The construction industry, one of the country's most vital industries, has felt the impact of shifting policies across recent presidential administrations. Each administration brings unique opportunities and challenges to builders, developers, and infrastructure stakeholders nationwide. 

From President Obama's stimulus-focused recovery programs to Trump's deregulation and tax incentives and Biden's historic infrastructure investments, every administration since 2010 has drastically shaped the industry's landscape.

This article will examine each administration, emphasizing its benefits and challenges. 

Obama Administration (2009-2017)

Policies: The Obama administration launched the American Recovery and Reinvestment Act (ARRA) in 2009, which included significant infrastructure investments to stimulate recovery after the 2008 recession. This funding primarily supported transportation projects, public buildings, and green energy initiatives.

Impacts: ARRA allocated over $100 billion to infrastructure, leading to job creation in the construction sector. However, recovery from the Great Recession was slow, and job growth in construction was steady but gradual, with the industry eventually adding approximately 1.3 million jobs by the end of Obama's second term.

Challenges: A gradual economic recovery limited the immediate effects of these investments, and the industry faced workforce shortages as demand slowly increased.

Trump Administration (2017-2021)

Policies: The Trump administration focused on reducing regulations to streamline construction project approvals and planned a large-scale infrastructure bill that ultimately did not pass Congress. The Tax Cuts and Jobs Act in 2017 provided tax incentives for construction businesses, including lower corporate tax rates, which freed up capital for investment.

Impacts: By reducing environmental and labor regulations, the Trump administration aimed to accelerate project timelines, which benefited certain construction projects, especially in the oil and gas sectors. Construction employment grew steadily, adding about 500,000 jobs by early 2020.

Challenges: The COVID-19 pandemic disrupted construction in 2020, causing project delays and layoffs. While some segments, such as residential construction, rebounded quickly due to low mortgage rates, commercial projects slowed significantly.

Biden Administration (2021-Present)

Policies: The Biden administration prioritized infrastructure with the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA). These laws have allocated over $1.2 trillion for infrastructure improvements, including transportation, broadband, and green energy projects. Additionally, the administration reinstated and expanded environmental regulations and labor standards, such as the Davis-Bacon Act, to ensure fair wages on federally funded projects.

Impacts: Since the start of Biden's term, the construction industry has added approximately 670,000 jobs, reaching record employment highs in 2023. The BIL has particularly boosted employment in sectors like highway, street, and bridge construction, adding 38,300 jobs since its enactment.

Challenges: While infrastructure funding has created demand, the industry faces workforce shortages and material cost increases. Efforts to raise wages and labor standards also bring mixed effects, increasing income for workers but potentially impacting profit margins for firms.

What to Expect from Trump's 2024 Presidential Win: 

As Donald Trump prepares for a potential second term as U.S. President in 2024, the construction industry faces opportunities and challenges. A renewed Trump administration would likely revive his "America First" economic approach, emphasizing tariffs and restrictions on imported goods to support domestic manufacturing. This could lead to an increase in costs for materials like steel and aluminum, as tariffs were previously imposed on these goods from key suppliers, particularly China. Such policies may help American producers but could drive up costs for construction firms relying on imported materials, potentially affecting profit margins across the industry​

Trump's stance on environmental regulations may also bring a shift. His administration previously rolled back environmental protections, which allowed for faster permitting processes and cost savings on infrastructure projects, especially in sectors like energy. This could again benefit large-scale construction projects, particularly those that are resource-intensive if similar regulatory rollbacks are reinstated​

In terms of labor, the industry could experience stricter immigration policies, which Trump previously promoted to safeguard American jobs. However, the construction sector has historically depended on immigrant labor, and tighter immigration controls could exacerbate workforce shortages in a sector already dealing with a high demand for skilled labor.​

Overall, the potential for reduced regulatory burdens and support for domestic manufacturing could benefit some parts of the industry, while increased materials costs and labor constraints could add new pressures.

Each administration has significantly influenced the construction industry, between balancing economic stimulus efforts, regulatory changes, and infrastructure investments. The industry has responded to both the benefits and challenges of these policies, with long-term projects under recent laws set to shape construction demand and employment for years to come.