Aggregate Producers Waiting on Great National Infrastructure Program
President Trump’s announcement of the “Great National Infrastructure Program” as part of his campaign pledge had many in the aggregate and cement industries optimistic. The campaign pledge was a $1 trillion program to reconstruct roadways, waterworks, and bridges across the United States. The program was explained to have the possibility of creating millions of new jobs and the projects would mean a sharp increase in product demand for domestic aggregate and cement producers.
As of this publishing, no detailed plan has been released for the $1 trillion infrastructure plan. A 2018 Budget Fact Sheet on the Infrastructure Initiative published by The White House explains that the target of $1 trillion in infrastructure will be “funded through a combination of new Federal funding, incentivized non-Federal funding, and a newly prioritized and expedited projects.” The fact sheet continues that further work is necessary with Congress, and others, to “finalize the suite of Federal programs that will support this effort [infrastructure initiative].”
What does this mean for aggregate and cement producers who have heard of a possibility of an infrastructure boost for close to a decade? For now, it appears that the wait will continue with the New York Times reporting that according to more than a dozen administration officials, legislators, and labor leaders that “infrastructure remains stuck near the end of the legislative line” as negotiations continue over the budget, tax overhaul, and a push to toughen immigration laws. The 2018 Fact Sheet does reference $200 billion in outlays related to the infrastructure initiative in the 2018 budget but until more details come to light it is impossible to determine if this budget consideration will help the domestic aggregate and cement industries.
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