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.

Oct 17, 2026 - Senate Permitting Reform Proposal Could Accelerate Infrastructure Projects

• PBS News reports that a bipartisan group of senators has reached an agreement on legislation intended to accelerate federal permitting for energy and infrastructure projects. The proposal would streamline environmental reviews, limit legal challenges under the National Environmental Policy Act and National Historic Preservation Act, and expedite approvals for interstate electricity transmission lines. It would also require data centers to cover associated transmission costs. For highway, street, and bridge construction contractors, faster permitting could reduce project delays, lower administrative expenses, and accelerate construction schedules for federally regulated infrastructure projects. Supporters argue the changes would reduce regulatory uncertainty and encourage investment, while environmental advocates warn that restricting judicial review could weaken environmental protections and public oversight. The legislation faces unresolved questions about renewable energy protections, with a Senate vote expected after the November elections.
• The US Department of Transportation (DOT) has awarded new funding for critical infrastructure projects across the country, according to Construction Dive. The DOT awarded $426 million through the Nationally Significant Multimodal Freight & Highway Projects (INFRA) program to support transportation improvements in 12 states. The largest grants include $85.1 million for an 8-mile, four-lane highway in Kentucky and $85 million to expand approximately 20 miles of Interstate 4 in Florida. Other major awards include $53.5 million for highway reconstruction in Kansas, $44 million for freight corridor expansion in Mississippi, and $42.1 million for improvements near St. Louis, Missouri. The grants, authorized under the Infrastructure Investment and Jobs Act, aim to strengthen US supply chains, improve freight mobility, and expand highway capacity. Recent federal legislation extended authorization for transportation programs, including INFRA, helping sustain infrastructure investment.
• Construction cost pressures are shifting toward materials and equipment, according to a recent report by Cushman & Wakefield. Construction-related commodity prices increased 13.3% from a year earlier, more than four times the rate recorded a year before. Aluminum prices rose 40.9%, copper base scrap increased 39.3%, and nonferrous metals climbed 38.5%. Meanwhile, labor cost inflation moderated. Infrastructure construction backlog reached 10.1 months in June, increasing 7.9% from a year earlier. For highway, street, and bridge contractors, higher material and equipment costs could complicate bids, reduce margins, and increase the importance of escalation clauses. Strong infrastructure demand may support project opportunities, but contractors could face increased procurement risks and competition for materials used across construction sectors.
• 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.

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.