ConDig (Apr-26-22).  The recently approved Infrastructure Investment and Jobs Act (IIJA) is set exacerbate labor and supply chain pressures already being experienced by civil contractors, according to a recent survey by the Dodge Construction Network.

The survey revealed that 77% expected the act to make skilled workers more difficult to find, while 67% believed it would increase the cost of skilled labor. Nearly two thirds also said they believed it would exacerbate existing supply chain issues.

“While skilled labor shortages have been a chronic problem for contractors for many years, supply chain challenges have increased dramatically in the last year, with scarcities and delays not seen for decades on projects,” the survey noted. 

It added that 71% of civil contractors now report moderate to severe impacts on their projects due to the supply chain challenges, and 52% believed it would take more than a year for the supply chain to return to normal.

Despite the concerns, nearly half of civil contractors that responded to the survey expected the passage of the IIJA to positively impact their business in the next 12 months and 72% in the next two years. Moreover, over half expect their businesses to experience profit margin increases.