Small Businesses Get the Job Done

APRIL RAI
President & CEO
Conference of Minority Transportation Officials (COMTO)

Small, minority, and women-owned businesses are the backbone of our economy, driving progress and innovation in key sectors like transportation. With the passage of the Bipartisan Infrastructure Law (BIL) and the historic investments made under the Infrastructure Investment and Jobs Act (IIJA), the need for a highly skilled workforce and a diverse pool of contractors has never been more critical. These landmark initiatives will fund billions of dollars in transportation and infrastructure projects, transforming communities and improving the way Americans travel, work, and live. However, without sufficient workforce capacity and the inclusion of minority- and women-owned businesses, project delivery—and the communities they aim to uplift—are at risk.

The transportation industry is facing a dual challenge: a shortage of skilled workers, and difficulty in recruiting and retaining talent across associated disciplines. Post-pandemic, the sector saw record retirements and now contends with fierce competition from adjacent industries for the remaining talent pool. According to the U.S. Bureau of Labor Statistics and USDOT, 50 percent of the current transportation workforce is set to retire within the next decade. This looming labor-shortage crisis could undermine the timely completion of infrastructure projects meant to modernize our nation’s roads, bridges, and public transit systems.

In this environment, the need to support and promote small businesses—particularly minority and women-owned firms—becomes even more urgent. These businesses are not just contractors, they are key partners in delivering infrastructure projects that are vital to the nation’s economic recovery. Small, minority, and women-owned businesses contribute significantly to building strong neighborhoods and thriving communities. They bring unique insights, a deep commitment to the people they serve, and an ability to adapt and innovate in ways that larger firms often cannot. Their participation is essential to completing the projects funded by IIJA on time and within budget.

Small businesses contribute to strong neighborhoods and cities with a substantial portion of revenue directly supporting the local economy, creating a multiplier effect. On average, around 67 cents of every dollar spent at a small business stays within the local community, compared to about 40 cents per dollar for non-local businesses. This difference is because small businesses are more likely to source locally, pay local taxes, and invest in local services, including their workforce.

Recent legal decisions have put a pause on programs that provide support for the participation of these critical businesses. In September, U.S. District Judge Gregory F. Van Tatenhove issued a preliminary injunction on DOT’s Disadvantaged Business Enterprise (DBE) programs in Kentucky and Indiana. Judge Tatenhove ruled that while the federal initiative was well-intentioned, it violated the constitution’s equal protection clause. The DBE program, established in 1983 to combat ongoing discrimination, guarantees at least 10 percent of federal contracts go to disadvantaged businesses.

The Conference of Minority Transportation Officials (COMTO) believes that the participation of small, minority, and women-owned businesses is critical to project delivery for the once-in-a-generation investments to transportation and infrastructure. Leveraging a diverse pool of contractors fosters innovation, ensures a broad range of perspectives, and creates economic opportunities for historically under-resourced communities. Without these partners, we risk stifling the very progress that these historic infrastructure investments are intended to generate.

COMTO, along with our forty chapters across North America, remain steadfast in our support of small, minority, and women-owned businesses. We are committed to working with state agencies, policymakers, and industry leaders to ensure that procurement diversity remains a cornerstone of transportation and infrastructure projects. It’s not just about fairness, it’s about ensuring that we have the workforce and business capacity to deliver on the promises of the IIJA. By supporting small businesses, we can build stronger, more resilient communities and create lasting economic opportunities for all. Simply put, small businesses get the job done.