Utility and Communications Construction Update

What’s new in the underground construction segment? Learn how a recent infrastructure bill, spending, and the pandemic affects you.

*The following is an excerpt of an article originally published by Underground Construction at https://ucononline.com/magazine/2021/october-2021-vol-76-no-10/features/utility-and-communications-construction-update

By Daniel Shumate, Managing Director, FMI Capital Advisors Inc.

Working in the competitive bid-based underground construction segment often means juggling bits of information to make the most informed choices. The volume of information impacting the decisions of contractors has only increased in a challenging political and economic environment. Publicly traded companies of the Utility & Communications Construction Index (“UCCI”) have performed very well due to the volume of infrastructure spending and expectations for the infrastructure bill. 

The $1 trillion infrastructure bill passed by the Senate in July 2021 will reach large metropolitan centers and rural communities alike, with earmarks for roads and bridges ($110 billion), passenger and freight rail ($66 billion), broadband ($65 billion), electric and power infrastructure ($73 billion) and environmental remediation ($21 billion)1. While there will be a lot of competition bidding on these projects, contractors who understand the dynamics of their regional markets will be poised to capture work. Additionally, the use of federal funds to match state and local spending often means the impact in terms of projects generated can be much higher than the stated federal appropriation. 

Keep reading: https://ucononline.com/magazine/2021/october-2021-vol-76-no-10/features/utility-and-communications-construction-update

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