After a challenging year for the construction industry, the close of 2020 brought encouraging signals for contractors who have been waiting for meaningful infrastructure investment. Hope and Recovery in the Equipment Rental Industry reflected the cautious optimism spreading across the sector as election results and policy signals pointed toward renewed federal commitment to transportation projects. With a new administration preparing to take office and clear voter mandates for infrastructure action, contractors have reason to expect 2021 will be a pivotal year for road building, bridge repair, and surface transportation funding.
The 2020 Election Results: A Clear Mandate for Infrastructure Investment
The November 2020 elections delivered a resounding message about American priorities for transportation infrastructure. Voters across the country went to the polls in record numbers, and among the clearest signals they sent was a demand for meaningful investment in the nation’s roads, bridges, and transit systems. This voter-driven momentum provides the political foundation that contractors need to plan for sustained growth rather than short-term spikes.
Record-Breaking Support for Transportation Ballot Measures
In a historic display of public support, voters in 18 states approved a record-high 94 percent of transportation-related ballot measures. States including Arkansas, Michigan, Ohio, Texas, and Washington led the way, approving funding mechanisms for everything from highway expansion to public transit improvements. This bipartisan show of support at the ballot box demonstrated that infrastructure investment resonates across political lines and geographic regions. The scale of approval suggests that voters recognize the connection between well-maintained roads and bridges and their daily quality of life, making infrastructure one of the few issues capable of generating broad consensus.
For construction contractors, the practical implication of these ballot measure victories is a pipeline of funded state and local projects that will move forward regardless of what happens at the federal level. Even if the new surface transportation bill takes time to negotiate, state-level funding approved by voters provides an immediate base of work. This dual layer of funding at both state and federal levels creates a robust environment for construction activity.
Transportation as a Bipartisan Bridge
Transportation has historically been one of the few policy areas where members of Congress from both parties can find common ground. The 2020 election results reinforced this tradition, with voters in both red and blue states approving transportation funding at similar rates. This bipartisan character of infrastructure investment is critical for contractors because it means infrastructure legislation has a genuine path through a divided Congress. When the public sends such a strong signal at the ballot box, Washington has little choice but to listen. The challenge, of course, lies in agreeing on the scale and funding mechanisms, but the direction of travel is clear.
The FAST Act Extension and the Urgency of a New Surface Transportation Bill
One of the most pressing legislative items on the 2021 calendar is the expiration of the Fixing America’s Surface Transportation (FAST) Act extension, which is set to expire on September 30, 2021. This deadline creates both urgency and opportunity for the construction industry. For contractors who track federal funding cycles closely, the FAST Act expiration represents a hard deadline that will force action from Congress regardless of other legislative priorities.
Why the FAST Act Matters for Contractors
The FAST Act, originally enacted in 2015, authorizes federal surface transportation programs for highways, bridges, and transit systems. It provides the legal framework and funding certainty that state departments of transportation and contractors rely on to plan multi-year projects. Without a new multi-year authorization, states face uncertainty in project planning, bidding, and contract awards.
For contractors, the stakes are straightforward:
- A lapse in authorization would delay new project lettings and disrupt the bidding pipeline, forcing contractors to reduce their backlog projections.
- Short-term extensions prevent states from committing to large, multi-year capital projects, limiting the scale of work available.
- Long-term funding certainty allows contractors to invest in equipment, workforce, and materials with confidence, supporting business growth.
- Multi-year bills typically include higher funding levels than stopgap extensions, delivering more total dollars to the construction market.
What the 117th Congress Faces
Experts tracking infrastructure policy believe that members of the 117th Congress and the incoming administration heard the voter message clearly. A key part of the legislative agenda in early 2021 will be enactment of a multi-year surface transportation authorization bill before the FAST Act extension expires. Lawmakers understand that investments in infrastructure get people quickly back to work and strengthen the economy. The construction industry can expect significant increases in infrastructure investments that will positively impact the road building market throughout 2021 and beyond.
The Biden Administration’s Infrastructure Vision and Build Back Better Plan
President Biden’s transition team made clear from the outset that infrastructure would be a cornerstone of the new administration’s economic agenda. The state of U.S. infrastructure and its direct effect on the economy became a central talking point during the campaign and continues to drive policy discussions in Washington. The administration’s approach ties infrastructure investment directly to job creation, manufacturing revitalization, and long-term economic competitiveness.
