After months of bureaucratic stagnation and political tug-of-war, Congress has finally passed the long-awaited infrastructure bill. Despite being stripped down from its original size, this critical piece of legislation still promises to provide a boom to the construction industry. Whether you’re the owner of a construction business or a project manager, you’re probably wondering how this colossal, trillion-dollar bill will benefit you. Let’s find out!
While other industries were clamoring to stay afloat during 2020, the construction sector remained strong. In fact, some businesses even ended with a record year as construction investments were up 5% during this time. This momentum is showing no signs of slowing down especially with the massive influx of funding and attention provided by the recent infrastructure bill. The whole construction industry is expected to reach a compound annual growth rate (CAGR) of 4.75% through 2025. That means more projects, more funding, and more growth for businesses that are able to land construction bids consistently.
More focus on green construction.
Although the majority of the infrastructure behemoth is going towards restoring or repairing America’s current, crumbling infrastructure, a significant portion of the bill is seen as an investment in the green future. Over the past few years, there’s been an increased focus on energy-efficient and eco-friendly construction. While this pressure to adapt can feel like a burden at times, it offers an excellent growth opportunity. It’s important for owners and construction managers to acknowledge the potential in the change and adjust accordingly to keep their business relevant and highly sought-after.
Increased interest from private equity.
The massive flood of public capital to the construction industry is expected to precede a steady flow of private equity interest. This not only means additional funding for construction businesses, but it also represents quicker access to capital when compared to public funds. Private investors have been hesitant in recent years to invest in the construction sector, but the renewed focus brought about by the major infrastructure bill is likely to reinvigorate interest. These investments can help propel construction companies to new heights in shorter periods of time while mitigating financial risks.
Where is the money being spent?
A $1.2 trillion infrastructure bill sounds great, but it’s still pretty ambiguous to construction leaders who are wondering how this spending spree precisely impacts their businesses. In total, the legislation will allocate $550 billion of federal investments into the country’s infrastructure over the span of the next five years. Although the most minute details will be ironed out over the next few years, here’s the most detailed breakdown available:
- $110 billion for roads and bridges
- $65 billion for broadband internet access
- $73 billion for the power grid
- $21 billion on “green” projects
Some of these funds will go towards new construction while others will get invested in repairing and improving current infrastructure.
Finding the right talent for new projects.
As money pours in from both public and private sources and backlogs fill up, construction businesses will begin frantically searching for the right talent to handle these projects. Despite the stimulus of this major infrastructure bill, construction managers still face the difficulties of a worsening labor shortage.
As a significant portion of the construction labor force reaches retirement age, there’s a huge talent gap that project managers have to fill. Between investing in new equipment, bidding for projects, and managing flows of capital, it’s tough to find the time or resources to build the talented team you need to successfully pull off projects and keep clients satisfied.
That’s where Madden Craftsmen can help! As a leading construction staffing company, we specialize in helping construction managers just like you build a qualified, experienced, and highly capable team. Outsourcing this responsibility could be the leg up you need to beat your competition to the surge of investments and projects the infrastructure bill is bringing to the industry.
If you’re struggling to find talent for your projects, you’re in the right place! Madden Craftsmen has been helping local construction businesses find the skilled and experienced construction workers they need to succeed. Contact us to learn more about what we offer. Let’s build something together.