A new report shows the construction industry in the United States is expected to grow steadily over the next four quarters and continue over the next three years, reaching 1,749,898.1 million by 2027. The growth can be attributed to the US government’s investment in domestic manufacturing via the CHIPS and Science Act as well as the infrastructure investment through the Infrastructure Investment and Jobs Act.
The CHIPS and Science Act
The CHIPS and Science Act was signed into law by President Biden in August 2022. The goal of the act is to revitalize domestic manufacturing, create more jobs, strengthen supply chains and accelerate industries that will be essential in the future. In September 2023, the US Department of Commerce announced it was adding more funding to the act to help smaller businesses and projects. The newest funding opportunity is open to projects with capital investment below $300 million for the construction, expansion or modernization of US commercial facilities for semiconductor materials and manufacturing equipment. These projects will produce equipment, chemicals, gases and other materials that are critical to manufacturing semiconductors in the US.
Infrastructure Investment and Jobs Act
On Nov. 6, 2021, Congress passed the Bipartisan Infrastructure Deal or the Infrastructure Investment and Jobs Act. Its aim was to pour a trillion dollars into the country’s infrastructure, including transportation, green energy and broadband, adding 1.5 million jobs per year. According to the White House the Act will:
- Invest $55 billion to improve water infrastructure and eliminate lead service pipes. It will expand clean drinking water access to households, businesses, schools and childcare centers.
- Deliver $65 billion to invest in broadband infrastructure deployment, including rural areas, and lower prices for internet service.
- Invest $110 billion to repair roads and bridges and support major transformational projects. The legislation also includes the first ever Safe Streets and Roads for All program to support projects to reduce traffic fatalities.
- Invest $89.9 billion to modernize and continually fund public transit for the next five years, including buses, rail cars, stations and tracks, signals and power systems, expanding public transit options. It also includes reducing greenhouse emissions with zero emission vehicles.
- Earmark $17 billion for port infrastructure and waterways and $25 billion for airports including addressing repair and maintenance backlogs, reducing congestions and emissions near ports and airports and driving electrification and other low-carbon technologies.
- Create $66 in rail funding, the largest investment in passenger rail since Amtrak. It will eliminate Amtrak maintenance backlog, modernize the Northeast Corridor and bring rail service to areas outside the northeast and mid-Atlantic.
- Invest $7.5 billion to build out a national network of EV chargers in the US. The legislation will fund the deployment of EV chargers along highway corridors to facilitate long-distance travel.
- Deliver $65 billion for the largest investment in clean energy transmission and grid in American history. It will upgrade the US power infrastructure by building thousands of miles of new, resilient transmission lines to help expand renewable and clean energy.
- Invest $50 billion to protect US infrastructure against droughts, heat, floods and wildfires and a major investment in weatherization as well as cyber-attacks.
- Invest $21 billion to clean up legacy pollution like Superfund and brownfield sites, reclaiming abandoned mine land and cap orphaned oil and gas wells.
Federal Money has Already Been Awarded
Federal funds from the Infrastructure Investment and Jobs Act are now being administered to states and local governments. As of May 2023, the White House says more than $220 billion has been awarded that will fund more than 32,000 specific projects and awards in all 50 states plus Washington, D.C. and territories.
And, since CHIPS was signed into law, companies have announced more than $166 billion in manufacturing in semiconductors and electronics, and at least 50 community colleges in 19 states have created or expanded programming to help US get the training needed for jobs in the semiconductor industry. In total, in the last several years companies have announced over $231 billion in commitments in semiconductor and electronics investments in the US.
Is Your Company Ready to Compete?
An increase in federal funding is helping the construction industry grow and that translates into more potential opportunities for companies. However, if your employee processes are slow, you may not be able to compete for work coming down the pipe. Arcoro’s HR management solutions can help make your employee processes more efficient, saving you both time and money and helping you potentially prepare to ramp up for work funded by federal, state and local dollars.
From recruitment to Core HR and learning and development, Arcoro’s modular solutions work together to streamline your HR processes, giving your staff the ability to take on more work, like federal projects.