Who would gain from Trump’s border wall?
Contractors, suppliers eager; US taxpayers, critics not so much
LOS ANGELES - As a billionaire developer, Donald Trump built casinos, luxury condo towers and lush golf courses. Now, as president, Trump aims to develop perhaps his most ambitious and surely his most contentious project yet: a wall along the nearly 2,000-mile U.S.-Mexico border.
How? At what cost? And who would benefit?
Experts say the project, if built, could deliver a windfall for some large construction companies and their suppliers. Engineering and infrastructure companies that have worked on previous government projects could capture a chunk of the multibillion-dollar work. Among them are Kiewit and Flour Enterprises. Subsidiaries of both have signed up as interested vendors.
But the project would likely also be stymied by the struggles that have beset the industry in recent years, notably a shortage of skilled labor and rising materials costs.
Here’s what’s known and not known about the potential effects on U.S. construction companies and workers: » Which companies would likely work on the wall?
The government has laid out plans to hire contractors for design and construction. Some smaller businesses would serve as subcontractors. One factor the government is to consider in choosing contractors is their track record in hiring small businesses as subcontractors and making significant use of them. The Customs and Border Protection agency has set a goal of having 38 percent of subcontracts go to small businesses. » What kinds of jobs are we talking about?
Along with engineering and design work, the project would require numerous construction and heavy machinery operators. Among the jobs: truck drivers to ferry materials, crane operators, concrete workers, digging-equipment operators, site supervisors and general laborers. Any employees who work on-site would have to pass an immigration and criminal-history check. » How long might it take to build?
Unclear. For now, the government’s contract solicitations are intended only to assess prototype designs for the wall and to build some segments of the structure. In addition, acquiring land from private owners that would be needed to build the wall would likely add delays. » What benefits might the wall deliver for the U.S. construction industry?
Given the estimated cost — somewhere between $8 billion and roughly $20 billion — the project would represent just a thin slice of overall U.S. construction spending. Spending last year on public construction totaled $286 billion. And that was just a quarter of overall construction spending, which includes residential and commercial developments. » How much would the project cost?
Unclear. Trump has suggested the project would cost $12 billion. Congressional Republicans have estimated it could go as high as $15 billion. » Any other potential hurdles?
The Trump administration appears to be bracing for a fight with private landowners over the government’s likely use of eminent domain. Under eminent domain, the government can, under some circumstances, order landowners to accept buyouts for their property to make way for the fence. The administration’s recently proposed budget includes money to hire 20 lawyers to work on land acquisition.