Budgets for 2012 construction programs will be pinched in the House. Appropriations Committee Chairman Harold Rogers (R-Ky.) on May 11 said 2012 nondefense spending would be cut $47.4 billion from 2011. He specified how funds will be split among subcommittees. The Transportation-Housing panel was cut $7.7 billion, or 14%. Most line-item levels haven’t been determined yet. House-Senate talks will set final figures.
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.