What happened: The value of state and local government contract awards jumped 25 percent in calendar year 2022, the highest annual growth rate since ARTBA began collecting this data in 1997.
Total annual awards reached a record $111.2 billion, led by a 24 percent increase in highway value (to $79.8 billion) and a 26 percent leap in bridge value (to $22.4 billion). By comparison, the average annual growth rate for combined highway and bridge awards was three percent the past four years.
Funding from the Infrastructure Investment and Jobs Act (IIJA) drove market growth. Highway and bridge contract awards increased in 40 states (plus D.C.) and more than 29 percent in 25 states.
Why it matters: Contract awards are a leading indicator of market activity. The growth in new awards will translate into construction value as work is completed over the coming months and years.
ARTBA estimates that high inflation eroded up to half the nominal increase in award value, but the contract award surge is still significant. The number of newly awarded highway and bridge projects rose 12 percent in 2022 (from 33,886 to 37,971), more than seven times the average annual increase over the previous four years.
Visit ARTBA’s Transportation Construction Market Intelligence service for details by state and mode.
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