Part of President Obama’s campaign platform in both elections was taking care of the American infrastructure. It is no secret that American roads and bridges are badly in need of repair and, to their credit, the American Congress has been allocating billions of dollars in funding to address the issues. According to the Associated General Contractors of America, hiring is brisk in over 200 metropolitan areas, but the pace of hiring still lags behind last year. One of the reasons that hiring is lagging behind is the fear that the federal money for transportation construction will run out before the year is up.
Federal Spending Is A Big Part Of Construction
Construction companies have been adding workers to keep up with the pace of the rise in commercial and residential construction, but the hiring stops short when it comes to federal projects. In a normal year, the beginning of summer indicates a hiring spike to handle the influx of federal transportation projects that are released during the spring. But in 2015, the fear of funding cuts is causing many contractors to hold back on hiring new workers and getting too deeply involved in the federal contracts that have been awarded.
A Quick Solution Is Needed
Now that summer is underway, construction industry officials are concerned that a lack of funding for upcoming projects could mean that thousands of workers will lose their jobs. Industry officials are urging the president and congress to address this issue immediately to allow contractors to make plans and hire more workers. If the funding issue is not solved before the current legislation runs out, then all federal projects would stop and all of the workers hired specifically for those projects would have to be let go.
How It Works And What Happens Next
According to Governing.com, the issue with the Federal Highway Trust Fund has been a concern since at least 2013. The way it works is that states issue contracts based on funds promised by the federal government. The states get billed by the contractors either daily or weekly, and then the states bill the feds.
In most cases, the feds will pay those invoices within a day or so of receiving them. If the highway fund gets low, those payments could slow down and states will have to stop projects rather than run up debt they cannot afford to pay. If the feds do not find a way to bolster the Highway Trust Fund, then work stops until the money is put in place and that puts contractors out of work.
Residential construction in Massachusetts is picking up and you can take advantage of that by getting your supervisor’s license through the Massachusetts Contractors Academy. If the potential drama surrounding federal road work has you concerned, then get your Massachusetts supervisor’s license and take part in the huge increase in residential and commercial construction going on throughout the entire commonwealth.
George N Root III is a professional freelance writer who has expertise in topics such as Internet marketing, business, advertising, and personal finance.