New year, new challenges for IIJA

Amid the uncertainty, the IIJA provides a welcome stable infusion of $1.2 trillion in funding to a variety of construction sectors over five years. The legislation will boost a wide range of infrastructure work, from bridges to broadband, as well as bolster industries focused on low-carbon and American-made materials. However, there are a number of headwinds that could hamper the rollout of federal infrastructure work in 2023, and overcoming them requires careful planning. The challenge will be for the primes to find enough subcontractors to staff them. The IIJA stipulates a certain number of MWBEs to meet its inclusion goals, which adds to the difficulty of finding enough of the right subs. Although supply chains have bounced back somewhat since the early part of the pandemic, COVID-19-related shocks look set to continue and obtaining certain materials in a timely fashion will likely still prove challenging in 2023. This strain may be particularly noticeable in the spring, when construction season begins in the Midwest and Northeast, according to Callahan.

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