A CRE Vendor's Guide to Infrastructure: 8 Market Segments Worth Knowing

Infrastructure is one of the largest and most stable markets in the U.S., and it’s one that many CRE vendors either overlook entirely or treat as a single category. It isn't. Transportation, energy, water, communications, and several other segments each have their own buyers, decision-makers, and vendor needs.

The Global Infrastructure Hub estimates that 1.6% of the U.S. GDP is invested in infrastructure, with the largest shares going to:

• Transportation

• Water

• Communications

• Energy storage/distribution

For a mid-size vendor or subcontractor, that translates to a significant addressable market, one with both government-funded and privately contracted opportunities. This post focuses on hard infrastructure: the physical systems that communities depend on to function such as roads, bridges, energy grids, water systems, and more. Soft infrastructure (schools, healthcare, law enforcement) is outside our scope here.

8 Types of Infrastructure 

Each infrastructure type below represents a market segment where CRE vendors may find business opportunities. For each, we cover what the infrastructure involves, which vendor types are most relevant, and the specific roles worth targeting for outreach. 

Bridge infrastructure

Bridges are categorized under transportation infrastructure. They’re key parts of U.S. roadways that cross bodies of water, ravines, and other roads. Bridge infrastructure requires (source: Federal Highway Administration):

• Structural engineering (including concrete, steel, and timber, for example)

• Hydraulic expertise (especially for bridges over water, but also to manage rainwater)

• Geotechnical engineering (accounting for foundations, slopes, soil materials, and the climate)

• Safety inspection (load ratings, tunnel and bridge safety)

Federal, state and local governments typically oversee the ownership and funding of bridges, depending on jurisdiction. They delegate planning to heavy/civil engineering firms that design, develop, and construct the bridges. The government is the client, and since it’s public funds, it’s in the interest of the local civil engineering firm to present the most efficient (and safest) construction plan for the bridge. For a third-party vendor, the heavy or civil engineering firm is the key contact. Look for individuals with the following job roles: project manager, roadway engineer, civil engineer, planning engineer, bridge engineer.

The primary responsibility of some of these roles will be bridge design and analysis, but their responsibilities can also include planning and drafting construction plans. A project manager may be the most relevant contact as they make sure projects stay within the budget. 

Communications and data infrastructure 

Data and communication infrastructure represent a growing segment, as investors take a greater interest in data storage, processing, and digital communication. From cell towers to massive data centers, communications and data infrastructure depend on specialized hardware — and the vendors who supply, install, and maintain it. 

Data infrastructure includes (source: Hewlett-Packard glossary): 

• Data centers (learn more about the types of data centers and the trades behind them)

• Cloud storage facilities (hosted within data centers)

• Physical hardware (server racks, internal processing components, computer storage hardware)

Communications infrastructure includes:

• Wired connections and networks (fiber, Ethernet, etc.)

• Wireless infrastructure (cell towers, 5G centers, etc.)

• Low-Earth orbit satellites 

Data and communications infrastructure covers different fields, so there are many trades involved in construction, design, maintenance and operations. Unlike government-funded infrastructure, data and communications projects are often privately contracted — meaning developers, operators, and general contractors make their own vendor decisions and are your most direct contacts.

Energy or power infrastructure

Energy and power infrastructure is essential for delivering electricity and fuel to homes and commercial properties. Of special importance to modern energy infrastructure is energy efficiency and green sourcing of power from renewable energy sources like wind or solar.

Energy and power infrastructure includes:

• Power plants (coal, natural gas, or nuclear)

• Dams, hydroelectric facilities

• Wind farms

• Solar farms

• Power lines, transformers, and substations

• Distribution lines (to homes and businesses)

Government institutions like the Federal Energy Regulatory Commission (FERC) oversee transmission and the price of electricity, while the U.S. Department of Energy (DOE) administers energy policy, infrastructure, and the power grid. For vendors, generation, transmission, and distribution are managed by private and public corporations. You’ll want to find asset managers, on-site managers, operators, and directors (for larger jobs). 

