What happened: Public highway, pavement, and street construction—the largest transportation market sector—is expected to grow by double digits for the second consecutive year, increasing 16 percent to $126 billion in 2024 from $108.6 billion in 2023, according to ARTBA Chief Economist Alison Premo Black’s annual market outlook.
The increase in construction activity is supported by two factors:
- After two years, many of the projects supported by the Infrastructure Investment and Jobs Act (IIJA) are in the construction phase.
- Many states are increasing their own revenues to match federal funds and make additional transportation investments, using a combination of general fund transfers, bond issues, business taxes, and other user-fee increases.
ARTBA projects the total value of overall transportation construction work, including highways, will grow 14 percent from $187 billion in 2023 to $214 billion in 2024. This is in line with other market indicators, including ARTBA’s analysis of state department of transportation (DOT) budgets. State DOTs plan to increase highway and bridge capital spending by 13 percent in Fiscal Year 2024.
What’s next: Members can log in to the ARTBA website to get the full outlook, which includes 2024 spending on public transit and rail construction, bridge and tunnel work, airport terminals and runways, and ports and waterways.
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