The 920 American Road & Transportation Builders Association (ARTBA) ARTBA is forecasting moderate growth in 2014 for the US transportation infrastructure market. According to ARTBA, the overall US transportation infrastructure construction market will grow five percent from US$129 billion this year to $135.8 billion in 2014. ARTBA’s chief economist, Dr Alison Premo Black, said the market would be led by expected double-digit growth in airport runway and terminal work and a 6% increase in bridge and tunnel construction. But uncertainty about the level of federal support for state highway programs after next September, however, will continue to depress the road pavement market next year. Dr Black said that the pavement market will grow to $54.4 billion in 2014, up 2.6% nationally. This includes $42.7 billion in public and private investment in highways, roads and streets, and $11.6 billion in largely private investments in parking lots, driveways and related structures. The market, however, will be uneven nationwide, she said. According to ARTBA, paving work to be up in 19 states, down in 20, and largely flat in the remaining 11.
“Over the past 10 years, on average nationally, federal funding has provided 52% of the money invested by state transportation departments in road and bridge capital improvement projects,” Black said. She added, “The federal share ranges from 35% in New Jersey to over 70% in 11 states.”
“Absent congressional action to improve the revenue stream into the federal Highway Trust Fund before next October, federal support for state programs faces a potential $40 billion cut in fiscal year 2015,” she said.
“If the federal program can be at least stabilised, the longer term outlook for pavements could be much more positive,” Black said. “Bipartisan political support for significantly increased transportation investment has been seen in a number of Bell-weather states this year, including Pennsylvania, Virginia, Ohio, Maryland and Massachusetts. Wyoming and Vermont passed gas tax increases for expanded investment.
Bridge and tunnel construction is expected to grow from $28.5 billion in 2013 to a record-level $30.1 billion next year. ARTBA said that large projects in 10 states—California, Florida, Illinois, New Jersey, New York, Pennsylvania, Texas, Kentucky, Virginia and Washington—will account for about half of US market activity in this sector.
“Over the past 10 years, on average nationally, federal funding has provided 52% of the money invested by state transportation departments in road and bridge capital improvement projects,” Black said. She added, “The federal share ranges from 35% in New Jersey to over 70% in 11 states.”
“Absent congressional action to improve the revenue stream into the federal Highway Trust Fund before next October, federal support for state programs faces a potential $40 billion cut in fiscal year 2015,” she said.
“If the federal program can be at least stabilised, the longer term outlook for pavements could be much more positive,” Black said. “Bipartisan political support for significantly increased transportation investment has been seen in a number of Bell-weather states this year, including Pennsylvania, Virginia, Ohio, Maryland and Massachusetts. Wyoming and Vermont passed gas tax increases for expanded investment.
Bridge and tunnel construction is expected to grow from $28.5 billion in 2013 to a record-level $30.1 billion next year. ARTBA said that large projects in 10 states—California, Florida, Illinois, New Jersey, New York, Pennsylvania, Texas, Kentucky, Virginia and Washington—will account for about half of US market activity in this sector.
