The country’s transportation construction market should exceed $300 billion next year, up by nearly $14 billion over 2019.
According to a new study released by the Washington-based American Road & Transportation Builders Association, project growth in 2020 will be fueled by increased investment at the federal, state, and local government level.
The report, U.S. Transportation Construction Market Forecast 2020, specifically forecasts a 6 percent increase in state and local government investment next year, for a total dollar value of $77.5 billion.
Those projects will additionally be spurred by voter-approved November initiatives in 19 states designed to fund a variety of infrastructure projects.
“That money is getting into the pipeline and certainly helping the highway work,” Alison Premo, the ARTBA’s chief economist, remarked in a webinar discussing the new report.
Premo added: “There’s a growing trend of the state and local governments using the ballot to approve the local funding measures.”
Construction work on bridges, parking lots, and private highways is also expected to substantially grow from just under $70 billion this year to nearly $21 billion next year.
Subway and light rail investment will additionally see a marked increase in 2020, jumping from the current $10.3 billion to around $11 billion—a record level.
Regionally, the report sees the greatest transportation construction growth in eleven states, two of which, Arizona and Texas, are in the West.
Due to the aging nature of their roads and bridges, the states of New York, Michigan, Illinois, and Wisconsin are also expected to make up some of the largest transportation construction markets in the country next year.
In a release issued by the ARTBA, Premo also noted that the one variable in next year’s picture is whether Congress will renew the big Fixing America’s Surface Transportation Act legislation.
“Any project delays – because states are concerned about whether the next federal surface transportation bill is completed in a timely matter – could temper 2020 market growth,” said the release.
By Garry Boulard
