Be Careful What You Wish For

Given the size of the shutdown and concern of an impending recession, the next coronavirus stimulus aid bill will most likely come in the same form as the last one. This would be most likely followed by an economic stimulus package to battle the fallout and help aid recovery. One big bill project – supported by both parties in Congress – is the infrastructure bill.

Long touted as a necessity due to vulnerabilities in our eroded infrastructures, as well as a means to provide employability to a nation in the possible throws of a deep recession, the original infrastructure bill could soon get a thumbs up. And with broad-based support, it could quickly pass through Congress and the Executive Branch before the election.

Even if it does pass and we look at it as a panacea to inject life into the economy, these projects don’t grow overnight. Instead of a linear incline, it will be more exponential growth over time.

The expansion of construction projects will require more equipment but, while the capital expenditure (CapEx) will be available now, the output of new equipment may not necessarily keep pace with demand. However, we can add additional shifts to build more units as well as build or reopen plants to build equipment.

Innovation can help address one of the issues the construction industry has been dealing with for some time – skilled worker shortages. This chart by the Manpower Group, one of the world’s largest staffing companies, shows skilled worker shortages are becoming more prevalent. Yes, unskilled workers will be plentiful in a downed economy, but skilled workers will be in even higher demand and harder to find.

The most difficult jobs to place, according to Manpower Group, are skilled trade workers like mechanics, welders, and electricians.

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About the Author

Preston Ingalls

For over 48 years, Preston Ingalls, President/CEO of TBR Strategies has led maintenance and reliability improvement efforts

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