Senate passed President Biden’s historic $1.2 trillion bipartisan infrastructure plan and the bill has been sent to the House for discussion and a vote. These funds focus on various infrastructure efforts and include $550 billion in new spending with the remaining funds coming from unspent coronavirus relief funds that have already been approved.
The infrastructure bill offers funds for numerous projects, including $303.5 billion spread across five years for federal highway projects; $40 billion in dedicated resources for bridge rehabilitation, replacement, and repairs; $118 billion to take the Highway Trust Fund out of the general fund of the Treasury; $55 billion for water projects; and funds for passenger and freight rail, rebuilding the electric grid, expansion of broadband internet access, modernization and expansion of transit systems, and building a national network of charging infrastructure for electric vehicles.
Will This Help The Construction Industry?
Since the infrastructure bill funds various infrastructure projects, it could increase construction spending by at least two percent while also driving the volumes and prices for aggregates and cement to higher levels. There has been continued demand for single-housing families, especially since housing inventory is already low. With steady infrastructure spending and continuing lower interest rates, there is continued strength in the construction industry for residential projects.
With a greater demand for residential construction than additional funds for infrastructure, then there will be greater demand for construction workers to take on the projects. There will be an increasing need for skilled and trained heavy equipment operators and workers to handle all the different construction roles. With the additional funding for construction, then the demand for construction workers will increase.