What Will the Proposed $2.3T Infrastructure Plan do For Manufacturers?
On Wednesday, March 31, 2021, President Joe Biden unveiled his proposal for a $2.3 trillion infrastructure plan. This once-in-a-generation plan puts tremendous emphasis on restoring and modernizing the backbone of everyday American infrastructure: transportation, utilities, telecom, and energy. If passed, it promises to be a boon for manufacturers, who will answer the call for a revitalized infrastructure across every major sector of industry.
$621 billion for transportation infrastructure
President Biden’s proposed plan calls for a $621 billion allocation to transportation infrastructure. Funds will support the restoration and modernization of roads, bridges, public transit, electric vehicle charging stations, and other transportation infrastructure. Notably, the spending will prepare the country for a more modern auto industry.
Many Republicans and Democrats still don’t see eye to eye on this specific segment of the infrastructure plan. The biggest contention comes from the source of funding. President Biden intends to fund the infrastructure plan by raising corporate taxes from 21% to 28%. Although the business community agrees an infrastructure plan update is long overdue, there’s still much debate over increasing taxes.
$111 billion for utilities and waterworks
If approved, the infrastructure plan would allocate $111 billion to replacing lead water pipes and upgrading sewers — a much-needed improvement for municipalities across the country, including underserved communities in Washington D.C., Flint, MI, and Pittsburg, PA. If it remains unchanged, this segment of the bill would be a boon for pipefitters, construction crews, and engineers. More important, a modernized utility infrastructure opens the door for more efficient expansion and improvement in the future.
$100 billion in telecom upgrades
An anticipated $100 billion allocation would go toward installing broadband internet all over the country. Telecom professionals would see a huge uptick in government contracts in both urban and rural areas, laying fiber, installing 5G towers, and expanding grid nodes to support the massive influx of digital activity from a now-remote workforce. The improvements would also set the tone for smarter factories, making it easier for burgeoning manufacturers to build out their Industrial Internet of Things (IIoT) and connected infrastructure.
$100 billion in clean energy investments
Biden’s stance on climate change and green energy caps off a $100 billion allocation in the infrastructure plan. The plan outlines a strategy for upgrading the power grid, with the intention of delivering clean energy to a larger segment of major cities. This investment has rippling effects, touching everyone from solar array manufacturers to energy grid operators. As the United States struggles to set a good precedent for clean energy, infrastructure investment is a clear place to start.
A boon for manufacturers
U.S. manufacturing has access to a wealth of opportunities via the Biden administration’s infrastructure plan. With municipal projects dedicated to modernizing schools, renovating hospitals, and training workers, manufacturers will face high demand. As more specific initiatives take shape, manufacturers stand to play a pivotal role in bringing them to fruition.
Although the political debate is still ongoing, there’s no doubt that when it passes — no matter the form — manufacturing will lead the charge in modernizing the most vital systems in U.S. society.
