Construction and other sectors expect to benefit from historic infrastructure investment.
In what US President Joe Biden is calling an “enormous win for the American people,” the bipartisan $1 trillion Infrastructure Investment & Jobs Act was signed into law last week. It’s a milestone moment for government investment in public projects. It promises to create jobs through major spending projects across the United States in the transportation system, including highways, roads, bridges, ports, airports, and public transportation. Here’s a partial spending breakdown:
- Repairs the nation’s aging highways, bridges and roads ($110 billion)
- Five-year highway reauthorization ($370 billion)
- Permitting reforms to expedite project delivery
- Ports ($17 billion)
- Airport ($25 billion)
- Drinking and wastewater ($55 billion)
- Power ($73 billion)
- Broadband infrastructure ($55 billion)
Different sectors salute bill signing
The news was applauded by various industries hoping to benefit from the massive investments. The Associated General Contractors of America (AGC), which joined Ritchie Bros. for our Inside Edge industry panel in September for a discussion on key topics impacting the construction industry, said the bill was “the kind of funding needed to modernize the country’s aging and overburdened infrastructure.”
The American Road & Transportation Builders Association called it “the most significant measure in more than 50 years” and “welcomes the opportunity to use these historic investments to deliver infrastructure outcomes that will improve the quality of life for all Americans.” Meanwhile, the Association of Equipment Manufacturers added that it was a “win for bipartisanship and a once-in-a-generation investment in the future of our country.”
US public broadcaster PBS provided a digestible breakdown of the bill and where money is expected to be allocated.
International Construction closely examined the key areas where investment opportunities exist in the massive infrastructure bill. The media outlet also posted a video interview with Peter Comstock, Associated Builders and Contractors (ABC) senior director of legislative affairs, about the bill.
The Wall Street Journal posted an article looking at the role US manufacturers will play in the bill. Public works projects will create demand for maintenance equipment and construction supplies, and potentially push prices higher. Manufacturers expect to also benefit from having refurbished and expanded ports, airports and roads in place, according to the article.
The State of California could see hundreds of thousands of highway and transit-related jobs over the next five years because of the new federal infrastructure plan, according to the Sacramento Bee. California is slated to get $25 billion for highways, $4.2 billion for bridge replacement and repair and $9.45 billion for public transportation from the infrastructure bill over five years.
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