Transportation construction continues at a solid pace, registering 5% growth in 2014. This market segment is expected to grow another 7% in 2015, to $44.7 billion. However, Congress will need to pass a new or renewed transportation bill this year to add some stability — as well as funds — to this sector. At this time, it is highly uncertain that there will be a more permanent alternative than short-term extensions of Map-21, which has been approved by the House and is in the Senate for a vote. That extension would expire Dec. 18, 2015.
The transportation sector will continue to face difficulties due to the dockworker slowdown early in the year and volatile oil and gas prices, which have a negative effect on shipments over rail and road. Currently, the Association of American Railroads (AAR) reports total carloads for July 2015 are down 6.6% over the same time in 2014. In addition, high-speed passenger rail is slow to catch on in America, and will have to prove itself if there is ever to be a true transportation renaissance.
In the meantime, the focus on transportation will continue to be rebuilding current routes and runways to be safer and more efficient, especially in light of several high-profile accidents.
(Opening photo: Maksim Koval/iStock/Thinkstock)
