Though the end of 2020 is officially here, it may be hard for some of us to feel any definitive sense of closure going into 2021. We all know COVID-19 still has a strong hold across the nation, and, despite the rollout of new vaccines, the unfortunate truth, at least for now, is that continued construction closures and delays are likely on the horizon.
Adding to this uncertainty, with this particular new year comes a new president — and with him a new administration, a new list of policies and a new set of questions for contractors. Two of the most pressing being
- the likelihood president-elect Joe Biden will hold to his tax reform promises, including the proposed increase in the corporate income tax rate from 21% to 28%, and
- whether his multi-trillion-dollar infrastructure bill, slated to create millions of jobs in infrastructure, housing, building construction and other projects, will pass with an upcoming stimulus bill or not.
For question two at least, it seems the overall sentiment is positive. Despite the divide in Congress, both parties appear to be in agreement on the pressing need for updated infrastructure, which will give a much needed boost to the industry.
And there’s more good news.
While 2021 will likely not start as strong as many of us would like, the second half of the year seems prime to make up for it. “Once vaccinations become broadly available, the global economy is likely to gallop forward,” said ABC Chief Economist Anirban Basu in a recent report. As things begin to stabilize, not only will new projects begin, but delayed projects will restart, creating a significant amount of new jobs — it’s just a matter of time.
So make sure you’re keeping track of where your business stands. Speak to your advisers, your CPA, your surety, your banker — check your cash preservation and the viability of running projects moving into 2021.
It may take us a bit to get there, but we’re a resilient industry and we’ll get through this, as always.