Rumors have been circulating that the federal government is ready to pour a lot of funds into U.S. infrastructure. Beyond rumors, though, what is the real economic outlook for our industry? Below are some key Bridge Industry Economic Predictions and what we can expect throughout 2018.
Strong Overall Outlook
With a dropping unemployment rate and low inflation, the overall outlook for construction growth in 2018 is very positive. General construction work is estimated to grow by five percent. More specifically, signs indicate that the Southern and Western United States will see the biggest impact on growth. While the cost of building materials is likely to rise by a little over two percent, overall industry growth is still expected.
Bridges and Roads
Bridge Industry Economic Projections estimate that bridges and roads will be the biggest growth segment in the nonbuilding sector. This is in part due to the government’s Infrastructure for Rebuilding America (INFRA) program. This program will fund up to 10 highway and bridge projects. However, it has not yet been voted on.
State by State
The overall growth of road and bridge construction may seem minimal when applied to the entire U.S. as a whole. However, some states will see more growth than others. According to the American Road and Transportation Builders Association (ARTBA), California, Florida, New York, Hawaii, Virginia, and Washington are poised to see the most local growth in the construction industry. Additionally, total spending on public bridge and tunnel construction is expected to top out around $31.3 billion, a slight increase over 2017.
Signs for a Strong Future
Most assume that the federal government will pass INFRA, adding funds to the construction industry in 2018 and early 2019. These projects would undoubtedly bring long-term growth for years to come. Further, with nine percent of the U.S.’s bridges and roads deemed structurally deficient and in need of repair, the need for bridge and roadway construction will likely continue for decades.
To find out more about Bridge Industry Economic Projections and what U.S. Bridge is doing to help, please contact us today. At U.S. Bridge, we have designed and manufactured bridges for over 80 years, providing the pathways that keep America moving.
- 2018 North American Construction Forecast by Oldcastle Business Intelligence
- ARTBA 2018 Transportation Construction Market Forecast by the American Road and Transportation Builders Association