US construction sector to grow by 3.3% a year

By Leila Steed24 August 2021

Infrastructure in the US, including numerous bridges, recquires increased funding

The US construction industry is predicted to grow by an average of 3.3% a year between 2021 and 2025, according to GlobalData.

The revised forecast, which is 1.1% higher than the research company’s previous figure, follows the US Senate’s passing of the new US$550 billion infrastructure bill announced by President Joe Biden several weeks ago.

While the new bill must still be approved by the US House of Representatives before it can be made law, GlobalData said its enactment would further add to the infrastructure programs passed earlier this year, and would see the US spend around US$1.4 trillion (€1.2 trillion) on infrastructure over the next eight years.

Dariana Tani, economist at GlobalData, said, “While the new bill falls short of President Joe Biden’s original US$2.3 trillion proposal, it is the largest injection of federal funding into infrastructure projects in over a decade.”

She added, “It is expected not only to bring a boom to the construction industry, but also to the wider economy by creating millions of jobs and strengthening the sales and earnings for many US corporate business sectors over the coming years.”

Joe Biden President Biden’s infrastructure bill, if passed, would lead to stronger growth for the construction industry

Described by US President Joe Biden as “the most significant long-term investment in our infrastructure and competitiveness in nearly a century,” the bill includes budgets of US$110 billion for roads, bridges and major infrastructure projects and US$73 billion for upgrading America’s ageing power infrastructure.

While a further US$65 billion has been allocated to broadband infrastructure for high-speed internet and US$66 billion to railway maintenance and modernisation, the infrastructure bill also includes US$100 million for the deployment of digital construction technologies.

However despite also now forecasting an average 5.3% of growth for the US infrastructure construction sector between 2021-2025, GlobalData warned that there were still significant challenges ahead that would affect the level of growth. These include the Covid-19 pandemic, rising materials costs and a lack of skilled labour. 

MAGAZINE
NEWSLETTER
Delivered directly to your inbox, World Construction Week Newsletter features the pick of the breaking news stories, product launches, show reports and more from KHL's world-class editorial team.
Longer Reads
Is electric equipment the answer?
Construction equipment is rapidly evolving to become greener and cleaner
Why ESG-linked loans are impacting construction finances
A way to help fight the climate crisis or a pile of greenwash? How ESG-linked loans are entering the corporate mainstream 
Meeting productivity demands: new compaction equipment
How new roadbuilding and compaction equipment is meeting productivity demands, while keeping emissions low
CONNECT WITH THE TEAM
Andy Brown Editor, International Construction Tel: +44 (0) 1892 786 224 E-mail: andy.brown@khl.com
Simon Kelly Sales Manager Tel: +44 (0) 1892 786 223 E-mail: simon.kelly@khl.com
CONNECT WITH SOCIAL MEDIA