The Mid-Atlantic and Southeast regions are experiencing rapid economic and population growth, necessitating major infrastructure investments to support expanding industries. Maryland, North Carolina, South Carolina, Virginia, and West Virginia are directing significant resources toward modernizing transportation networks, improving utility systems, and enhancing logistics infrastructure.
Over the past three years, these five states have collectively invested over $191 billion in transportation and infrastructure projects, significantly impacting the construction and transportation industries. Increased investment is fueling demand for skilled labor, construction materials, and engineering expertise, while also putting pressure on supply chains and regulatory processes.
Maryland’s infrastructure spending is driven by its strategic location as a logistics and commerce hub, with major investments supporting its ports, highways, and transit networks. The state’s economy is anchored by government contracting, biotechnology, and cybersecurity, all of which benefit from improved infrastructure.
While Maryland’s population continues to grow, the number of licensed drivers has decreased from a peak of 4.5 million in 2019. Maryland also has one of the highest rates of employees working from home, which contributes to lower vehicle miles traveled per capita and lower rates of driving alone to work since 2020.
As fewer Marylanders hold a driver’s license, the Maryland Department of Transportation (MDOT) needs to provide more mobility options for them. As commuting patterns shift, Maryland’s public transit needs to evolve.
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MDOT’s operating costs are expected to increase 7 percent annually while revenues increase 1 percent per year, which will put a lot of pressure on the state to meet infrastructure demand within budget.
- I-95 Express Toll Lanes Northbound Extension: A $199 million investment aims to alleviate congestion and improve travel times on one of America’s busiest highways.
- MD 4 at Suitland Parkway Interchange: A $283 million project with a $156.6 million investment in 2024 enhances roadway safety with a new diamond interchange.
- Howard Street Tunnel Expansion: This project is part of a $466 million rail program for improving freight efficiency and port competitiveness between Baltimore, Maryland, and Philadelphia, Pennsylvania.
Maryland has a diverse group of contractors bidding on state projects. When looking at the contractors’ winning projects over the last three years, the top 20 contractors have won the majority of jobs (64 percent). The difference between first- and second-place bidders averages 14 percent.
North Carolina’s investments in transportation and urban development are strengthening the construction sector while requiring new strategies for workforce expansion and material sourcing. The state’s growing tech and finance industries also rely on modernized infrastructure for continued growth. North Carolina’s ports of Morehead City and Wilmington are two of the 17 strategic ports in the United States, capable of simultaneously handling commercial and military requirements.
As with the other states, North Carolina is seeing the cost of doing business increasing at an alarming rate while revenue declines due to its dependency on the motor fuels tax, which is steadily decreasing as more vehicles become fuel-efficient or electric altogether.
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- I-95 Expansion: Multiple projects are underway in Robeson, Cumberland, Harnett, and Johnston counties to widen the interstate, replace outdated bridges and interchanges, and incorporate improvements to make the highway more resilient against floodwaters.
- NC-150 Widening: A $249 million project is focused on modernizing transportation corridors and boosting regional connectivity.
- Gateway Terminal Improvements: A $50 million initiative is enhancing the Port of Wilmington’s capacity for global trade.
North Carolina’s 20 winningest contractors over the last three years account for 66 percent of DOT project awards. The difference between first- and second-place bidders averages just 5 percent.
South Carolina’s infrastructure boom is driving growth in construction, engineering, and logistics, but supply chain constraints and high competition for materials remain challenges. The state’s automotive and manufacturing industries, including major employers like BMW and Boeing, depend on continued investment.
To combat South Carolina’s expected population growth of an additional 31 percent by 2040, the state diversified the South Carolina Department of Transportation’s revenue stream in 2017 so that it is not over-reliant on federal funds. This has allowed South Carolina to fully capture available IIJA funds and dramatically increase the amount of construction.
- I-26 Corridor Improvement: A $439.3 million upgrade is improving freight movement and urban development.
- I-26 and U.S. 176 Interchange: A $180 million project is enhancing highway access and supporting regional commerce.
- Charleston Harbor Deepening: A $580 million initiative is strengthening port competitiveness for international trade.
A majority (89 percent) of infrastructure projects awarded in South Carolina are going to the top 20 contractors in the state. The difference between first- and second-place bidders averages just 5 percent.
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Virginia’s infrastructure investments are supporting both urban expansion and rural development, though regulatory hurdles and labor constraints affect project timelines. As home to the federal government, the defense industry, and a growing technology sector, Virginia’s economy is directly influenced by infrastructure modernization.
Virginia’s DOT budget is expected to increase by 2.3 percent in 2025 over 2024.
- I-64 Hampton Roads Express Lanes: A $110 million expansion is integrating smart tolling systems and traffic management solutions.
- Berkley Bridge System Replacement: A $78 million project requires specialized expertise in bridge engineering and materials science.
- Long Bridge Expansion: A $2.3 billion rail infrastructure investment is improving passenger and freight mobility.
Virginia’s high-value and high-profile projects lead to a larger variety of contractors bidding on projects. The 20 contractors with the highest project awards in the last three years account for 64 percent of the project awards. The difference between first- and second-place bidders averages 15 percent.
West Virginia’s infrastructure renewal is essential for economic diversification, but geographic challenges and an aging workforce complicate large-scale development efforts. The state is investing in transportation, broadband, and energy projects to attract new industries and reduce reliance on coal.
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West Virginia is wrapping up its Roads to Prosperity program, a seven-year program aimed at catching up on years of underinvestment. While that infusion of revenue enabled the agency to commence work on a number of backlogged projects, the lack of any continued growth will make it difficult for West Virginia to continue moving forward with needed projects. The lagging revenue growth will be exacerbated when the impact of inflation on purchasing power is taken into account.
- I-70 Bridges Rehabilitation: A $147 million initiative will rehabilitate the Fort Henry Bridge, along with 25 others requiring updates.
- King Coal Highway Beckley Z-Way: A $92 million project is improving regional transportation networks and attracting industrial investment.
- Statewide Broadband Expansion: A $1.2 billion effort will increase digital connectivity in rural areas.
West Virginia’s DOT project awards over the last three years are primarily spread among the top 20 contractors, with the difference between first- and second-place bidders averaging just 5 percent.
Infrastructure investments in the Mid-Atlantic and Southeast are critical to sustaining economic growth and industry expansion. While these projects offer new business opportunities, they also present challenges related to labor shortages, regulatory complexities, and material availability. Addressing these issues through workforce development, supply chain resilience, and technological innovation will be key to ensuring the long-term benefits of infrastructure spending in the region.
Editor’s Note: Graphics are based on analysis of data from state department of transportation project awards.
