What Organizations Should Be Thinking About After Biden’s Bipartisan Infrastructure Bill
Risk or Opportunity?
After months of negotiation, President Joe Biden has signed a Bipartisan Infrastructure Bill into law, bringing a once-in-a-generation investment of $1.2 trillion dollars into the economy. Funding will be distributed over the next five years and will bring funding, higher paying jobs, and critical development initiatives into America’s economic growth.
The bill will not only help build what is necessary for our current economy, but it will bring long-term benefits for years to come.
Several underinvested industries will be receiving funding, including:
Utility infrastructure - $73 billion
Passenger and freight transportation - $66 billion
Public transportation - $39 billion
Electric vehicles - $15 billion
The approved funding will bring both an opportunity for growth and an increase in the demand for supplies & labor. The world has already seen delays and lags in the production and shipment of building materials due to COVID-19, and now with the approval of investment, many organizations will be forced to expand their procurement and take on additional risk by working with new suppliers. Not surprisingly, many organizations are also experiencing a labor shortage or inability to retain talent, causing even more delays in production.
Organizations looking to take advantage of the funding into their industries can help mitigate some of this risk through credit insurance. For example, when interacting with new vendors, there’s always a risk of non-payment, or even new payment terms that can detract from an organization’s cash flow. Taking out credit insurance on your new vendors can help you expand your business and minimize the risk of the vendor going bankrupt or refusing payment.
Another example of how credit insurance can support organizations receiving investment is by taking out credit insurance on labor. Enhanced unemployment has delayed millions of Americans returning to the job market, meaning that organizations may begin to turn to other sources to obtain laborers. Temporary labor and staffing agencies typically pay their laborers on a weekly basis, but the organizations they contract with may be subject to net 30, 60, or even 90. By taking out credit insurance on a new partner, staffing agencies can continue to pay their laborers weekly with confidence that they’ll get paid from new customers -- and if not, their credit insurance can help recoup those lost funds.
As the country gears up for the largest infrastructure bill of the decade, it’s time to get ahead of the impending risk by learning more about Intercontinental Growth Strategies’ credit insurance. With so much opportunity on the horizon for growth, credit insurance can help you focus on maximizing your potential revenue. Contact us today to learn about our credit insurance services and how we can protect you and your business.