American Road & Transportation Builders Association issued the following announcement on Dec. 5.
The U.S. transportation infrastructure market is expected to grow 4.2 percent in 2019, according to the annual economic forecast released Dec. 5 by the American Road & Transportation Builders Association (ARTBA).
Increased transportation investment by federal, state and local governments will help drive the growth across all modes, ARTBA Chief Economist Dr. Alison Premo Black says.
Total domestic transportation construction and related-market activity is projected to reach $278.1 billion, up from 2018’s $266.9 billion, after adjusting for project costs and inflation.
The transportation construction market also grew by 4.2 percent in 2018 compared to 2017, driven largely by gains in airport terminal and runway construction, which increased by $5.8 billion, or 33 percent. Spending on public highway and street construction rose by $2.7 billion in 2018.
Dr. Black shared the findings in her multimodal forecast during a webinar for analysts, investors, transportation construction market executives, and public officials.
One wild card in the forecast, Black says, is the outlook for the scheduled 2020 reauthorization of the FAST Act surface transportation law and the ability of Congress to find additional revenues to support the Highway Trust Fund. “If states start delaying transportation improvement projects in response to uncertainty over the future of the federal program, it will temper 2019 market growth,” Black said.
Although the overall U.S. transportation infrastructure market will see growth next year, the situation will likely vary significantly by state and region, according to Black.
Highway construction market activity is expected to increase in about half of the states and Washington, D.C. The market should be steady in another five states, with activity expected to slow down in the remaining 20 states.
Other market risks include uncertainty over material prices, increased labor costs and potential labor shortages in some regional markets.
Among the other findings in Black’s forecast:
Public & Private Highway, Street & Related Construction
The real value of public highway, street and related work by state DOTs and local governments—the largest market sector—is expected to increase by 5 percent to $66.5 billion after growing 4.5 percent in 2018.
Work on private highways, bridges, parking lots and driveways will increase from $65.9 billion in 2018 to $69.1 billion in 2019 and will continue to grow over the next five years as market activity increases in those sectors.
Bridges & Tunnels
The pace of bridge and tunnel work slowed in 2018, but is expected to grow 1.5 percent next year to $31.7 billion, with the pace increasing to over 2 percent annually in 2020 and beyond.
Light Rail, Subways, & Railroads
Public transit and rail construction is expected to increase from $19 billion in 2018 to $20 billion in 2019, a 5.7 percent increase.
Subway and light rail investment is expected to reach a new record level, increasing from $7.7 billion in 2018 to $8.2 billion in 2019.
Airport Runways & Terminals
After growing 38 percent in 2018, airport terminal and related work, including structures like parking garages, hangars, air freight terminals and traffic towers, is expected to increase from $18.4 billion in 2018 to $19.2 billion, an increase of 4.5 percent.
Runway work, which was up 18 percent in 2018, is forecasted to increase from $4.9 billion in 2018 to $5.1 billion in 2019.
Ports & Waterways
The value of port and waterway investment is expected to grow 3 percent to $2.6 billion in 2019. Construction activity in 2018 was $2.5 billion, up from $2.2 billion in 2017.
The full forecast can be purchased at www.artbastore.org.
ARTBA’s forecast is based on a series of proprietary econometric models for each mode and analysis of federal, state and local data and market intelligence.
Established in 1902, the Washington, D.C.-based ARTBA is the “consensus voice” of the U.S. transportation design and construction industry.
Original source can be found here.
Source: American Road & Transportation Builders Association