Highway, Street & Bridge Construction

The 8,400 construction companies in the US build transportation-related infrastructure; including highways, roads, streets, airport runways, and bridges. Companies may also build driveways and parking areas. Industry revenue consists of new construction (59% of industry sales), additions, alterations, or reconstruction (22%), and maintenance and repair (19%).

Variability In Costs

With low margins, variability in the cost of materials and labor can be a challenge, particularly for fixed unit price and lump sum contracts.

Dependence On Government Spending

Most industry revenue comes from publicly funded programs, mainly state and local government projects.

Sep 17, 2026 - Long-Term Highway Bill Remains Pending

• The Bipartisan Policy Center reports that the proposed BUILD America 250 Act would authorize $580 billion for roads, bridges, transit, rail, and other surface transportation programs over five years. The legislation cleared the House Transportation and Infrastructure Committee but has not yet been enacted. A long-term authorization would give highway and bridge contractors greater visibility into future project pipelines and allow state transportation departments to plan multiyear work with more certainty. Congress has approved a temporary extension of current surface transportation programs through December 11, but contractors continue to face uncertainty over funding beyond that date. The proposal includes about $474 billion in guaranteed surface transportation funding and would increase highway funding relative to the IIJA.
• The US Department of Transportation has launched America's Great Corridors of Commerce, a voluntary initiative that would allow states and railroads to lease transportation rights-of-way for transmission lines, fiber-optic cables, water pipelines, and other utilities. The initiative could create new construction opportunities along existing highway corridors while generating lease revenue to fund road, bridge, tunnel, and rail repairs. DOT plans to select up to five initial priority corridors and provide technical assistance, streamlined permitting, and public-private partnership models. Using existing rights-of-way could also reduce land acquisition requirements and shorten permitting timelines for infrastructure projects.
• The US Census Bureau says highway construction spending totaled a seasonally adjusted annual rate of $150.3 billion in July, down 0.2% from June but up 4.5% compared to July 2025. Public construction spending overall declined 0.2% for the month to a $543.4 billion annual rate. Highway spending remains one of the strongest areas of the construction market, supporting demand for paving, bridge, grading, and other heavy civil contractors even as spending weakens in several private construction categories. The July decline was small relative to the size of the market and followed elevated levels of infrastructure investment supported by federal, state, and local transportation programs.
• Nearly nine in 10 construction firms with hourly craft openings say those positions are as hard or harder to fill than a year ago, according to an Associated General Contractors of America and National Center for Construction Education & Research survey. Among contractors with craft openings, 50% said filling those jobs has become more difficult. Labor shortages can constrain highway and bridge contractors' ability to staff projects, meet schedules, and pursue additional work even when public infrastructure demand is strong. Nearly three-quarters of surveyed firms expect to add employees during the next 12 months, while half said available applicants lack the required skills, certifications, or licenses. Workforce shortages remain the leading cause of construction project delays, according to AGC.

Industry size & Structure

A typical highway, street, or bridge construction company operates out of a single location, employs about 45 workers, and generates about $18.5 million annually.

• The highway, street, and bridge construction industry consists of 8,400 companies that employ about 377,900 workers and generate $156.1 billion annually.
• Government contracts account for about 72% of industry revenue, and the majority of government contracts are issued by state and local governments.
• Large companies include Kiewit Corporation, Granite Construction, and US divisions of Skanska.
• Most small to medium-sized companies operate within a limited geographical market.