Construction Trade Groups Look to Trump Era for Regulatory Relief
As the construction industry grapples with the challenges posed by the current administration, leaders from two of the nation’s premier construction trade organizations have expressed their eagerness for the potential changes that might come with a new Trump administration. They are hopeful that a shift in leadership could pave the way for a reduction in regulations and policies that they believe have hindered growth within their sector under President Biden.
Mixed Messages in Job Growth
On a recent Monday, the Biden administration announced the addition of 1.6 million new construction and manufacturing jobs. However, this figure was met with skepticism by industry leaders. Ben Brubeck, Vice President of Regulatory Affairs for the Associated Builders and Contractors, pointed out that while the numbers appear promising, the reality is that “the growth can be much better if we’re in the right economic and policy environment.” His comments reflect a broader disappointment among construction professionals concerning the opportunities present under various Biden administration programs.
Disappointment with Current Programs
Brubeck elaborated on his association’s findings, noting little participation from members in key federal initiatives, namely the Infrastructure Investment and Jobs Act (IJA), the CHIPS and Science Act (CHIPS), the Inflation Reduction Act (IRA), and the American Rescue Plan Act (ARPA). “We survey our members on a pretty regular basis, and the number of members who reported participation in IJA, CHIPS, IRA, and ARPA-funded projects has been low—it’s been less than expected,” he said.
This sentiment was echoed by Brian Turmail, Vice President of Public Affairs and Workforce for the Associated General Contractors of America, who pointed out that regulatory burdens and lengthy review processes have hampered the effectiveness of these initiatives. “Our analysis suggests that the Biden administration has inadvertently put roadblocks in place that are affecting the market,” Turmail noted. “They couldn’t help themselves by intertwining social and environmental rules atop their funding, which in turn slowed down progress.”
Regulatory Challenges Facing the Industry
Brubeck criticized several regulatory measures, highlighting that it has taken an excessive amount of time for funds to be disbursed due to burdensome permitting requirements and increasing borrowing costs. Other measures, such as project labor agreements, have also been cited as contributing to the sluggishness of growth within the construction sector.
Both Brubeck and Turmail anticipate a turnaround in the construction industry should Donald Trump be re-elected. They believe that as federal regulations enacted under President Biden are reviewed and potentially rolled back, businesses will find it easier to navigate the federal requirements that have previously hindered growth.
Looking Ahead: Optimism for Future Growth
Turmail expressed a sense of irony regarding the potential timing of infrastructure construction activity, stating, “By the time President Trump comes back into office, we do anticipate a significant increase in infrastructure construction. This is primarily because projects that have secured funding over the last two to three years will finally clear their environmental hurdles and begin construction.”
Brubeck elaborated on the current state of the industry, emphasizing that many federal contractors have remained on the sidelines for large-scale projects since the beginning of the year. “They’re really excited for the potential of regulatory relief on the horizon,” he said, reflecting the anticipation felt within the construction community as they look forward to possible changes in leadership.
The White House Remains Silent
Despite multiple requests for comment, the White House has yet to provide an official statement in response to the concerns raised by the construction trade leaders. As the political landscape evolves ahead of the upcoming election, stakeholders within the construction industry will likely continue to express their hopes and apprehensions regarding federal policies and regulations that impact their operations.
In conclusion, as construction trade groups navigate an uncertain future, their aspirations for a more favorable regulatory environment under a potential Trump administration remain high. With the industry facing significant administrative hurdles, the promise of relief fuels a hope for renewed growth and opportunity in the construction sector.
