Market Snapshot: Infrastructure Investments

Last month, the American Society of Civil Engineers (ASCE) published an updated assessment of the country’s infrastructure. The last ASCE report on infrastructure investments was issued in 2021, months prior to the passing of the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), which added over $580 billion in funding towards surface transportation, energy, water, airports, and ports and inland waterways. These bills have narrowed the investment gap but are set to expire in 2026. The newly issued report looks at different scenarios over the next 10 and 20 years that quantify total funding needs and anticipated investments. The estimated expenditures between 2024 and 2026 total $344 billion.

Beyond 2026, if federal infrastructure authorizations revert to pre-pandemic levels, anticipated investments would drop by about 17% overall. Below is the breakdown of the potential decreases by infrastructure category:

Major Infrastructure Sector
Percentage Decrease by Reverting to 2019 Levels
Surface Transportation
25.4%
Water Transportation
18.8%
Aviation
17.8%
Energy
9.5%
Drinking Water, Wastewater, & Stormwater
4.3%
TOTALS
17.3%

The report also estimates declines in output by industry if funding levels go back to where they were in 2019. The biggest losers in that scenario would be manufacturing, finance/insurance/real estate, professional services, and logistics. In relative terms, the most negatively impacted sectors would be administrative and support services, waste management and remediation, health care, social assistance, entertainment, and education.

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