It is hard to deny the United States has a serious infrastructure problem. A simple trip around the country would show people the extent of the issue, especially in certain states. There are far too many roads that are falling apart, while transportation solutions such as trains have not been updated in years.
It is an issue that will need resolving in the coming years, unless the country wants to fall behind its European and East Asian counterparts in this regard. When someone travels by train in Europe or China, their experience is far superior to what they would get in the United States – and that should never be the case.
Construction Companies and Infrastructure
The construction industry has a huge role to play in the infrastructure updates that are badly needed in many parts of the United States. In fact, these companies are hoping the government will pass an infrastructure plan in the coming months. It was a promise that is yet unfulfilled by the current administration, but most are expecting there will be results sooner than later. Many are expecting that close to a trillion will be invested in the infrastructure of the nation, with most of it coming in the way of grants and other benefits to construction companies who pick up the major contracts.
Whether you are running a commercial construction company or an asphalt paving company in Moorhead, the promise of an infrastructure bill is something that will be filling you with excitement. The industry is not doing too badly. Most of the expectations are for an uptick in the coming years. But a real passing of such a bill would take those expectations through the roof, as it would mean a lot more money being poured into this industry.
Planning Ahead or a Gamble?
There are two ways to look at companies who are planning in anticipation of such an infrastructure bill. Some are saying they are merely planning for the future. If an asphalt paving contractor in Moorhead knows that a bill is coming, it makes sense for them to invest in equipment and employees for the uptick in work they will be getting. But there is another school of thought too.
What if a road and driveway pavement contractor in Moorhead spends all this money on increasing their output, but the bill never passes? Then what happens? They are left with all this equipment they invested into, but are unable to use. It is a risk that some companies deem necessary, while others are waiting for any official confirmation before they invest more in their business.
Billions or Trillions?
There is a bit of debate about the proposed infrastructure plan itself. While the proposed plan would only use around $200 billion in federal funds, there is a lot of talk about trillions of dollars in investment. Where are those trillions coming from?
The concept behind the plan is that $200 billion of federal funds would be the catalyst. There would be a great deal of local and state investment, while some private investment is also being targeted. Certain upgrades that are made would be financed through tolls and other measures. The overall plan would get to $1.5 trillion in investment using these methods.
Regardless of how we get there, construction companies and asphalt paving contractors in Moorhead are eagerly anticipating the official passing of the infrastructure plan. They want to get their hands on major contracts around the nation, as it would mean far more profit in the coming years.