As the backbone of so much in America – from real estate to infrastructure and industrial projects – construction workers have long been key in keeping this economy moving. Yet in recent years, higher education aspirations and a retiring workforce has cut into their numbers.

The result has made it difficult to complete projects in a costly manner.

It’s never been exactly easy to find skilled craftsmen, contractors, or crew in this industry. But now we’re beginning to find ourselves looking at a national crisis.

The economic recovery from Covid-19 still has many workers holding out for top wages. On top of that, some construction companies simply cannot hire more hands due to increased costs on fuel and raw materials. And on top of that, the industry is facing its biggest challenge yet – competition from government projects.

Under the Build Back Better agenda, Congress passed a $1.2 trillion Infrastructure Investment and Jobs Act in November. This bill includes $110 billion allocated to roads, bridges, and other major projects, plus:

• $39 billion for railways
• $73 billion for power infrastructure
• $65 billion in broadband development.

Many of the details, contracts and allocation terms were still being worked out until recently. But this funding is officially starting to impact the industry as the summer begins.

Now, private construction companies working on homes, retail, and commercial spaces must compete for labor against the deep pockets of the government. Moreover, more projects mean workers will be stretched out even thinner.

Of course, the exact implications of this situation are hard to determine. This will take a toll on many private real estate and development companies. Meanwhile, many more will be contracted for big bucks to complete projects like increased broadband coverage and green energy engineering.

My hope is that those in the real estate investment (REIT) world will benefit, however… even as this new influx of competition changes the way growth, acquisitions, and expansion play out until our labor scarcity subsides.

More Non-REIT News to Know About 

Ernst & Young, one of America’s oldest and most renowned accounting giants, is planning to break its business up.

Why does that matter to us, considering how it’s not publicly traded? Let me provide a few more details.

This move – which involves separating the auditing arm from its fast-growing consulting counterpart – would not only make it easier for the firm to handle its biggest accounting clients like Amazon (AMZN)…

It will also give thousands of its partners multi-million-dollar payouts.

An internal research document shows that EY believes both sides will be better off going their own ways. They can operate more efficiently and effectively on their own – while handling big-name accounts and growing their expertise to tackle technology issues outside of common tax code.

“We need to be decisive… to control the destiny of our businesses and not have it defined for us by external forces,” the firm said in an internal EY document. “Our businesses are strong, but there are obstacles holding us back from achieving our full potential.”

This split, named Project Everest, would divide the 312,000-person firm as soon as end-of-year 2023. Under the current proposal, the consulting side would go public, looking to sell a 15% stake of the company for over than $10 billion, while borrowing $17 billion.

I find this all fascinating: the latest development in a post-Covid economy that’s made businesses of all sizes – in all industries all over the world – rethink how to handle this new reality we’re all a part of.

The World According to REITs 

Today, I’m highlighting American Tower (AMT) again. It’s one of the world’s largest REITs and the leading independent owner, operator, and developer of multitenant communications real estate.

Its portfolio of approximately 221,000 communications sites essentially carries the wireless infrastructure of America and Canada.

With a quarterly cash dividend of $1.43 and a share price just north of $235, it’s definitely on my radar. But what I really love about AMT is the amount of diversity it adds to any portfolio.

Traditionally, REITs are situated in the real estate, retail, and commercial sectors. With recession fears more present, American Tower offers persistent income in an area we already know will be funded to the tune of $65 billion through Biden’s Infrastructure Investment and Jobs Act.

Diversifying your portfolio in the face of this crazy economy is one way we investors can keep our portfolios padded against the uncertainties of this economy. American Tower is a great example of getting creative in the face of a strange climate.

It might not always be affordable, but that’s what market dips like Friday’s tanking are all about!