A tradition dating to the early 1790s when private laborers began work on such government structures as the White House, is more alive than ever, according to a new survey, as contractors are increasingly looking to the public sector for new projects. The survey, High Hopes for Public Sector Funding Amid Workforce and Supply Chain Challenges, was conducted by the Associated General Contractors of America, and reveals bullish expectations among contractors for public sector work in 2023. According to the survey, some 42% of contractor respondents said they expect to see more bridge/highway and general transportation work this year; followed by 38% who are anticipating more water and sewer project work. Respondents also expect to see increased utility power, hospital, and schoolwork in the coming year. At the same time, just under a quarter of the respondents forecast less work in both the private office and retail segments. Contractors also, according to an analysis accompanying the survey, anticipate taking on projects for the General Services Administration, Department of Veterans Affairs, U.S. Army Corps of Engineers, and the Naval Facilities Engineering Systems Command. Although it appears a given that many new projects will be coming out of last year’s Infrastructure Investment and Jobs Act, the survey reveals that only 5% of respondents have so far worked on a new project funded by the law. “The fact that so few firms have benefitted from the infrastructure measure may be the result of the significant regulatory obstacles the administration has imposed that are creating confusion among state and local officials,” contends the analysis. “In particular, the administration has fumbled the implementation of new Buy America regulations, leading to widespread confusion about which building materials are covered by the new measure and which are not,” the analysis adds. Exactly 58% of the firms participating in the AGC survey report performing $50 million or less in work last year; followed by 34% who undertook between $50 million and $500 million in projects. Roughly 8% performed over $500 million in work during the year. By Garry Boulard
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