The rebuilding of America is underway. Both political parties want an infrastructure spending bill, yet gridlock is likely to prevent the desired $1.5 Trillion Bill ($150 Billion/year) as it requires either massive new deficit spending or higher taxes. A 25 cent Gasoline tax hike to generate $37.5 Billion/year, toll roads and burden shifting to the States will be major aspects debated soon that could offer a modest accomplishment. While another $1.5 Trillion Bill on top of the projected $1.5 Trillion shortfall due to tax cuts is a tough sell in this climate, the US economy is already investing in infrastructure now thanks to higher profits and tax revenues. Corporations and States in the larger faster growing coastal areas are leading the way with replenished cash levels. The 2 year lull in overall State revenue collections from the energy 2015 – 2016 slowdown along with weak stock market capital gains has been reversing in 2017 and we expect new highs in the number of States with revenue gains in 2018.
The private sector profit motive has spurred a wave of building that benefits infrastructure on the micro level and to some extent in surrounding areas. The online shopping wave led by Amazon blasted off over the past 4 years with a 500+% increase in spending on e-commerce warehouse distribution centers and personal storage spaces.
Federal dollars have yet to assist overdue Airport improvements, but key States have begun spending on passenger terminals at Airports. With air travel in the US growing at a rapid 7% annual pace, there is a significant deferred maintenance needs that will demand a sustained effort to modernize and expand.
New funding for micro-center hospitals to serve the aging population began taking off in late 2017 once the fears over Trumps failed Affordable Care Act (ACA) reduction efforts subsided. Growth for now is expected to continue at a healthy high single digit pace as retiring Boomers entire the 65+ bracket at a ~1.5 Million per year pace (about twice the rate of those entering the workforce).