A lot of things were happening as 2017 was coming to a close: a major power outage stalled one of the world’s busiest airports in Atlanta; a serious train derailment rocked Washington state; yet another wildfire raged in California; and the Trump Administration celebrated its first major legislative win in the form of a business-friendly but controversial tax reform bill. Such events capped off a tumultuous year that saw not one but three devastating hurricanes, the deadliest mass shooting in U.S. history, heightened tensions with North Korea and ongoing drama throughout the nation’s Capital.
Still, there were glimmers of hope and opportunity for the construction industry as we approached the threshold of a New Year. Of course, as is often the case, opportunity often comes with caveats and, in this case, some pretty substantial political road blocks to surmount.
The White House issued a statement last month that its advisers were putting the finishing touches on the administration’s highly anticipated, much-delayed infrastructure plan, which it expected to roll out sometime in January. At the plan’s core is $200 billion or more in direct federal spending, with the bulk of the promised $1 trillion investment made up by local governments and private funds.
Infrastructure Push Expected in January
While some see the plan as a non-starter given its lack of support even among some members of Trump’s own party, animosity between the political factions, reluctance to tackle two major spending bills in one year and pending mid-term elections, there are others who believe there is sufficient support on both sides for increased investment to rebuild the nation’s infrastructure to stimulate some form of agreement. If so, it will likely happen leading up to the mid-terms to ensure each party has a legislative victory to promote to voters. If enacted early enough, some of the funding’s influence could even be felt in this calendar year, with the bulk of its effects extending into 2019 and beyond.
Five Obstacles To Trump's Infrastructure Ambitions
Another promising development was a proposal by House Republicans for $81 billion in disaster relief for areas hit by hurricanes and wildfires. Nearly double what the White House requested, it is the largest standalone disaster aid bill proposed in recent years.
While the proposal falls short of what the affected regions requested, if passed, the measure would provide a substantial boost to recovery and reconstruction efforts in affected areas. This presents further prospects for firms specializing in disaster recovery, as well as those seeking construction work in these regions. That said, there are risks to consider when seeking such work, plus rebuilding efforts are likely to drive up labor and material costs and exacerbate an already serious worker shortage throughout the construction industry.
Whether the proposals cited will actually come to pass is anyone’s guess at this early stage. But if 2017 is any indication, the wait to see what happens will prove far from boring...
