The outlook for the construction industry is optimistic despite talk of an economic downturn. The recent Bipartisan Infrastructure Law creates thousands of federally-contracted jobs and establishes specific infrastructure projects across the nation.
Explore the Infrastructure Law and learn how construction workers can thrive during an unstable market economy.
Bipartisan Infrastructure Law
The Bipartisan Infrastructure Law, enacted in November 2021, represents a commitment to improving our nation’s physical and organizational structures. This historic legislation aims to rebuild American infrastructure, tackle the climate crisis, and create well-paying jobs that create equitable economic growth.
The Infrastructure Law poses improvements in several areas. Its goals include:
● Providing every American with reliable high-speed internet
● Repairing and rebuilding roads, bridges, and tunnels
● Improving transportation and reducing greenhouse emissions
● Delivering clean drinking water to every family
● Upgrading airports and ports to reduce supply chain disruptions
● Making the greatest passenger rail investment since Amtrak
● Building electric vehicle charging stations and vehicle plant construction
The bill’s emphasis on repairing and rebuilding critical infrastructure, like roads, bridges, and tunnels, means more work for those in the construction industry. Federally-contracted jobs also offer benefits like timely payments, solid wages, and stable employment.
Texas and Infrastructure Law
The Infrastructure Law also gives money to certain states to be spent on infrastructure projects. The bill grants Texas $8 billion in funding and identifies 260 specific projects for the funds.
As of July 2022, Texas will receive the following:
● $5.2 billion to build and repair highways
● $115 million to build and repair bridges
● $645 million to improve public transportation
● $508 million for clean drinking water
● 953,000 households receive affordable internet
● $60 million for electric vehicle charging
● $345 million for airports
● $280 million for ports
● $525 million for infrastructure resilience
The Infrastructure Law establishes 260 new building projects in Texas alone. These projects include $10.7 million to restore the Galveston Harbor, $2.5 million to expand the terminals of Laredo International Airport, and $480,000 to the community of Kinney to protect against flooding.
How to Thrive in the Current Market Climate
The Bipartisan Infrastructure Law creates and funds job projects to improve American infrastructure. To get these federal jobs and beat the competition, you must learn to take advantage of the current market climate.
Attract and Retain Talent
It is understandable to want to reduce costs during an economic downturn; however, construction companies should think twice before making layoffs.
There continues to be a shortage of qualified, skilled construction workers and craft professionals. According to a 2022 model, the construction industry needs to attract almost 650,000 new workers to meet the labor demand, which is in addition to the average hiring rate.
Construction companies that maintain a growth mindset will flourish despite high inflation and volatile stock market challenges. Experts are encouraging companies to keep hiring, so they can be prepared when the economy improves.
It is just as crucial for employers to retain their top workers. Consistently providing your clients with high-quality construction work is the best way to get rehired. Your top performers set you apart from the competition.
Target Federal Contracts
The Bipartisan Infrastructure Law establishes 260 specific construction projects in Texas. These federal contract jobs include airport expansions, road improvements, and harbor restorations.
An estimated $1 billion in additional construction funds creates about 3,900 jobs. That means the Infrastructure Bill grants over $5 billion to highways and creates almost 20,000 construction jobs.
Federally-contracted jobs often come with a range of generous employee benefits. These jobs tend to pay well and offer more job security. Construction workers can also look forward to consistent, timely compensation for their labor.
Additionally, some jobs contracted by the government lead to longer-term employment. For instance, the successful completion of a government contract often leads to consideration for future projects.
Build a Backlog of Work
A construction company’s backlog of work consists of all the projects it has won bids for but has not started. A backlog is often an indicator of a company’s financial health.
A company runs most efficiently when its backlog is balanced: enough projects are coming in to generate adequate revenue, but not so many that you can’t meet your deadlines.
During periods of economic downturn, construction companies can use their backlogs as a safety net. By building a backlog of work, the company can ensure that it stays financially buoyant when no new projects are coming in.
Long-Term Effects of Economic Downturn
The current economic downturn has spared the construction industry. The Bipartisan Infrastructure Law will create thousands of jobs in the sector, including projects in Texas.
These job opportunities are varied and plentiful, requiring skills from workers in many construction sectors, including electric vehicles, data centers, broadband internet, and federal projects.
To cushion the blow of a recession, construction companies can ensure their workers are supported by building up their backlog of work. This way, they will still be able to bring in money when jobs are scarce.
Monk JCB Construction Equipment
Monk JCB is a family-owned construction equipment manufacturer operating out of Houston, Texas. JCB offers a varied selection of construction machinery, manufacturing 300 different products at 22 plants worldwide.
Monk JCB is committed to providing superior customer service and fast delivery of high-quality construction machinery to meet your company’s needs.
Contact a sales representative through our convenient online form to find out more about our inventory.
