The U.S. transportation construction market is expected to shrink 5.5 percent next year, driven primarily by the severe economic recession caused by the coronavirus pandemic, according to ARTBA’s annual forecast. Overall, the value of work is expected to drop from $294.2 billion in 2020 to $278.1 billion in 2021. The major drop-off in transportation user fees caused by COVID-19 stay-at-home orders initiated last spring, high national unemployment, and the decline in public transit use and demand for air travel are the key factors affecting the outlook, Black said. She added that market growth could resume in 2022, provided that economic conditions improve and travel demand in some sectors begins to return to pre-recession levels. In her forecast, Black cautions that overall transportation construction activity will vary across the country as states deploy different strategies to balance their budgets and manage debt. States are expecting shortfalls in transportation revenues of anywhere from $35 billion to $40 billion through 2024.
After Record Year, Modest Declines Expected in 2021 Transportation Construction Market