Asphalt Product Manufacturers NAICS 324121, 324122

Aug 4, 2025 - Most States Expect Road Maintenance Budget Shortfalls

• A third of US states may not meet their funding needs for achieving their highway and bridge maintenance goals, according to a new report by The Pew Charitable Trusts and reporting by Smart Cities Dive. In part due to $1.2 trillion in funding through the 2021 Infrastructure Investment and Jobs Act, US states increased transportation’s average share of their budgets to 8% in 2024 compared to 6.8% in 2022, according to a recent report by the National Association of State Budget Officers. However, 24 states reported a combined transportation budget shortfall of $86 billion over the next 10 years.
• North American construction and engineering spending in 2025 is expected to grow by 1% after increasing an estimated 7% in 2024, according to FMI’s third-quarter 2025 North American Engineering and Construction Outlook. With growth of 32%, the data center sub-sector will lead 2025 nonresidential construction, followed by sewage and waste disposal (7% growth over 2024), amusement and recreation (+6%), water supply (+6%), educational (+4%), and public safety (+4%). Commercial construction spending is expected to decline 4% in 2025 amid a 4% drop in warehouse demand, which accounts for more than half of annual commercial spending. Lodging construction spending is forecast to fall by 3%, and stubbornly high office vacancies are expected to hold new office construction to 2% growth in 2025. Amid high mortgage interest rates and a lack of affordability, single-family construction spending is forecast to rise by 1% in 2025. A recent jump in new apartment supply and unfavorable cost conditions will reduce multifamily spending by 9% in 2025. In addition to strong spending on water and sewage projects, other segments of the infrastructure sector are projected to see spending increase in 2025, including power (+3%) and highway and street (+2%).

• The total value of nonresidential construction put in place declined by 0.1% in June 2025 compared to May, according to the US Census Bureau. Spending on nonresidential building projects was mixed in June. Growth was led by a 1.1% uptick in lodging spending, followed by educational (up 0.2%), and amusement and recreation (+0.2%). However, several segments on the nonresidential building construction subsector saw spending fall in June, including office (Down 1.2%), commercial (-0.7%), manufacturing (-0.5%), and healthcare (-0.2%). Associated Builders and Contractors (ABC) Chief Economist Anirban Basu said, “Nonresidential construction spending declined in June and has now contracted in 6 of the past 7 months.” He went on to say, “While ABC members remain optimistic about the second half of the year, according to ABC’s Construction Confidence Index, recent data pertaining to both the construction industry and the broader economy suggest weakness could persist in the months to come.”
• Demand for building design services dropped in June from the prior month, as architectural billings remain soft, according to a July report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) fell to 46.8 in June from May’s reading of 47.2. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries rose to 53.6 in June compared to 51.4 in May, and the index for the value of new design contracts increased from 45.9 to 46.0. The AIA’s Chief Economist, Kermit Baker said, “Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October. Other regions saw declining billings, though at a slower pace. While all specializations experienced softer billings, the decline slowed for commercial/industrial and institutional firms. Multifamily firms faced the weakest conditions, with further declines.”