The Future of Government Construction, and What You Need to Know
Since the 2020 pandemic, the state of our economy has been unpredictable. Supply chain shortages, real estate booms, and oil & gas prices are just a few of the economic shifts we’ve seen. But what are the trends for construction? Will we be seeing more spending by the government, or a decrease in construction plans? In this blog we will cover what you need to know for government infrastructure trends for the rest of 2022 and beyond.
According to the U.S. Census Bureau report earlier this month, the total spending for construction as of April has been on the rise. During the first quarter of this year, total construction spending amounted to $520.8 billion, just over 12 percent above the same period in 2021.
As for government construction, there does not appear to be a decline. In fact, in November of last year, the U.S. Congress passed an infrastructure bill that will fund more than a trillion federal dollars nationwide for construction purposes.
This bill is the largest investment in the nation’s infrastructure in decades. Its purpose is to rebuild America’s roads, bridges and rails, expand access to clean drinking water, and provide every American with access to high-speed internet. It also plans to tackle our climate crisis and advance our efforts to protect the environment. Not only is it designed to improve our nation’s ports, rail, and roads- it should hopefully drive the creation of jobs and help to grow the American economy. According the The White House, it should add an average of 1.5 million jobs per year, over the next year.
How is the Government Planning to Spend 1 Trillion Dollars?
We’ve already mentioned a few ways that the government plans to build infrastructure. But let’s break it down further. (The following information is taken from whitehouse.gov)
1. Clean water to Americans
Currently, up to 10 million American households and over 400,000 schools lack safe drinking water. This Bipartisan Infrastructure Law will invest $55 billion to expand clean drinking water across the nation. This will ultimately affect households, businesses, schools, and childcare centers across the country. For more rural towns, the government will aim to eliminate lead service pipes, including water for the Tribal Nations.
2. Access to High-Speed Internet
For most of us, high-speed internet is a given commodity. However, there are more than 30 million Americans who do not have access to broadband infrastructure. This is a particular problem in rural communities who do not have high-speed internet access. The Bipartisan Infrastructure Law will aim to invest $65 billion in broadband infrastructure, and to hopefully create more affordable internet access nationwide.
3. Improve Transportation and Increase Greenhouse Emissions
Currently, our public transit infrastructure is inadequate- with thousands of buses, rail cars, and power systems in need of replacement. Many communities across the nation lack sufficient public transportation. With the new bill, about $89.9 billion of new investment will go into modernizing transit, and expanding transit where needed.
4. Upgrade to Airports and Ports
According to the White House, the current state of our airports cannot support our modern aviation. In fact, there is not a single U.S. airport that ranks within the top 25 airports worldwide. Not only that, but our ports and waterways need repair as well. Not only will the Bipartisan Infrastructure Law reduce congestion and emissions, but it will also create a sustainable and competitive system.
5. Improve Passenger Rail Systems
Rail systems across the country lack in reliability, speed, and coverage- especially in comparison to countries like China who have excellent high-speed rail systems. The Infrastructure Law plans to invest $66 billion in rail funding to modernize our passenger rail, and create a safe, efficient, and climate-friendly alternative for freight.
6. Build a Network of Electric Vehicle (EV) Chargers
Now more than ever, American consumers are moving towards electric vehicles. The legislation will invest $7.5 billion to build out a national network of EV chargers across the country. This will not only serve more Americans as they continue to purchase electric vehicles, but it will also help to fight the climate change crisis.
7. Deliver Clean & Reliable Energy
According to the Department of Energy, power outages cost the U.S. economy up to $70 billion annually. With the new Bipartisan Infrastructure Law comes the investment in clean energy. The legislation plans to upgrade our power infrastructure, by building thousands of miles of new, resilient transmission lines. This will facilitate cleaner energy and help lower costs.
8. Fight Against Climate Change & Natural Disasters
Last year, the U.S. experienced 22 extreme weather-related natural disasters, with losses exceeding $100 billion. There are many communities that are vulnerable to flooding, hurricanes, and tornadoes. This legislation plans to make communities safer by creating a more resilient infrastructure. They will also invest over $50 billion to protect against droughts, wildfires, and heat.
9. Fight Against Pollution and Public Health Concerns
Over the years, former industrial and energy sites have been left idle and abandoned- leading to sources of blight and pollution. Proximity to a Superfund site can lead to elevated levels of lead in children’s blood, amongst other public health concerns. The new bill will invest $21 billion to clean up these Superfund and brownfield sites, and to reclaim abandoned mines and oil and gas wells.
How Modular Construction Can Benefit the New Infrastructure Bill
Needless to say, 2022 is shaping up to be a huge year for construction and infrastructure. With these billions of dollars in plans, it creates a perfect opportunity for modular construction to thrive. Much of the planned infrastructure will be done in remote areas, and there will be thousands, if not more, of crew members completing this work. During construction, these workers will potentially need housing, office swing space, cafeterias, break rooms, restrooms, and other amenities on-site. Here is why we think modular construction is the best option for the new bill:
1. Reusable Capabilities
Modular buildings continue to improve and adapt in our modern world, offering a fast, efficient, and flexible space option for government infrastructure. These portable offices can be used time and time again on different projects, and transported across the country for different uses. Once a project is completed in one state, the modules can be delivered by truck to a new project site. This could save the government and construction contractors a significant amount of money.
2. Fast & Efficient
Modular buildings can be completed in just a few weeks and are not impacted by weather delays like traditional construction methods. If the government needs immediate office space, they can choose from a variety of used buildings and standard fleet options that are ready for urgent use.
3. Green & Environmentally Friendly
It’s clear that the Infrastructure Bill has a heavy focus on climate change and protecting the environment. The great thing about modular construction is that it is less pollutive than traditional construction. This is partly because of their in-door manufacturing process, but also because the buildings can be reused time and time again. At the end of the building’s lifecycle, the different parts of the building can be recycled and used for new construction. It really is such an eco-friendly and green building practice!
The Future of Construction
BOXX Modular is a prominent U.S. based custom modular building dealer, serving the Atlantic and Gulf Coast regions. We supply modular buildings to federal, state, and local government in addition to many industries.
No matter the goverment project, BOXX Modular can assist in restoring the environment, reinvigorating the economy, and promoting economic growth. For more information, please contact our experienced modular team, or check out our Government FAQs!
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