ARTBA predicts ‘modest growth’ from U.S. transportation construction infrastructure market
(Look for a more detailed report, including a slideshow, from the Aggregates Manager staff both on the website and in the digital edition of Aggregates Manager.)
The U.S. transportation construction infrastructure market is expected to show modest growth in 2013, increasing 3 percent from $126.5 billion to $130.3 billion, according to the American Road and Transportation Builders Association’s (ARTBA) annual forecast. The association’s chief economist, Dr. Alison Premo Black, released her findings during a November 30 webinar for Wall Street analysts and construction industry executives.
Growth is expected in highway and street pavements, private work for driveways and parking lots, airport terminal and runway work, railroads, and port and waterway construction. ARTBA predicts the bridge market, which has shown substantial growth over the last 10 years, to remain flat next year.
Federal surface transportation program, combined with state and local government transportation investments, are the most significant drivers of the national transportation infrastructure construction market.
According to Black, the pavements market will be sluggish in 2013, growing 2.8 percent to $58.4 billion. This includes $47.7 billion in public and private investment in highways, roads and streets, and $10.7 billion in largely private investments in parking lots, driveways and related structures.
With no new real federal money in the 2012 MAP-21 surface transportation law, still recovering state and local tax collections and modest new housing starts, the pavements market will be uneven across the nation. Pavement work is anticipated to be down in 25 states. Growth above a five percent range is expected in 19 states.
However, there are at least two developments related to MAP-21 that could lead to additional market activity in the short term and strengthen the market in 2013 and 2014, Black says.
First, the law’s restructuring of the federal highway program offers state transportation departments more flexibility in their use of federal funds. This could lead to slightly increased investment in highway, bridge and pavement work above the forecast in some states. Second, MAP-21’s expanded federal Transportation Infrastructure Finance & Innovation Act (TIFIA) loan program should also increase construction activity in some states.
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