Highway, Street & Bridge Construction NAICS 237310

Apr 10, 2025 - Highway, Street Projects Lead Construction Spending

• The total value of construction put in place increased 0.7% in February compared to January, according to the US Census Bureau. Spending on nonresidential projects rose 0.3% to a record $1.26 trillion. Highway and street construction projects accounted for 40% of February’s nonresidential gains as public projects drove growth, according to Associated Builders and Contractors (ABC) analysis of US Census Bureau data. While public nonresidential spending was up 6.1% in February over the same month in 2024, private nonresidential spending has not kept pace, growing just 2.5% over the same period. In a press release, ABC’s Chief Economist Anirban Basu said, “The mix of high interest rates, tight lending standards, and unprecedented uncertainty regarding trade policy will continue to weigh on private sector construction in the coming months.”
• The state of US infrastructure received a grade of C, according to a recent report card issued by the American Society of Civil Engineers (ASCE) that rates 18 infrastructure categories. The C rating was the highest grade since the ASCE began releasing the reports in 1998. The ASCE cited increased infrastructure spending through the Infrastructure Investment and Jobs Act (IIJA) as the primary driver for the grade improvement. Regarding highway, street, and bridge construction, bridges received a C, and roads received a D+. While the IIJA provided about $40 billion for bridges and more than $590 billion for roads, rehabilitating the nation’s bridges will require an additional $191 billion. US roadways will face a $684 billion funding gap over the next decade. The authors of the ASCE reports urged leaders in Washington DC, ““to continue sustained investment in infrastructure and build on progress made to improve infrastructure after decades of deferred funding and under investment.”

• On March 12, the Trump administration’s 25% tariff on all US imports of steel and aluminum went into effect, a move that some in the construction sector worry could increase costs and reduce margins. The administration suggests that the tariffs aim to level the playing field amid what it alleges is unfair dumping of low-cost steel imports into the US market. On April 9, the Trump administration paused its reciprocal tariff agenda for 90 days for most countries but left in place a baseline 10% import duty on all countries except China, which faces duties of 125%. Canada and Mexico are not subject to the new 10% baseline tariffs, and goods trading under the US-Mexico-Canada Agreement would remain duty-free.
• Raids by Immigration and Customs Enforcement (ICE) are prompting some foreign-born workers to stay home from their workplaces, disrupting key industries that rely on migrant workforces, including construction, according to The Wall Street Journal. The Trump administration has said that while it is focusing on undocumented people with criminal backgrounds, anyone in the country illegally faces increased risk. According to an analysis of US Census Bureau data by the American Immigration Council, undocumented immigrants make up about 14% of the US construction sector’s workforce. The Associated General Contractors of America said it had received anecdotal reports of rising absenteeism from member firms in several locations, including Florida, Georgia, Oklahoma, and Texas. Labor disruptions reduce construction firms’ ability to deliver projects on time.