Is your aggregate business ready for an influx of government contracts?
Hundreds or even thousands of bills are introduced to Congress every year. And many, many bills don’t make it past the House of Representatives.
For most Americans, keeping track of all these pieces of the proposed legislation is virtually impossible. But if you’re an aggregate business owner, there’s some big political news that you should know about.
In late 2021, the United States government announced the Infrastructure Investment and Jobs Act. This new bill, supported on both sides of the aisle, comes with billions of dollars of budget. And a lot of that money could go straight into the aggregate industry.
Today, we’re outlining the Infrastructure Investment and Jobs Act, including project and budget details. We’ll also talk about what this means for your aggregate business—and how to prepare for the windfall.
What is the Infrastructure Investment and Jobs Act?
The Infrastructure Investment and Jobs Act is a bipartisan bill enacted on November 15, 2021. The Infrastructure Investment and Jobs Act will pour $550 million into building new infrastructure across the United States. Funds have been allocated for roads, bridges, railways, public transportation, airports, and much more.
The Infrastructure Investment and Jobs Act falls under the umbrella of the Build Back Better plan.
What does this mean for everyday Americans?
There are three essential things to know about how the Infrastructure Investment and Jobs Act will affect individuals:
- Better infrastructure. For most Americans, the act’s impacts will be visible all around. There will be better roads, public transportation options, charging infrastructure for electric vehicles, and more. In addition, additional funding has been set aside for community connection.
- Taxes. Due to the Infrastructure Investment and Jobs Act, there will be no tax increases for everyday Americans.
- Jobs. One goal of both the Infrastructure Investment and Jobs Act and the Build Back Better Act was to create good jobs. Together, the two acts are expected to add 1.5 million jobs to the American economy every year—for the next ten years.
What does this mean for the construction industry?
In short: Lots and lots of business. The timeline for the Infrastructure Investment and Jobs Act is just five years, so there’s a lot of work to be done. The Act’s deliverables include:
- Roads, bridges, and major projects.
- Passenger and freight rail.
- Public transportation.
- Ports and waterways.
- Airports.
- Community connection projects.
The government will rely heavily on private contractors to complete the many projects outlined in the legislation. Many of these projects will be delegated to state governments, who turn to local businesses to complete the work. Construction companies have a great shot at turning some of that $550 billion into revenue.
Aggregate and the Infrastructure Investment and Jobs Act
$110 billion of that funding is earmarked for roads, bridges, and related projects. A further $66 billion has been allocated for passenger and freight rail. These projects require massive quantities of aggregate.
The Association of Equipment Manufacturers (AEM) has published fascinating statistics on aggregate use in construction:
- Aggregates make up 90% of most asphalt pavement mixtures.
- Aggregates make up 80% of concrete mixes.
- Constructing just one lane mile of an interstate highway requires 38,000 tons of aggregate.
In simple terms, it’s safe to say that a massive surge in aggregate demand is right around the corner.
How will this affect your aggregate business?
Aggregate companies should be ready to take advantage of all the new business that might be headed their way. Contract bidding can be a fast process, so it’s important to be ready to jump on opportunities as they arise. Unfortunately, an outdated paper system likely won’t give you the flexibility and speed you need. Plus, it can send the wrong message and make you seem behind the times.
A software system, on the other hand, can set you up for success. Software puts comprehensive data at your fingertips and makes it easier to find the information you and your customers need.
You can use software to manage large-scale projects and orders with less stress and less room for error. With software, you can act, communicate, and make decisions quickly, giving you a leg up on the competition. Plus, a smooth-running software system can inspire confidence in potential customers. It sends the message that you know what you’re doing and has the right technology to meet customers’ modern needs.
With all that money poised to enter the industry, your aggregate business needs to be ready to act. Scaleit can give you the advantage you need to claim some of that revenue for yourself.