There has been much talk lately about the tone of construction spending. Two ways to profit jump quickly to an investor’s mind. One is residential construction, which includes single-family homes and multi-family homes, such as apartments, condos and the like. The other is nonresidential construction, which encompasses more than 15 subcategories, from manufacturing and power to educational and commercial.
While it may come as a surprise to some, the largest component of the nonresidential category comprises highway- and street-construction spending. In fact, these accounted for just more than 22% of March spending in the nonresidential patch. It was this particular line item that came into focus this week as we were reminded about the sad state of our roads and bridges at a time when we face yet another funding crisis.
In a bid to address the sad state of America???s roads and bridges, as well as jawbone yet another opportunity to put Americans back to work, President Obama talked this week about passing a bill to improve the country???s crumbling infrastructure before existing funding runs out at the end of this summer. There were several photo-op appearances, including Wednesday???s remarks from President Obama in front of the Tappan Zee Bridge in New York???s lower Hudson Valley. The more-than-16,000 foot cantilever bridge is in a state of disrepair after years of overuse; a replacement Hudson River bridge is expected to open in 2018.
Read more about how highway and bridge infrastructure will impact the economy at Eagle Daily Investor.