Build Back Better: Key Infrastructure Components
The Build Back Better plan outlined ambitious goals for modernizing American infrastructure across multiple sectors. For the construction industry, the most relevant components include:
- Major investment in roads, bridges, and highways to address the backlog of structurally deficient bridges and deteriorating pavement that has accumulated over decades of underinvestment
- Modernization of public transit systems in large metropolitan areas dealing with unreliable service and aging infrastructure that threatens economic mobility
- Expansion of broadband infrastructure to rural communities, creating new construction opportunities in trenching, fiber installation, and related civil work
- Investment in water and wastewater systems to replace lead service lines and upgrade treatment plants
- Creation of millions of family-wage jobs tied to infrastructure projects, directly benefiting construction workers and their communities
- Support for domestic manufacturing of construction materials and equipment, strengthening the supply chain
How the Plan Addresses Both Urban and Rural Needs
A distinguishing feature of the proposed infrastructure agenda was its attention to both large metropolitan areas and rural communities. Large metro areas deal with unreliable transit systems and soon-to-be-jam-packed highways, while rural communities suffer from bridges in poor condition and deteriorating roads that limit economic opportunity and access to essential services. This dual focus means that contractors working in both urban and rural markets stand to benefit from the proposed investment levels.
| Infrastructure Sector | Key Challenges | Expected Impact on Contractors |
|---|---|---|
| Highways and Bridges | 43% of public road miles in poor or mediocre condition; 46,000 structurally deficient bridges | Increased lettings for pavement rehabilitation, bridge replacement, and widening projects |
| Public Transit | Aging fleets and stations; deferred maintenance backlog exceeding $100 billion | Station modernization, track work, and facility upgrades |
| Water Infrastructure | Lead service lines; aging treatment plants; stormwater management needs | Pipeline replacement, treatment plant construction, and green infrastructure projects |
| Broadband | Rural connectivity gaps; right-of-way installation requirements | Trenching, conduit installation, and fiber deployment contracts |
| Rail and Ports | Freight bottlenecks; intermodal connectivity deficiencies | Rail yard expansion, port dredging, and intermodal facility construction |
Whether the administration can turn these ambitious goals into enacted legislation remains to be seen, but the direction of travel is clear. The construction industry has not seen this level of political momentum behind infrastructure investment in over a decade, and even partial success would represent a significant increase in available work.
Preparing Your Construction Business for an Infrastructure Boom
Even as legislative details remain to be negotiated, forward-thinking contractors should begin preparing now for the increased project volumes that infrastructure investment will bring. Understanding the construction bidding process and how to position your company competitively for infrastructure work is essential preparation for the opportunities ahead.
Strategic Actions for Contractors
Construction firms that want to capitalize on the anticipated infrastructure surge should consider the following preparatory steps:
- Review your bonding capacity. Large infrastructure projects require substantial performance and payment bonds. Contact your surety provider to ensure your bonding limits can accommodate larger project values and consider expanding your bonding line if necessary.
- Update your prequalification documents. State departments of transportation and municipal agencies require contractors to maintain current prequalification status. Verify that your safety records, financial statements, and equipment inventories are up to date and reflect your current capabilities.
- Assess your workforce needs. An increase in infrastructure projects will intensify competition for skilled labor. Consider apprenticeship programs, recruitment strategies, and retention incentives now rather than waiting until the market tightens.
- Evaluate equipment capacity. Determine whether your current fleet can handle increased project volumes or whether additional equipment investments will be necessary. Lead times for new equipment may be longer than expected if demand surges across the industry.
- Build relationships with subcontractors. Large infrastructure projects often require specialized subcontractors for earthwork, paving, structural concrete, and utility work. Establish relationships early to ensure you have reliable partners when project volumes increase.
Sectors Poised for Growth
The investment priorities signaled by the new administration suggest that certain construction sectors will see particularly strong growth. Contractors specializing in building smart infrastructure with modern materials and technologies will be especially well-positioned, as federal funding programs increasingly emphasize resilience, sustainability, and technological innovation. Bridge construction and rehabilitation, highway widening and pavement preservation, transit station modernization, water and wastewater treatment plant construction, and broadband and telecommunications infrastructure are all expected to see significant increases in funding and project lettings. Contractors who position themselves in these sectors early will have a competitive advantage when the funding begins to flow.
The Importance of Patience and Realism
While the outlook is genuinely positive, contractors should also prepare for the realities of legislative timelines. Infrastructure bills are complex pieces of legislation that require negotiation, compromise, and time to move through the congressional process. The September 30 FAST Act deadline creates pressure, but the actual enactment of a new multi-year bill may extend into the summer or fall of 2021. Contractors should plan for a gradual ramp-up in project lettings rather than an immediate flood. The projects will come, but patience and strategic positioning will separate the firms that thrive from those that scramble when opportunities arrive.
The combination of historic voter support, a clear bipartisan mandate, and an administration committed to infrastructure investment creates the most favorable policy environment for construction contractors in years. By preparing now, contractors can ensure they are ready to build the infrastructure that the nation needs and that voters have demanded at the ballot box.
The road ahead looks brighter for the construction industry than it has in a long time. With smart preparation and realistic expectations about legislative timelines, contractors can make the most of the opportunities that 2021 and the coming years will bring. The key is to start preparing now, before the funding begins to flow and competition intensifies.