The Infrastructure Bill's Impact on Equipment and Machinery Owners
The Bipartisan Infrastructure Law (BIL) — or Infrastructure Investment and Jobs Act (IIJA) — will inject $848 billion into the U.S. economy.1 This once-in-a-generation investment aims to improve the quality and resilience of our nation's infrastructure so American institutions and individuals can thrive in an increasingly technologically-driven, environmentally conscious global market.
While manufacturers, construction contractors and service providers are expected to benefit from the BIL, they — as well as any enterprise that relies on machinery and equipment — may also carry the burden of its potential negative impacts if the influx of BIL-funded projects places any additional strain on supply chains, labor markets and our nation’s power grid.
Equipment Breakdowns Could Result in Longer, More Costly Downtimes as Infrastructure Projects Ramp Up
- The cost of equipment, parts and labor driven up by further demand could leave owners unprepared and possibly underinsured to absorb the expense of a loss.
- Enterprises eager to capitalize on BIL-related opportunities may bypass critical maintenance to keep production lines running, leaving their equipment increasingly susceptible to breakdowns as a result.
- Less experienced or overworked tenured technicians may be more prone to making serious mistakes when operating or servicing machinery.
- An outdated electrical grid could be put under stress to generate and deliver new, novel sources of energy, causing more outages and equipment-damaging surges, spikes, dips and arcs.
These possibilities may create a perfect storm where machinery owners could see equipment breakdowns happening more frequently and resulting in longer, more costly downtimes — leaving those who fail to prepare at greater risk.
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Source
1 H.R.3684 – Infrastructure Investment and Jobs Act, 117th Congress (2021-2022) — https://www.congress.gov/bill/117th-congress/house-bill/3684/text
Additional Sources
Whitehouse.gov content, “Delivery Results from President Biden’s Bipartisan Infrastructure Law” — https://www.whitehouse.gov/build/
A Guidebook to the Bipartisan Infrastructure Law for State, Local, Tribal, and Territorial Governments, and other Partners, May 2022 — https://www.whitehouse.gov/wp-content/uploads/2022/05/BUILDING-A-BETTER-AMERICA-V2.pdf
Fact Sheet: Securing a Made in America Supply Chain for Critical Minerals, Feb. 22, 2022 — https://www.whitehouse.gov/briefing-room/statements-releases/2022/02/22/fact-sheet-securing-a-made-in-america-supply-chain-for-critical-minerals/
Travelers Institute® Webinar: Insuring the Rebuilding of America: What’s in the $1.2 Trillion Infrastructure Law? What Will IT Mean for the U.S. Economy?, Travelers Institute, Dec. 15, 2021 — https://www.travelers.com/travelers-institute/webinar-series/symposia-series/infrastructure