In response to the deteriorating state of U.S. infrastructure, the federal government enacted the Infrastructure Investment and Jobs Act—commonly referred to as the Bipartisan Infrastructure Law (BIL). This unprecedented $1.2 trillion investment, enacted in 2021, marks one of the most significant commitments to rebuilding and modernizing the nation’s physical infrastructure. And much of the funding is still on the table.

This funding includes $550 billion in new federal spending over five years, with $650 billion directed to reauthorizations and existing programs. The two major investment categories are transportation ($284 billion) and core infrastructure ($266 billion), covering everything from roads and public transit to broadband, clean energy and water systems. These investments carry substantial implications for electrical contractors—a sector positioned to benefit from and support many of the BIL’s initiatives. As of May 31, 2025, more than $431 billion in spending had been approved, with 66.77% obligated and 35.74% outlayed, according to the U.S. Department of Transportation’s “Infrastructure Investment and Jobs Act Funding Status report.”

According to Sean Grasby, senior vice president of construction and energy for Wesco, Pittsburgh, the financing methods used for federally funded infrastructure projects set them apart from other nonbuilding projects. 

“Federal funds are used to help attract additional investment through grants, secured loans, loan guarantees, lines of credit and other favorable financing options,” he said. “These financial vehicles often make it more feasible to commit to these projects without exposing contractors to excessive risk.”

ELECTRI International commissioned a report, “The Impact of Our Future Infrastructure Growth—Opportunities for Electrical Contractors,” to help ECs understand emerging opportunities, potential threats and strategic recommendations based on the BIL. 

Key findings: Spending distribution, relevance and scale 

The current project data is not available or has not been publicly reported. But, as of this writing, 20,331 projects worth $210 billion had been awarded. The Southern region led with 31% of the funding, followed by the Eastern region with 25%. States such as California, Texas and New York topped the list in terms of total allocations. 

A notable 72% of the projects awarded had budgets of less than $2 million. This is particularly encouraging for small and midsized electrical firms.

“Since the Bipartisan Infrastructure Law focuses on small projects and rural communities, there are key provisions in the bill designed to make the process easier for this group,” Grasby said. He highlighted that “15% of the funds go to support small projects [and] 30% of INFRA funds are designated for rural regions with populations under 200,000.” 

The largest chunk of spending—over $115 billion—has been devoted to roads, bridges and major infrastructure projects, reflecting long-standing national needs. Meanwhile, nearly $23 billion has gone to water-related infrastructure and $53 billion to core infrastructure, including clean energy, power and broadband.

These numbers have changed based on recent appropriations noted in the BIL funding status. 

Currently, the U.S. DOT’s authorized spending stands at $659.9 billion, of which $379.3 billion is allocated to highways, $116.1 billion for transit, $102.5 billion planned for rail transport, $25 billion for airport and aviation projects, $7.3 billion for water-related infrastructure, $1.3 billion for pipeline and hazardous materials safety, and $42.2 billion going toward other transportation programs that include the National Infrastructure Project Assistance “Megaprojects” program and the Rebuilding America’s Infrastructure with Sustainability and Equity Grant program. 

Strategic areas for ECs

While the BIL funds an array of projects, three categories stand out as especially relevant and profitable for electrical contractors.

1. Broadband ($64.4 billion planned): The pandemic exposed stark digital divides in the United States, and expanding broadband is now a national priority. ECs play a central role in deploying the electrical infrastructure that supports internet access, particularly in underserved rural and tribal communities. These projects are labor-intensive and offer consistent work with built-in workforce development expectations. This work involves fiber optics, network systems and digital infrastructure.

2. Clean energy and power ($74.9 billion planned): Aimed at modernizing the power grid and facilitating the transition to clean energy, this category supports new transmission infrastructure, renewable energy demonstrations, efficiency retrofits and workforce training. Projects include solar installation, smart grid integration, advanced nuclear, battery storage and clean manufacturing. 

3. Electric vehicles, buses and ferries ($18.6 billion planned): As part of a broader goal to reduce emissions, the federal government plans to build out a network of 500,000 EV chargers. Funds are distributed to states through the National Electric Vehicle Infrastructure program and other initiatives such as electric school buses and ferry systems. Although EV investments make up a small portion of the BIL, their ripple effects on the electrical and manufacturing sectors are expected to be substantial. This work also includes battery storage and electrification of public transit.

