The US transportation infrastructure market is projected to reach $280 billion in 2019, according to ARTBA’s annual forecast. In 2018, the industry spend was $267 billion. Most of this growth came from increased investments from local, state and federal governments, and includes:
· Increase by 33 percent ($5.8B) for airport terminal and runway construction
· Spending on public highway and street construction rose 5 percent ($2.7B)
· Growth in spending on port and waterways, private highway and bridge construction due to residential and commercial developments
· Growth in bridges and tunnels projects are expected to grow to $31.7B in 2019.
· Public transit and rail construction will grow $1B to $20B in 2019.
· 11 major airport projects over $1B are underway this year
Congress provided an additional $5 billion over the next four years to boost the investment in federal transportation. This is in addition to the $930 million Congress approved as part of the 2015 FAST Act law, the act that provides long-term funding for surface transportation and infrastructure. Because of this financing, highway construction will increase all across the country.
Per the US Census Bureau, work on private highways, bridges, parking lots and driveways will increase from $65.9 billion in 2018 to $69.1 billion in 2019. Public highway and street work funded by state DOTs and local municipalities will increase by 5 percent in 2019 to $66.5 billion.
However, there are a few industry concerns, which could risk the market growth, such as government delays in project starts due to potential changes in the federal-aid highway program. Other potential risks include rising material prices, such as steel which was up by 14 percent, and labor shortages. Uncertainties created by the steel and aluminum tariffs enacted in March 2018 continue to have an impact on the construction market.
With digitization, we can reduce these risks and make these dollars go even farther. Using tools that automate business processes, remove paperwork, foster collaboration and give visibility from end-to-end can help us remove time spent on unproductive activities, increase productivity and reduce waiting time (on approvals, shipments, equipment, etc.). Command Alkon’s solutions help you keep projects on budget and on time by improving efficiencies both inside the office and outside at the jobsite. Contact Command Alkon today.