In November, President Biden signed the Infrastructure Investment and Jobs Act, effectively putting a $1.2 trillion investment into America’s infrastructure. With a large amount of this investment going towards roads and bridges, asphalt companies across the nation are gearing up for increased government-funded projects.
To learn more about how the Infrastructure Investment and Jobs Act will impact asphalt paving companies and asphalt plants in the Maryland area, we spoke with Rick Scheetz, President and Chief Operator at Gray & Son.
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Overview of the Infrastructure Investment and Jobs Act
The Infrastructure Investment and Jobs Act will pour nearly $1.2 trillion into America’s infrastructure over the next 10 years. This investment in infrastructure has been long-awaited. “They’ve kicked the can down the road every time a new administration has gotten [into office] and now they’ve finally gotten something passed–bipartisan, which is great,” said Scheetz.
While traditional infrastructure elements such as roads and bridges will be a large focus–receiving roughly $110 billion of the budget–the Act will also allocate resources to increasing access to high-speed internet access, removing unsafe lead pipes from America’s drinking waterways, and developing clean, reliable energy sources. “This is one spending bill that, I think, the public can much appreciate. They’ll see roads being built, they’ll see bridges being built, something tangible,” noted Scheetz.
Maryland Infrastructure and the Infrastructure Investment and Jobs Act
Currently, it’s not entirely known what the more granular allocation of the bill will look like for road-related infrastructure on a state-by-state basis. “The one thing we do know is that the baseline spending [in Maryland] is 3.2 billion dollars. What we’re [projecting] to see is an additional 1.3 billion dollars—a roughly 40% increase in spending. That’s great,” said Scheetz. “The whole industry has been looking for a large, long-term authorization bill for many, many years.”
In addition, it is still to be decided how projects and areas of need will be prioritized. In Maryland, the busiest stretches of 695 and 495 will most likely see investment in infrastructure to help with easing congestion. Although these projects may take up a larger portion of the budget, rural areas will not be forgotten—they’re expected to see an increase in spending, too. “It doesn’t take a lot of spending to go over the baseline spending for a Cecil County or a Hartford County [project], which is great for those counties because there are a lot of great projects that are going to come out of those rural areas,” said Scheetz.
Hiring Demands for New Projects
Although the possibility of new projects has excited the paving industry, the reality is that work cannot be done without a workforce. Many industries are facing recruitment and retainment woes, and construction is no exception. In fact, there were 420,000 job openings in the construction industry in October 2021 according to the U.S. Bureau of Labor Statistics. This number has been on an upward trend for most of the past year.
Scheetz and his team at Gray & Son believe that the Act will only help to remedy this problem. Over the past decades, construction has become a competitive industry. This increased spending will help to bring more seats to the table. “The pie’s getting bigger [and] there’s more work for everybody. It should help with wages, it should help with benefits, it should help with companies being able to make more margins. It’s a good thing, it’s a really good thing,” said Scheetz.
However, it’s not just the number of hard hats on a job site that will determine a project’s success. “Part of the work is getting the people to perform the work, but part of it is the technical skills,” points out Scheetz. The team at Gray & Son has placed a high level of priority on looking for and developing these technical skills in their employees.
Scheetz stressed the need for efficiency, communication, and utilizing advances in technology to help projects go smoothly. “From a whole management standpoint of the time we look at a job, bid a job, to the time we win a job, perform a job, and manage a job site, we need to be more efficient,” he said. “The sooner you can get on a job and off a job, the sooner you can get on another job.” Developing this level of quality and efficiency will be crucial with these larger, government-funded projects on the horizon.
Asphalt Plants and the Act
With infrastructure projects, people are only half the equation. Machinery will play a crucial role in the revitalization of the country’s roads and bridges, specifically asphalt plants. Asphalt plants across the country are using the winter months to gear up for what is projected to be the busiest season yet.
However, companies like Gray & Son are taking this phase of preparation in stride. “Our guys are veterans— the guys in the field and the managers do a great job of planning and taking care of the plants. They’ve done this all along, and they’ve been planning for busy, bigger seasons. They’re ready,” said Scheetz.
Plant maintenance is an annual occurrence, and, in some instances, can make or break a company’s year. “We go over every nut and bolt, every belt, every screw, and make sure we’re ready for the season,” explained Scheetz. The result is a more efficient plant that has fewer breakdowns throughout the year, which is important for not only Gray & Son but the clients who purchase asphalt mix from them. “Our guys are pretty proud of the performance of the plant and the quality of the mix. There’s relatively 0 rework done when we put asphalt down, and our plants have relatively few breakdowns because we do a lot of winter maintenance,” said Scheetz.
Paving the Way for Improved Infrastructure
With spring almost here, paving companies across the country are gearing up to break ground on government-funded projects brought by the Act. Gray & Son is no different, taking part in meticulous annual plant maintenance and investing in employee recruitment and training. If you’re looking to take advantage of a fast-growing industry and the career opportunities that Gray & Son provides, visit our career page today.