Transport bill sparks construction growth

The imminent passage of a new federal surface transportation bill is the driving force behind an expected 4% growth in the US transportation construction market next year, according to the American Road & Transportation Builders Association (ARTBA).

ARTBA chief economist Dr Alison Premo Black has said that the market will hit $208.3bn next year, up from $200.5bn in 2015. 

The bill will provide much-needed stability for the highway, bridge and transit markets after a decade of short-term extensions, Premo said.

In addition, the modest increase in federal highway and bridge investment in 2016 will help the program keep pace with changes in inflation, materials and project costs.

Federal funding currently accounts for an average of 52% of state department of transportation capital outlays for highway and bridge improvements.

The government announced agreement on the transportation bill yesterday, which also has a series of provisions to be boost the P3 market in the US.

Market reaction to the new bill will be discussed at the P3 Hub East event, held in Washington, DC on December 8 and 9. For more information, click here.