The latest figures from the U.S. Department of Commerce are in and they show billions in new opportunities for contractors. CapStream can help you access these opportunities.
The chart to the below shows the numbers.
While most of the spending occurs in the private sector, the public sector is growing faster, nearly 17% from year ago figures, twice the rate of private spending. On an absolute basis the change was $70 billion. And there is another important feature of public construction spending: these contracts have set asides for disadvantaged business enterprises or DBEs.
That’s a lot of opportunity!
And while $70 billion in new opportunities featuring set-asides is compelling, we know these numbers don’t tell the full story. The sad fact is DBEs don’t always get their slice of the pie.
For example, a study by think tank Third Way that analyzed minority participation in total federal contracting – not just construction – identified significant under-participation relative to the number of minority-owned construction companies. The group’s 2022 study found that of $560 billion in federal contracts, minority-owned enterprises won just 14% of the total dollars, despite the fact that among U.S. businesses, 21% are owned by women and 19% are owned by minorities.
One reason for this under participation is systemic barriers, notably access to surety bonding and financing. But this is where CapStream can help. We are a one-stop-shop for construction contractors to obtain both project surety bonding and mobilization funding through a single, streamlined application process. CapStream’s platform is specially designed to assist diverse and emerging contractors.
Get started getting in on the boom in construction spending. Give us a call at (646)442-1040 or complete our short form(click here) and a member of the team will get back to you.
Sources:
CapStream Blog 