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.

Aug 17, 2026 - Senate Passes Stopgap Highway Funding

• Engineering News-Record reports that the Senate voted 90-6 on August 8 to pass a stopgap funding package extending federal highway and transit programs through Dec. 11 while allowing some Infrastructure Investment and Jobs Act (IIJA) advance appropriations for transit and passenger rail to expire. The measure would generally maintain fiscal 2026 agency funding levels, extend surface transportation authorities, preserve certain highway and transit funds, and provide limited exceptions for specific federal construction projects. Transportation groups warned that losing the advance appropriations could cut public transit investment by 20% and passenger rail investment by 83%, potentially delaying projects and creating uncertainty. The Senate bill differs from the House version, so lawmakers must reconcile the measures before sending final legislation to President Donald Trump.
• U.S. highway and street construction spending is expected to increase about 2% in 2026 to $149 billion after declining about 1% in 2025, according to FMI’s third-quarter 2026 North American Engineering and Construction Outlook. States have committed roughly $270 billion in IIJA highway and bridge funding across more than 119,000 projects, supporting projects into 2027. The House Transportation and Infrastructure Committee has advanced a five-year, $580 billion surface transportation bill that would increase guaranteed highway funding by about 7% from IIJA levels and direct roughly $50 billion to bridges. However, the Senate has yet to produce its own bill to address a Highway Trust Fund shortfall. Rising construction costs and volatile diesel and asphalt prices continue to pressure industry margins.
• According to Construction Dive, the US Department of Transportation awarded $1.73 billion in 2026 BUILD grants for 127 transportation projects, with $1.3 billion, or 77%, directed to roads and bridges. The funding, provided through the Infrastructure Investment and Jobs Act, also supports transit, ports, freight and passenger rail, truck parking, and aviation infrastructure. Demand far exceeded available funding, with nearly 1,200 applications requesting more than $14.5 billion. The emphasis on road and bridge improvements, including pavement upgrades and safety enhancements, could create additional bidding opportunities and strengthen project backlogs for the highway, street, and bridge construction industry.
• In May, John Deere demonstrated a connected roadbuilding system that links milling equipment, pavers, rollers, and the John Deere Operations Center to share real-time production and quality data throughout the pavement rehabilitation process, according to Engineering News-Record. The system is designed to improve quality control, automate project documentation, enhance operator efficiency, and help contractors address labor shortages through digital tools. Deere also showed digital coring, which could reduce destructive pavement testing if transportation agencies approve its use, and mobile crushers that recycle reclaimed asphalt on the jobsite. For the highway, street, and bridge construction industry, wider adoption of these technologies could improve pavement quality, reduce project costs, increase worker safety, and streamline compliance with owner documentation requirements.

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.