One for the Record Books: 1Q Highway & Bridge Contract Awards

What happened: Highway contract awards are up 12 percent in the first quarter (1Q) 2023 compared to last year, reaching $19 billion. Bridge awards are down but still above the historical average. Awards for both modes are still up more than 42 percent over average levels from 2019-21, before enactment of the Infrastructure Investment and Jobs Act (IIJA). The number of contracts awarded also hit a 1Q record level – increasing 11 percent to 7,700.

Why it matters: Contract awards are a leading indicator of future construction activity. Increased funding from the IIJA drove a record year in 2022, with total annual awards climbing 25 percent. Through March, highway awards continue to grow over these record levels. The first quarter is usually a slower season for construction, so data from the period can be a volatile predictor of full calendar year activity.

Dig deeper: Detailed data by state and mode on the value and number of awards is available through ARTBA’s Transportation Construction Market Intelligence Service (TCMIS). The TCMIS also includes interactive information on all 50 state transportation budgets.