THIS IS AN OPINION
We'd also like to hear yours.
Tweet us @ArkBusiness or email us
This week’s issue, with a focus on infrastructure, comes at an interesting time.
A number of industries involved in infrastructure have enjoyed several years of inflated government investment during and following the pandemic. The sector is also set to enjoy a protracted period of investment thanks to federal legislation that will bolster spending for years to come.
In much of the country, construction cooled in the last two years, thanks in large part to inflated input costs, labor shortages and a slowdown in the real estate market.
Arkansas, though, has seen a swift rise in construction jobs since the start of the pandemic in 2020.
The Natural State ranked 10th among states from April 2020 to April 2024 in new construction jobs, according to an analysis of U.S. Bureau of Labor Statistics data by the Arkansas Policy Foundation.
In that period, construction jobs here increased from 51,400 to 68,200 — a 32.75% growth rate that topped the national average, 25.7%.
The top 10 states in terms of construction job growth rate, per the Policy Foundation.
- Michigan 98.8%
- Vermont 65.3%
- Pennsylvania 59.6%
- Massachusetts 54.9%
- New York 54.6%
- Alaska 34.9%
- Montana 34.48%
- Rhode Island 33.3%
- Idaho 33.2%
- Arkansas 32.7%
The foundation’s analysis didn’t look at explanations for the growth, but we can be fairly certain post-pandemic stimulus efforts and the Infrastructure Investment & Jobs Act loomed large.
Now, the Federal Reserve continues its dance, trying to keep interest rates high long enough to cool inflation without triggering a recession. The timing could be excellent.
I’ve been telling people for most of 2024, as I did last year, that the Fed won’t cut its benchmark rates this year. I felt pretty good about that prediction until recent weeks when the prognostications and bond market indicators began to turn. It now appears the Fed could be considering a rate cut as early as September, and Fed Chair Jerome Powell told a congressional committee last week that an end-of-summer rate cut remains very much in play.
Most Arkansas Business readers would welcome that news, which would come just in time, perhaps, to continue supporting growth in the aforementioned sectors.
In our recent survey of Arkansas CEOs, many said a Fed rate cut would also trigger additional positive impacts on growth trend lines across the broader economy. While a lot of companies have decided not to wait on the Fed to proceed with capital investments or other growth strategies, several executives told us that a rate slash would accelerate those efforts or trigger additional moves.
That’s good news as long as inflation remains in check.
Sign up for Daily E-news
