Several mid-year events are aligning to create optimism within the construction industry: exponential government infrastructure spending, a continued housing shortage, the waning COVID-19 pandemic and boosted green building tax incentives. Combined, these elements will have an outsized impact on the construction industry over the next several years.
The passage of the bipartisan Infrastructure Investment and Jobs Act in 2021 cleared the way for billions in government spending to update the nation’s transportation systems, telecommunications networks and utility infrastructures. The $1.2 trillion package will impact all parts of the building industry, from engineering and design firms to contractors and their subs to the marketing and communications firms that support them. While the federal dollars have not fully reached the market, analysts expect a significant uptick in spending activity over the next 6-12 months.
Similarly, the recently passed Inflation Reduction Act contains provisions designed to reduce the U.S. carbon footprint. Included in those measures are several layers of tax incentives targeting the building industry. One key portion requires government projects to include green building materials and systems. Another incentive extends and boosts the green tax credits homebuilders and homeowners can access when upgrading systems and sourcing greener materials. This green initiative is also expected to impact all aspects of building and construction work and the supply chain.
Add to these two significant pieces of legislation an easing COVID-19 pandemic and continued demand for new housing and the future for engineers, designers and contractors may indeed look bright. For the smart business owner, now is the time to reevaluate your insurance coverage.
Oakbridge offers a full range of commercial insurance lines, from general liability to builders’ programs to workers’ compensation and professional liability. We can help structure a plan that provides the highest value coverage.
For owners considering or scaling their businesses, our team of risk management professionals can help you work to reduce the likelihood of a jobsite casualty, thus helping reduce premium costs and time lost to business interruption. We work with more than 30 surety markets for our bond program and we even provide coverage for municipalities that may be taking on future infrastructure projects.
Oakbridge is a Top 100 Independent Insurance Agency. Our best practices approach to protecting your assets is built on a foundation of mutual trust and respect. We’ve been helping our neighbors thrive for over 100 years.