Dive Brief:

• Contractors whose business is largely in highway and bridge construction have been facing shrinking profit margins – about 2% last year – while other contractors and home builders have seen their margins rising in recent years.
• Those contractors' gross profit margins have been declining, going from approximately 16% in 2006 to about 7% in 2013, Sageworks determined from companies' financial statements.
• The analysts concluded that the shrinking profitability is attributable to declining sales growth.

Dive Insight:

That dismal news comes as transportation contractors wait to see if a Congress that has not enjoyed a reputation for getting things done can find its way to rescuing the National Highway Trust Fund. There is no money now for any new projects after the end of this federal fiscal year on Sept. 30 at best, and perhaps earlier.