Alger on the money - A bridge to somewhere ?
25 May 2018
Infrastructure across the U.S. is failing. Scores of aging highways, bridges, airports, and water systems need repair. A government infrastructure spending package could significantly drive economic activity and revenues for companies that are involved in any future reconstruction.
- The U.S. faces more than a $2 trillion infrastructure funding gap, defined as needed investment less estimated funding, through 2025. The country’s overall grade on the state of infrastructure is a D+, according to the American Society of Civil Engineers.1
- State and local governments are responsible for public infrastructure as they own over 90% of non-defense public infrastructure assets.2 Unfortunately, state and local government spending on infrastructure is at the lowest level in over half a century.3
- The Trump administration proposed a $1.5 trillion infrastructure plan earlier this year.However, lawmakers are currently exchanging ideas about how to fund potential legislation and a firm plan has not yet materialized.
- Potential beneficiaries of a large infrastructure spending program may be materials companies, specifically those producing construction materials such as aggregates and cement, as well as industrial companies, including those that produce machinery.
1 ASCE, “2017 Infrastructure Report Card.”
2 Center on Budget and Policy Priorities calculations of U.S. Bureau of Economic Analysis data on fixed assets, 2015
3 Based on state and local government gross investment as a percentage of GDP in 2016 using data from the U.S. Bureau of Economic Analysis.