Recreational infrastructure

Recreational infrastructure comprises the amenities that a city or community maintains as part of its community spaces. The goals include making an area more attractive to live and do business in, as well as supporting tourism to the area. Examples of recreational infrastructure include:

• Public sports complexes (tennis courts, basketball hoops, skate parks)

• Parks and playgrounds

• Hiking and wilderness trails

• Historical and cultural sites, public amphitheaters, community centers

The authorities that manage recreational infrastructure differ based on where the infrastructure is located and how it’s classified. Playgrounds for multi-family housing may be funded by a developer or property manager and later managed by an HOA. A national park, on the other hand, is managed by the National Park Service. A public trail or forest may be managed by the U.S. Forest Service or a state’s or county’s park service. For recreational infrastructure managed by state, local or federal governments, civil engineers and project managers typically bid for contracts and work with vendors to stay within budget. 

Transportation infrastructure 

Transportation infrastructure covers the roads, structures, bridges, and even airports or seaports. The U.S. Department of Transportation sets federal policy and helps fund highway programs, while state and local governments own and manage most bridges and roads. Airports and seaports are managed, developed, and improved by regional and state authorities. Some examples of transportation infrastructure include:

• Roads (interstate highways, freeways, toll roads, surface streets)

• Airports (but not aircraft)

• Seaports (cargo/commercial, cruise lines, commercial fishing)

• Railroads (managed by private corporations but regulated by the federal government)

Government-owned transportation infrastructure operates on fixed improvement and upkeep budgets that contractors and engineers must design and bid within. For CRE vendors, the best contacts are the civil engineers, project managers, and contractors who win these government contracts — they are the ones sourcing materials, equipment, and specialized services. 

Waste & environmental 

Waste infrastructure includes household waste, recycling, and hazardous material disposal. Waste management sits at the intersection of local governments that set the waste disposal standards and the private companies that handle collection, sorting, and disposal. 

Waste disposal is technically a form of environmental infrastructure called “grey” infrastructure. (Contrast it with “green” infrastructure, which is related to the environment, like stormwater management, coastal infrastructure, and public trees and vegetation.) 

This is a very broad category that can cover privately managed infrastructure (such as trash collection) or state-government-managed infrastructure (like stormwater management, urban forests and bioswales). Because of this intersection, both government agencies and private operators contract with vendors that handle vehicle maintenance, landscaping, property improvement, and construction. Plant managers, project managers, civil engineers, or operators will all be involved in picking third-party vendors. 

Water and stormwater

Water infrastructure encompasses all infrastructure related to drinking water distribution and treatment, as well as wastewater and stormwater management, a slight overlap with the previous section on waste and environmental infrastructure. Water infrastructure is managed by a range of public and quasi-public entities, including municipal governments, county water districts, regional water authorities, and special districts. These local governing bodies own and operate:

• Water treatment plants

• Sewer systems

• Pumping stations

• Water storage

• Stormwater drainage systems

While primarily funded through ratepayer fees and public bonds, these governing bodies regularly outsource specialized work to vendors. Vendors that handle construction, improvement, filtration systems, and engineering, for example, may find work with water and stormwater infrastructure. Look for utility operators, water resources engineers or specialists, or plant operators.

Parking and paved areas

Parking lots, paved areas, and parking structures are found on privately owned commercial properties as well as publicly owned spaces managed by city or county governments. This creates vendor opportunities across three distinct areas:

• Paving and construction: construction, maintenance, and repair work is contracted out to paving and asphalt companies that handle preparation, layering, repair, and resurfacing. Concrete, asphalt, and paint providers may also find business with paving companies that hold government contracts. Note that bidding on state or municipal contracts may require specific licensing depending on the jurisdiction.

• Parking management and operations: private parking management companies operate both commercial lots and municipally contracted parking facilities. Vendors selling payment systems, ticketing technology, access control equipment, or signage will find these firms are their most direct contacts.

• Security: parking structures and lots represent a significant security market. Camera systems, lighting, access control, and security personnel are all regularly contracted by both private operators and municipal parking authorities.

For paving and construction, target project managers and vice presidents at paving firms. For parking management and security, look for operations managers, facility managers, and directors of security at parking management companies and municipal parking authorities.

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