Infrastructure spending saw major play during the 2016 campaign, with President-elect Donald Trump proposing a $1 trillion infrastructure plan over 10 years. Although light on details so far, the plan involves trading an 82% tax break for private equity investment in revenue-generating infrastructure projects.
That emphasis on rebuilding the nation’s infrastructure shone a spotlight on the construction industry, as a lack of steady federal funding has left many contractors uncertain about when their next projects will start. With a potential $1 trillion funding infusion, companies in that sector are optimistic about the years ahead — if Trump and Congress are able to agree on a path forward.
"When Trump says at his victory speech he wants to put $1 trillion into infrastructure and mentions public-private partnerships, that gets everybody excited," Eliopoulos said. "His plan is short on details, so it’s difficult to tell exactly what he’s got in mind."
The impact of such a massive infrastructure plan goes beyond firms in the infrastructure sector, according to Meurer. "Anybody that does both might focus more on [infrastructure projects] and allow opportunities for the other projects to spread to the market," creating a boon for firms in the vertical construction business, he said.