Economic Stimulus Aids Construction Industry

According to a survey of utility contractors released by the Associated Equipment Distributors (AED) and the National Utility Contractors Association (NUCA) the recent Economic Stimulus Act has had a positive impact on the construction industry. The main benefit came in various incentives to purchase equipment. The report also feels that the economy and construction industry could be immediately strengthened by increasing the investment in water infrastructure and extending the ESA's capital investment incentives which "would have a positive impact on equipment purchasing next year and demonstrates the direct impact that water infrastructure spending has on the equipment industry." According the AED-NUCA report: The ESA's capital investment incentives have had a positive impact on utility contractor equipment purchasing, and will continue to have a positive impact on construction equipment purchasing through the end of 2008. Extending the depreciation bonus and increased Section 179 expensing levels through the end of 2009 would provide additional economic stimulus next year. Enacting legislation to increase federal investment in water infrastructure would have an immediate and positive impact on the economy and enhance the ESA's effectiveness. Water utility work is equipment-intensive and a significant portion of the average water project bid is attributable to equipment costs.

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