Infrastructure Spending Raises Construction Contractor Demand

 

This Thomas Index Report is sponsored by Base Construction, a leading industrial contractor since 1998.

Hello again. This week we’re going to take a look at sourcing activity for Heavy Civil Construction Contractors by users of the Thomasnet.com platform. Our data shows that over the past 12 weeks, sourcing activity for this category is up 8 percent over its historical average.

Our firmographic buyer data shows that the top sector driving this sourcing trend on our platform is Government & Military.

Earlier this month, Congress passed a fiscal year 2019 spending bill that earmarked over $10 billion for military construction projects by the US Army Corps of Engineers and other agencies. The bill includes funding for projects ranging from locks, dams, and levees, to hospitals, medical clinics, and military family housing. This bill follows an August announcement by the US Department of Transportation that the F.A.A will be awarding over $600 million in airport infrastructure grants. This award is the latest funding installment within a $3 billion Airport Improvement Program. This capital will be used for infrastructure projects at over 200 airports, for things such as terminals, runways, taxiways, and aprons. It will be interesting to see what happens after November’s mid-term elections – as proposals for infrastructure spending could lead to huge civil construction contracts. The $1.5 trillion infrastructure plan introduced by the White House back in February stalled in Congress over funding, and no action is expected on the issue by lawmakers until the new Congress is sworn in.

In addition to Heavy Civil Construction Contractors, our data also shows that sourcing activity is up 17 percent or more, month-over-month, in the related categories of Civil Engineering Services, Road & Highway Construction Contractors, and Construction Equipment.

Moving on from Construction, here’s a look at the top ten industrial product and service categories being sourced on the Thomasnet.com platform over the past four weeks.

  1. Steel
  2. Printed Circuit Boards (PCBs)
  3. CNC Machining
  4. Injection Molded Plastics
  5. Aluminum
  6. Food Products
  7. Tube Fabrication & Bending Services
  8. Plastic Bottles
  9. Contract Manufacturing
  10. Corrugated Boxes

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Thanks for watching, and I’ll see you again next week.

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