Infrastructure projects are a consistently sizeable part of the nation’s economic life. Roads, bridges, railways, airports, public transit, ports, power grids and more are in constant need of upgrades, renovations or new construction to ensure they can effectively serve their purposes well into the future. These types of projects require significant financial investment, and this investment benefits regional and local businesses throughout the nation, as money flows to them.
What Does This Mean for Businesses?
Vast amounts of infrastructure spending correlate to significant numbers of government contracts being awarded to qualifying businesses. These businesses, in turn, secure the services of regional and local contractors to perform the work. These regional and local contractors hire more workers to get the job done. These workers get solid paychecks and spend that money on necessities and recreation at other businesses that provide these products and services. A lot of people get happy and stay happy because of this.
The Money Trail
Consider that building and renovating infrastructure requires a lot of equipment and machinery to do the job. Qualifying contractors and subcontractors who are awarded bids will need to use their existing equipment, purchase new equipment, or both and get that equipment to the job sites. In many instances, this will require the services of heavy equipment and machinery moving companies at the regional and local levels who have the capacity to perform these types of transport. Many of these companies will hire more workers to handle the substantial workload. Many of these workers will eat well, get haircuts and buy Harley’s to get to and from work or to just get from where they are to where they end up on their days off, spending money along the way. This is how the money trickles down and this how the work gets done.
Two great consequences of infrastructure spending are that the nation’s infrastructure looks better and the nation’s people feel better too!
