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Expected Infrastructure Investments to Promote Demand for Building Materials

by Freedonia Industry Studies

November 25, 2020

An area of potential cooperation between Republicans and Democrats is that of funding infrastructure construction, as members of both parties recognize that the US has a significant backlog of projects that will soon need work. In addition to the prospect of the thousands of jobs needed to fix and repair roads and bridges, water and sewer lines, and other public works, there is also the potential for creating jobs for the many people employed in the production and delivery of these materials. Rising spending on infrastructure construction will spur demand for such materials as:

  • asphalt for road paving and reconstruction
  • cement and concrete (both poured and precast) for building bridges, roads, culverts, and other public works projects
  • pipe – either plastic, metal, and concrete – for water and sewer work
  • steel – used to make girders, joists, rebar, and other structural components

Furthermore, the new administration is expected to promote a variety of “green” projects that can serve to promote the development of alternative energy sources, reduce carbon emissions, and boost environmental stewardship, while also providing jobs sorely needed in the wake of the COVID-19 pandemic. These green projects can include the installation of:

  • solar panels – supporting demand for metal components need to erect these arrays
  • wind power arrays – boosting demand for metal and fiber composite turbines and related components
  • geosynthetics, vegetative roofing, and pervious concretes to promote solutions to urban water runoff issues
  • wiring, conduit, and other materials used to upgrade the nation’s broadband network

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.

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