The North American construction industry is in the midst of a transformative period, with megaprojects valued at over $1 billion driving the sector’s growth. These large-scale endeavors, including airport expansions and advanced manufacturing facilities, are tackling urgent infrastructure challenges while serving as economic catalysts. Fueled by federal investments and a rebound in global travel, these projects highlight the industry’s adaptability and innovation.
Federal funding has been a cornerstone of this surge, with the Bipartisan Infrastructure Law (BIL) serving as a key driver. Signed in 2021, this law allocated $550 billion in federal funding over five years, including $25 billion specifically for aviation projects. “Our airports have long been overdue for modernization, and these investments are a game-changer,” noted Steve Dixon, a former FAA administrator, during a 2023 panel discussion on infrastructure investment. The Federal Aviation Administration’s (FAA) Airport Improvement Program (AIP) has further amplified this impact, disbursing more than $1 billion in 2023 to enhance airport safety and capacity.
These investments come at a critical time for the aviation industry. Global passenger travel is expected to exceed 9.4 billion annually by 2024, surpassing pre-pandemic levels. This surge has exposed the limitations of aging airport infrastructure, with many U.S. facilities over 40 years old. Denver International Airport is currently undergoing a $1.3 billion expansion to add 39 gates, enhancing capacity for domestic and international flights. Meanwhile, Los Angeles International Airport (LAX) is in the midst of a $15 billion modernization initiative that includes an automated people mover and extensive terminal upgrades. “These projects aren’t just about keeping up with demand—they’re about creating an experience that matches modern passenger expectations,” explained Karen Bass, mayor of Los Angeles, at a recent industry event.
“These projects aren’t just about keeping up with demand—they’re about creating an experience that matches modern passenger expectations.”
Advanced manufacturing facilities are another area where megaprojects are reshaping the industry. The COVID-19 pandemic revealed critical weaknesses in global supply chains, prompting a wave of onshoring initiatives. The CHIPS and Science Act of 2022 has been instrumental in this shift, allocating $52 billion to bolster domestic semiconductor production. This funding has led to a 156% increase in manufacturing construction starts compared to 2019. Notable among these efforts is Intel’s $20 billion semiconductor facility in Ohio, expected to create 7,000 construction jobs. “This is more than just a factory; it’s a blueprint for how we can rebuild America’s industrial base,” remarked Pat Gelsinger, CEO of Intel, during the facility’s groundbreaking ceremony.
Clean energy manufacturing is also experiencing unprecedented growth, driven by the push for sustainability. Companies like PCL Construction have played a pivotal role in this sector, having completed 60 solar projects and secured $1 billion in new contracts in 2023. These facilities not only advance renewable energy goals but also contribute to economic resilience. “Every solar field we build is a step toward energy independence,” said Deron Brown, COO of PCL Construction’s Solar Division, in a recent interview.
Despite these successes, challenges remain. Rising material costs and labor shortages have created hurdles for many projects. The Associated General Contractors of America (AGC) reported that 82% of firms experienced higher material costs in 2023 compared to pre-pandemic levels. Inflation has driven up prices for essential materials such as steel and concrete, forcing developers to adopt innovative strategies. Building Information Modeling (BIM) is becoming a vital tool, improving efficiency and reducing waste. Labor shortages add another layer of complexity, with 66% of firms planning to hire in 2024 to meet demand. Partnerships with educational institutions and robust apprenticeship programs are helping bridge this gap, but the competition for skilled workers remains intense.
Sustainability is increasingly integral to megaproject planning. Airports like Denver and LAX are incorporating energy-efficient systems and renewable energy sources, while manufacturing plants emphasize green practices such as reduced emissions and waste recycling. “Sustainability isn’t an option—it’s a responsibility,” said Pete Buttigieg, U.S. Secretary of Transportation, during a recent infrastructure summit. These efforts align with broader environmental goals, enhancing the long-term viability of these projects.
The community impact of these projects extends beyond their immediate economic benefits. Manufacturing plants generate high-paying jobs and boost local economies, while airport expansions improve regional connectivity. These developments are particularly significant in underserved areas, where they create opportunities for economic revitalization. “When you invest in infrastructure, you invest in people and their future,” said Gina Raimondo, U.S. Secretary of Commerce, in a statement highlighting the economic ripple effects of the CHIPS Act.
The outlook for megaprojects is overwhelmingly positive, with federal investments, technological advancements, and sustainability driving momentum. These projects are not only addressing critical infrastructure needs but also positioning North America as a leader in construction innovation. From airports to advanced manufacturing facilities, megaprojects represent a transformative vision for the industry, showcasing its resilience and adaptability in an era of rapid change.
The rise of megaprojects is reshaping North American construction, delivering solutions to pressing challenges while fostering innovation. Backed by federal funding and a commitment to sustainability, these initiatives are creating a legacy of progress that will resonate for generations. As the industry navigates the complexities of cost pressures and labor shortages, it remains poised to deliver infrastructure that meets the demands of a connected, sustainable future.