Contractor sentiment and market readiness

Cautious optimism emerged through a survey of 54 electrical contractors and interviews with six business leaders. Most respondents see EV infrastructure and electrification as key growth areas. However, they also voiced concerns over workforce shortages, complex bidding environments and slow rollout of federal projects.

Key takeaways from survey results include:

75% of contractors view EV-related work as the top opportunity.

41% are optimistic about the BIL’s overall impact.

22% remain skeptical, citing bureaucracy, inflation or inefficient spending.

Contractors emphasized that success in new markets hinges on designating a champion within the company—someone with the skills, passion and experience to lead new initiatives. Other factors such as market size, strategic fit and startup costs influence decision-making.

Training, labor and partnerships

The ELECTRI report identifies labor shortages and workforce aging as the most pressing threats to the industry. Respondents noted that unless more is done to recruit young talent into skilled trades, the workforce gap could grow critically over the next decade.

In response, ECs are calling for expanded training in EV infrastructure, renewable energy and advanced construction methods (e.g., off-site fabrication, modular construction and digital tools).

Key partnerships were also identified as essential for growth:

• Strong client and GC relationships
• Collaborations with OEMs, trade organizations and technology companies are valuable as construction projects become more complex and data-driven.
• Partnerships with government agencies and educational institutions were seen as less critical, but still relevant.

Opportunities and threats

The report categorizes opportunities into three buckets:

1. Electrification/EVs including EV charger installations, battery storage and recycling facilities, utility grid upgrades, microgrids and smart grid construction
2. Public works including transportation hubs (airports, bus lanes, rail), water and wastewater treatment systems, and energy efficiency retrofits in public buildings
3. Other sectors including data centers, computer chip manufacturing facilities, internet of things infrastructure, building automation and healthcare facilities

By contrast, key threats include persistent skilled labor shortages, supply chain disruptions, rising labor costs, inflation, complex government regulations and slower public bidding processes.

If an EC wants to get involved in infrastructure projects, Grasby recommends “reaching out to a trusted partner as soon as possible. Your distribution partner can help you understand and navigate the financing options available, as well as any stipulations or requirements that might be tied to that funding.” 

He also noted that federal funding for infrastructure tends to be allocated to specific phases of a project, so “it’s important for contractors to understand which phases may or may not have federal funding opportunities available.” 

ECs should additionally be aware of specific provisions tied to funding.

To help minimize supply chain challenges, Grasby advises “understanding what materials are needed and when. Partners that have national scale and a local presence can help ensure that materials arrive on the job site at the right time, even if that site happens to be in a remote location. And by bringing your partner into the conversation early, contractors can make sure that products with long lead times don’t impact completion times.”

He also noted that some ECs are getting creative with contract models to address pricing volatility. 

“Given the price uncertainties on certain materials, some contractors are tying product prices to commodity prices to reduce risk. In this contract model, material prices are quoted based on the current market, but if that price changes by a predefined amount, the contract can be adjusted,” Grasby said.

Looking ahead, the report warns that increased use of artificial intelligence, modular construction and prefabrication could lower the barriers to entry, enabling nonspecialists to perform electrical work and potentially eroding market share for ECs.

Interview insights

Follow-up interviews with EC executives revealed several recurring insights and practical lessons for navigating new markets that underscore the importance of strategic planning and adaptability.

• Leverage the “spider effect”—use existing relationships to expand influence.
• Align new ventures with core competencies and have a clear exit strategy.
• Ensure the right team is in place and incentivized.
• Understand local labor laws.

The road ahead

The BIL presents a once-in-a-generation opportunity for the electrical contracting industry. The true impact will depend on how well businesses, especially small to midsized contractors, can adapt. 

“Electrical work is essential for the success of infrastructure projects, powering everything from lighting and appliances to complex machinery and communication networks,” Grasby said.

However, success is not guaranteed. Contractors must stay informed about funding opportunities at the national and local levels, invest in workforce development and training, build strategic partnerships, navigate complex public bidding processes, and embrace innovation and digital transformation. 

Companies that align with emerging trends, invest in talent and embrace collaboration will be best equipped to lead in this new era.

However, with the current political landscape, policies and priorities are shifting, which might redirect resources away from some or all of these initial areas that were positioned for growth. So, electrical contractors must remain consciously aware of the changes happening in real time. 

The electrical contracting industry sits at the crossroads of transformation. By embracing change, investing in workforce development, and cultivating the right partnerships, ECs can secure a central role in shaping the country’s infrastructure for the next century.

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