Construction firms such as AECOM, Jacobs, and Quanta Services are set to play key roles in rebuilding efforts following the Southern California wildfires that have claimed at least 25 lives and displaced tens of thousands, according to Baird, a Milwaukee-based financial services company. The destruction from the wildfires, with damage to homes, businesses, and infrastructure, could total between $250 billion and $275 billion, making it the most expensive fire in U.S. history.

In response, President Joe Biden announced that the federal government will cover 100% of disaster response costs for 180 days. This opens the door for firms like AECOM, which holds a FEMA contract for public assistance grants, and Jacobs, with a $570.5 million hazard mitigation contract with FEMA. These companies are set to lead recovery and rebuilding efforts.

Recovery and Long-Term SupportAlong with immediate restoration, experts predict the wildfire damage will lead to long-term projects, such as undergrounding power lines to improve grid resilience. Contractors like MYR Group, MasTec, and Quanta Services, who have experience with electric grid restoration, are expected to see a surge in demand for wildfire-related restoration projects.

Tetra Tech, a Pasadena-based engineering firm, is also poised for recovery work with its extensive experience in disaster restoration. The company has supported nearly 100 major disasters across 44 states, positioning it as a key player in future wildfire recovery efforts.

As part of the recovery, AECOM’s Public Assistance grant program will aid in restoring public infrastructure, and Jacobs’ FEMA contract focuses on hazard mitigation across multiple regions. "The delivery of FEMA’s Public Assistance program will allow state, tribal, and local governments to quickly respond and drive the recovery of impacted communities," said Lara Poloni, AECOM's president.

With both short-term recovery and long-term rebuilding projects, these disaster recovery contractors are poised to play pivotal roles in the effort to restore and rebuild the affected areas.