent infrastructure bill. Since the legislation will be federally funding a large number of infrastructure projects, the demand for construction services, expertise, and materials is sure to skyrocket. Plus, firms that are used to one-off and smaller jobs will have the opportunity to be contracted out to larger, more long-term projects.
This is expected to result in significant increases to construction spending through 2025. Furthermore, the demand for construction projects and services is sure to boost the number of available construction jobs and open up higher-paying positions. If your construction firm is in a growth stage, your timing may be just right.
Potential Impact on Raw Materials
As construction demands rise and materials become more necessary, they’ll also get more expensive. Cement, for example, is thought to be a major beneficiary of Biden’s new infrastructure bill. Seeing as the U.S. is currently at 90% production capacity and 30% of import capacity for cement, experts see a price increase on the horizon. Additionally, since there aren’t many alternatives for cement, it’s an inelastic product. In other words, cement will still sell even after major pricing changes. Steel is another material of concern, since the U.S. construction market is heavily dependent on finished steel products. Throughout 2022, be sure to pay attention to rising materials costs – especially with necessary materials such as concrete and steel.
Complementary Industries That Will Benefit
Throughout 2022 and over the next few years, we can expect construction companies and complementary industries to see increased revenues. Materials manufacturers will see boosted toplines due to increased demand, which will then affect other industries down the supply chain. Heavy equipment manufacturers, construction software providers, semiconductor manufacturers, and electrical systems suppliers, for example, will also serve to benefit from the need created by Biden’s infrastructure bill.
G3 Quality’s Role
G3 is here to support you through this time of growth, we are industry leaders who are always embracing change and excellence.
Our elite team of engineers and professionals are experienced in providing world-class quality management, pavement engineering, materials design, construction inspection, and testing on infrastructure projects throughout California and the western United States. To learn more about how G3 Quality can contribute knowledge, expertise, consulting, and professional services to your project, contact us.