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Friday, October 16, 2009 - 12:08
Slow to get up

Some industry experts are saying that the road and bridge construction market bottomed out after the first quarter in 2009. Contractors, however, are still in need of being air-lifted out of what has been the worst economic conditions since the Great Depression.

According to a recent Roads & Bridges survey, over 80% of the road- and bridge-builder respondents expect business in 2010 to be either flat or down. Only 19.8% expect to work more jobs next year.

As for when the recovery will be official, 37.7% believe it will not happen until 2012, while 33.1% are a little more positive, saying it will be felt by the second quarter of 2011.

Equipment purchasing also looked weak, with 36.9% responding that they do not plan to rent or purchase machines in 2010, and 36.9% indicating they only plan to rent. Just over 26% actually plan to buy new equipment.

There are signs that American Recovery and Reinvestment Act (ARRA) funds are finally reaching the contractors’ payroll. According to the American Road & Transportation Builders Association, road and bridge builders had received $1.4 billion in payments through Aug. 31. The effect of the stimulus money is mixed among Roads & Bridges contractors surveyed.

Only 55% say they have won stimulus jobs in 2009, and when asked what they thought of the ARRA program, a strong 65.1% are reserving their opinion until 2010 when more money is expected to be released. Just over 31% said the emergency funding has only prevented them from making layoffs, while a paltry 3.6% have actually hired additional workers.

It may be awhile before Congress addresses long-term funding relief for the industry.

At press time, the House of Representatives passed a three-month extension of SAFETEA-LU introduced by Transportation & Infrastructure Committee Chairman Jim Oberstar (D-Minn.).

Oberstar was hoping to use the time to convince lawmakers to pass his six-year, $500 billion bill by the end of the year.

Those on the Senate side, however, still appeared to be favoring the Obama administration’s proposed 18-month funding extension, and as SAFETEA-LU was on the verge of expiring the word that was floating around the Congressional chambers was that a 30-day extension would be passed.

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