The construction industry is still feeling the negative effects of the coronavirus on overall business and investment.
While the construction and related industries were largely deemed ‘essential’ from the start of the COVID-19 pandemic, declining revenues from state and local governments are having an impact on construction projects.
At least 43 states, local governments and transportation authorities have publicly projected declining revenues, and 15 states currently have announced project delays or cancellations valued at nearly $5 billion, according to the American Road & Transportation Builders Association (ARTBA). Those 15 states are Florida, Georgia, Hawaii, Kentucky, Mississippi, Missouri, Nevada, New Mexico, North Carolina, Ohio, Pennsylvania, Vermont, Washington, West Virginia and Wyoming.
Furthermore, 19 local government and authorities have announced project delays or cancellations totaling $4.54 billion, and 10 states or local areas have vetoed, postponed or canceled ballot measures or legislative initiatives related to transportation funding.
According to the Federal Highway Administration, each $1 billion in transportation construction funding supports an average of 13,000 jobs throughout all sectors of the economy.
The National Demolition Association (NDA) also expressed concerns about a lack of state and local revenues to fund critical infrastructure-related projects.
“Our main concern is with tax revenues both at the state and local [and] expecting that pool to dry up and, in turn, local projects drying up,” says Jeff Lambert, executive director at NDA. “We think that if an infrastructure bill does pass, it would offset that work that many of our members had slated on their backlogs for the end of the year that now look like they might be drying up.”
Senate Republicans recently introduced the HEALS Act, their latest stimulus bill that includes liability, workforce and financial and unemployment reforms.