This year, President-elect Donald Trump will inherit a construction industry that is in much better shape than when he left the White House in 2021.
President Joe Biden, who defeated Trump in his first reelection bid in 2020, passed the bipartisan Infrastructure Investment and Jobs Act (IIJA) during his first year in office. This fall, the IIJA celebrated its third anniversary, and that influx of money— a $1.2 trillion infrastructure package that will deliver $550 billion in federal investments over five years — is the main reason why the state of the industry is great.
The IIJA has reshaped the country’s infrastructure. It also has changed how many Americans view and talk about infrastructure. The bipartisan law is an investment that has spread enthusiasm and excitement throughout the road and bridge construction industry, and it also has shown how much more work needs to be done to ensure that the country’s roads and bridges meet our 21st century needs.
However, the IIJA’s Build America Buy America Act has confused many stakeholders, and the pace at which the money has been distributed has frustrated countless within the industry.
As 2025 begins, the state of the industry might be great, but looking forward to the IIJA’s five-year expiration date, how long will the good times last?
With a second Trump term on the horizon, many expect his administration to manage the bipartisan law better than Biden. But will the IIJA be extended, revised and then extended or will it be allowed to expire?
If the law expires, will the Trump administration attempt bipartisan negotiations to pass a new bill that helps improve America’s roads and bridges? Can Congress overcome its polarization to pass such a bill? Would this mean a return of “Infrastructure Week,” which became a running joke during Trump’s first term?
This past summer, Roads & Bridges conducted its annual multi-part state of the industry survey. Respondents represented highway/heavy construction (56%), both building and highway construction (22.7%), general building construction (9%), material production (9%) and technology development/application (3%).
The survey’s final question focused on the future: Does the IIJA need to be extended or does the country need a second law that invests a large amount of money in infrastructure, since the IIJA has barely dented the country’s crumbling bridge issue?
Most respondents answered yes, but they were split on the price tag, with 50% answering, “Yes, but where will the money come from?” and 27% checking, “Yes, and the money is there if it is spread out wisely over time.”
The remaining 23% answered, “No, the IIJA is more than enough; it just needs managed better.”
Most respondents (55%) are disappointed or very upset over how the bipartisan law has been implemented under the Biden administration.
So, what is the biggest problem with the IIJA? Our survey offered three options: The Build America Buy America Act, money distribution is too slow or all of the above. Roughly 52% said it was all of the above, and the question received numerous comments.
“Funding is often not simply programmatic but tied to administratively confusing grant programs with far too much administrative cost/complexity,” one respondent wrote.
Another person added: “Local government does not adequately take advantage of all available funds.”
Other comments included, “Small projects are not supported” and “Not enough diversity in projects.”
Meanwhile, understanding of the IIJA is similar to what it was last year, with 37.5% saying they have an average grasp on its rules and regulations, while 33% answered weak or very weak.
Just 6% of respondents said they have a very good understanding of the law, and 23% described their comprehension of it as good.
The future of the IIJA — how it’s managed and what to do next — will loom large over the industry in 2025. However, while the Trump administration determines the path forward, the industry is thriving.
An impressive 84% of respondents said that 2024 was an excellent, very good or good year for their company. A slightly higher percentage (86%) of respondents expect 2025 to be excellent, very good or good, as well.
Similarly, when asked about the overall health of their businesses, most respondents answered good (44%) or very good (31%). Another 20% described the state of their firms as average.
In that same vein, most respondents (44%) saw their firm’s revenue increase in 2024, and the same percentage expect their revenue to continue to climb in 2025.
Not surprisingly, when asked about the economic conditions in their state, specifically when it comes to road and bridge projects, 73% of respondents described it as good or fair. For that question, 12% said it was poor. And of the respondents who said fair or poor, 50% said they expect to see the industry improve in 2025 and 2026.
As positive as this news sounds, the survey produced some sobering results regarding costs and labor.
Among our respondents, 74% expect material prices to increase in 2025. Most think that the costs of cement (77%), steel (74%) and asphalt (73%) will go up.
The outlook regarding the workforce doesn’t sound much better. Roughly 61% of respondents rated the availability of qualified workers for job openings as weak or very weak.
However, this is an improvement from last year, when 73% of respondents answered weak or very weak.
When asked what could improve the labor shortage the most, 50% of our respondents said upgrading high school and vo-tech school programs, while 38% said apprenticeship programs.
This question had a write-in option, and respondents suggested “Stricter drug testing,” “Higher salaries” and two urged for a reduction in unemployment benefits, one specifically for those under the age of 50.
Unfortunately, there is no quick fix to the industry’s labor problems. The Biden administration had an opportunity to improve the issue, but the IIJA has failed to help the industry rebuild its pipeline of qualified workers.
The IIJA invests in community, state and federal projects, but it fails to set aside money for training workers. Of the 414 funding grants within the bipartisan infrastructure law, just 57 are eligible to be used to fund work-force related efforts, according to the National Governors’ Association.
Perhaps the Trump administration could address these issues while also revising and extending the IIJA?
The biggest reason why America needs the IIJA to be extended: the state of our bridges. Approximately, 221,800 bridges need repaired or replaced, according to the American Road and Transportation Association (ARTBA).
A consistent thorn in the industry’s side: When one bridge gets fixed, a new bridge gets added to the list of ones in “poor” condition. Roughly 54% of respondents said the number of “poor” bridges in their state remained the same this year.
America’s roads seem to be in better shape. Roughly 81% of respondents said that urban roads in their area are either good or fair, and 52% said those roads are improving.
Rural roads are in good shape, as well, with 77.5% marking that they are in good or fair condition. However, 52% said they declined in 2024.
The IIJA was a generational investment into America’s infrastructure. It is the reason why the road and bridge construction industry thrived in 2024 and should continue to perform well in 2025.
But the IIJA has not been managed well, according to many within the industry, and it did not help attract new, qualified workers to jobsites, which is desperately needed.
After three years of the Bipartisan Infrastructure Law, the industry wants the country’s leaders to give them the tools to finish the job that this investment promised.
Will the incoming Trump administration deliver? Time will tell. R&B
