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Stimulus Package and its Impact on the A/E/C Industry

Much attention has been given to the impact that the $787 billion American Recovery and Reinvestment Act of 2009 will have on “shovel ready” infrastructure projects; however, construction funding is broader than just highways, bridges, and transit.  Here’s a quick breakdown – is your firm positioned for the work?

• Veterans Administration – $1.25 billion for new construction and modernization

• Department of Defense – $4.24 billion for repair, modernization, and energy efficiency upgrades

• Department of Defense – $2.33 billion for “quality of life” projects – housing, child care, medical facilities

• Housing & Urban Development – $1 billion for Community Development Block Grants

• Housing & Urban Development – $250 million for energy efficiency upgrades

• Housing & Urban Development – $2 billion for redevelopment

• Public Schools – $39.5 billion for local school districts; modernization/upgrade is an allowable use of the funds

• General Services Administration – $4.5 billion for energy efficiency upgrades

• Fire Stations – $210 million in grants

• Federal Courts Facilities – $300 million

• Agricultural Department – $200 million

• National Institutes of Health – $500 million for construction and renovation of NIH facilities

• National Institutes of Health – $1 billion in grants for non-NIH construction and renovation

There are many other A/E/C related opportunities beyond this list.  Some are dedicated to a specific project ($450 million for Department of Homeland Security Headquarters) while others are a little more difficult to wrap your hands around ($6.3 billion in energy efficiency and conservation grants).

Beyond the direct spending, there will also be spin-off opportunities.  For instance, manufacturers of construction equipment and building products may need to increase production to meet demand. 

Are your SF 330 forms current?  Are you monitoring www.fedbizopps.gov for Federal opportunities?  Are you monitoring public notices in the local papers for CDBG-related projects?

The key for your firm is to make sure that you are positioned NOW – 70% of the funding is anticipated to move forward within the next two years. 

Make sure you are current on the latest stimulus package news at McGraw Hill's stimulus page: http://construction.com/stimulus/. 

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© 2009 by JDB Engineering, Inc.