Highway, Street & Bridge Construction NAICS 237310

Jan 10, 2026 - ASCE Rates the State of US Roads, Bridges

• In its 2025 Infrastructure Report Card, the American Society of Civil Engineers (ASCE) gave US bridges a grade of C, while roads received a D rating. It's estimated that between 2024 and 2033, roads will have a funding gap of $684 billion, and bridges will have a shortfall of $373 billion. According to a TRIP analysis of Federal Highway Administration data, in 2023, 45% of US roadways were in good condition, while 39% were in poor condition, and 16% were in fair condition. Just under half of US bridges are in fair condition, 44% are in good condition, and about 7% are in poor condition. While the ASCE credits the Infrastructure Investment and Jobs Act with improving road and bridge conditions over the last few years, ongoing funding and investment levels after 2026 remain uncertain.
• During a December webinar, Associated Builders and Contractors' chief economist, Anirban Basu, said the construction sector would experience modest growth in 2026, according to Engineering News-Record. Still, inflation and high interest rates will continue to pose significant headwinds. In a survey of webinar participants, respondents named insufficient demand as their leading concern. Mr. Basu noted it was the first time "in recent memory" when a lack of skilled workers was not among contractors' top challenges. Materials prices remain elevated, posing margin pressures for construction firms. Between February 2020 and September 2025, construction input prices increased by more than 43%, according to the U.S. Bureau of Labor Statistics. Over the same period, several inputs for highway, street, and bridge contractors have seen significant inflation, including fabricated structural metal products (up 63.1%), steel mill products (+62.5%), prepared asphalt & tar roofing/siding products (+47.2%), and concrete products (+42%).

• The 43-day federal shutdown, the longest in U.S. history, ended November 12, but construction industry disruptions persist, according to Engineering News-Record. Infrastructure agencies, including the Department of Transportation, the Environmental Protection Agency, and the Army Corps of Engineers, remain under a continuing resolution through January 30, 2026, which limits spending, staffing, and new program starts. Contractors are facing mounting delays in grant agreements, environmental reviews, and permit approvals, particularly for transportation, water, and civil works projects. Inflation and seasonal timing compound risks, as procurement delays may drive up material costs. Public owners must still meet Infrastructure Investment and Jobs Act deadlines despite slowed federal processing. The reopening offers a path forward, but recovery will be gradual, requiring strategic planning across the construction sector to manage uncertainty and maintain momentum.
• Construction firms that work on civil infrastructure projects are holding steady as they manage uncertainties, including waning backlog growth and stagnant margins, according to FMI’s fourth-quarter Civil Infrastructure Construction Index (CICI) survey. The CICI reading for the third quarter was 50.6 compared to 50.8 in Q3 2025 – on a 100-point scale. Any CICI reading above 50 indicates that more civil infrastructure contractors see conditions as good than poor. About half of civil infrastructure contractors reported that their backlogs in Q4 met or exceeded their targets. However, most noted that public projects are making up a growing share of overall backlogs, as private-sector projects face greater uncertainty. Contractors expect backlog growth to slow over the next few quarters as more firms vie for a narrower set of public projects. Contractor margins remained steady but flat in Q4 2025 as bid competition and rising cost pressures eroded pricing power.