Leaders from two of the nation's leading construction trade groups have expressed their anticipation for the new Trump administration. They hope that their industry will be relieved from the burden of excessive regulations and policies implemented under President Biden, which they claim have hindered the sector's further growth. On Monday, the Biden administration boasted about the addition of 1.6 million new construction and manufacturing jobs. However, Ben Brubeck, vice president of regulatory affairs for the Associated Builders and Contractors, cautioned that beneath this seemingly significant announcement, "the growth could be much better if we were in the right economic and policy environment."

Construction Industry Awaits Regulatory Relief under Trump

Regulatory Burdens under Biden Administration

The Biden administration's various programs, such as the Infrastructure Investment and Jobs Act (IJA), the CHIPS and Science Act (CHIPS), the Inflation Reduction Act (IRA), and the American Rescue Plan Act (ARPA), have not lived up to the expectations of construction trade group members. Ben Brubeck's surveys show that a relatively low number of members have participated in these funded projects. This is attributed to the long time it takes for the money from these programs to be disbursed due to burdensome regulations like permitting requirements. Additionally, oppressive labor policies and increased borrowing costs have also contributed to less growth than could have been achieved otherwise.

For example, the permitting process has become a major hurdle, delaying the start of many construction projects. This not only affects the immediate growth of the construction sector but also has a ripple effect on related industries. The increased borrowing costs make it more difficult for construction companies to secure financing for their projects, further limiting their ability to expand.

Impact on Construction Sector Growth

Brian Turmail, vice president of public affairs and workforce for the Associated General Contractors of America, also emphasizes the failure of Biden's major construction investments due to regulations and review processes. "Our analysis is that the Biden administration kind of got in their own way affecting the market. They couldn't help but put in so many kinds of social and environmental rules on top of their funding, which slowed down the progress they so desperately wanted to see," Turmail said. He further pointed out that the administration's imposition of "a lot of new strings" on semiconductor plant construction has stymied growth.

These regulatory and policy issues have had a significant impact on the construction sector. Construction companies are finding it difficult to navigate through the complex web of regulations and requirements, which is preventing them from taking full advantage of the available funding. As a result, the growth potential of the sector remains unfulfilled.

Hope for Growth under Trump Administration

Despite the challenges faced under the Biden administration, Turmail and Brubeck have hopes that growth in the construction sector will pick up under the Trump administration. As companies manage their way through federal requirements enacted under Biden and anticipate potential rollbacks, they are excited about the potential for regulatory relief.

"The irony is that by the time President Trump comes back into office, we do anticipate a big bump up in infrastructure construction. Because all those projects where they've announced funding over the last two to three years will finally clear their environmental hurdle and begin construction," Turmail said. This shows that there is a glimmer of hope for the construction sector as it looks towards a potential change in administration.

Brubeck added, "Our federal contractors are completely on the sidelines right now for these large-scale projects, and this all started at the beginning of the year in January. So, they're really excited for the potential of regulatory relief on the horizon as a result of the Trump administration coming in." This sentiment is shared by many in the construction industry, who are eager to see a more favorable regulatory environment.

The White House did not provide Fox News Digital with an on-the-record comment in time for publication.