Infrastructure spending is expected to decline 4.3% in 2009 despite the federal stimulus boost, says market analyst IHS Global Insight, Lexington, Mass. It attributes the projected falloff to state deficits and municipal funding shortfalls. The analysis projects a spending decline of 1.6% in 2010 and then a 2.4% increase the next year “as tax receipts improve and the federal stimulus is fully implemented.” IHS Global Insight projects power spending will increase by 1% this year but that “slumping demand” will reduce sector spending by 16% in 2010. Related Links: IHS Q2 Infrastructure Spending Market Analysis IHS Q2 Infrastructure Spending Press
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.