ASCE ENERGIZED FOR LATEST ECONOMIC STUDY
April 26th, 2012 | By: America's Infrastructure Report Card
ASCE has released the latest report in the Failure to Act economic study series today – Failure to Act: The Economic Impact of Current Investment Trends in Electricity Infrastructure. This report assesses the nation’s aging e
nergy facilities and analyzes how accelerating investments in the nation’s transmission, generation, and distribution systems will prevent unnecessary costs to businesses and household budgets by 2020. This report follows two other economic studies that focused on the nation’s surface transportation systems and the nation’s drinking water and wastewater systems.
ASCE’s 2009 Report Card for America’s Infrastructure gave the nation’s energy system a D+. To better explain how the Report Card’s grades affect America’s economic future, ASCE has produced the Failure to Act series of economic reports focused on the real effects on our nation’s economic performance if the nation continues to under invest and defer spending on our energy grid.
This report concludes that by extending current investment trends for the nation’s energy assets through 2020, the U.S. would be investing $566 billion but that would still be $107 billion below the needed investments. To close this gap, an additional $11 billion in new funding annually is needed to decrease brownouts and blackouts and save American businesses $126 billion, prevent the loss of 529,000 jobs, and save $656 billion in personal income loss. America’s economic competitiveness would also benefit by protecting $96 billion in Gross Domestic Product (GDP) and $10 billion in revenue from U.S. exports.
ASCE held a discussion with a panel of experts this morning to release the report and discuss the energy infrastructure needs for the nation. The panel was moderated by ASCE President Andrew W. Herrmann P.E., SECB, F.ASCE, and included two former FERC Commissioners, Jim Hoecker and Curt Herbert Jr.; as well as Otto Lynch, who heads the energy section of the ASCE Report Card for America’s Infrastructure, and Samir Succar, a scientist at the Natural Resources Defense Council.
For more information on ASCE’s Failure to Act series please visit – www.asce.org/failuretoact .
Tags: economics, energy, infrastructure, infrastructure report card
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Jobs, Jobs, Jobs
March 6th, 2012 | By: America's Infrastructure Report Card
The Associated Press distributed a story yesterday claiming that a surface transportation bill would not necessarily create jobs, but instead shift investments that are already creating jobs to the transportation industry. However, money invested in essential public works can create thousands jobs across the nation, provide for economic growth, and ensure public safety. The nation’s transportation infrastructure system has an annual output of $120 billion in construction work and contributes $244 billion in total economic activity to the nation’s gross domestic product (GDP). In addition to the economic benefits, the Federal Highway Administration estimates that every $1 billion invested in the nation’s highways supports 27,823 jobs, including 9,537 on-site construction jobs, 4,324 jobs in supplier industries, and 13,962 jobs throughout the rest of the economy. While Standard and Poor’s has stated that highway investment has been shown to stimulate the economy more than any other fiscal policy, with each invested dollar in highway construction generating $1.80 toward the gross domestic product in the short term. In July 2011, ASCE released an economic study that measures the potential impacts to the economy in 2020 and 2040 if the nation maintains current levels of surface transportation investments. The study, Failure to Act: the Economic Impact of Current Investment Trends in Surface Transportation Infrastructure, found that if investments in surface transportation are not made in conjunction with significant policy reforms, families will have a lower standard of living, businesses will be paying more and producing less, and our nation will lose ground in a global economy. Furthermore, the study found that the nation’s deteriorating surface transportation will cost the American economy more than 876,000 jobs, and suppress the growth of the country’s GDP by $897 billion in 2020. The results also estimate that more than 100,900 manufacturing jobs will be lost by 2020 and that ultimately Americans will get paid less. In contrast, a study from the Alliance for American Manufacturing shows that roughly 18,000 new manufacturing jobs are created for every $1 billion in new infrastructure spending. The nation’s economic health is dependent on a strong infrastructure system. By updating, maintaining, and building our roads, bridges, and transit systems, the nation can create jobs in both the public and private sector, while fostering and growing the United States economy. Therefore, the first step toward a modernized transportation system must include passing a multi-year surface transportation authorization. With the Senate slowly working through a series of non-germane amendments to MAP-21, and the House reassessing their next steps after pulling the American Energy and Infrastructure Jobs Act, surface transportation programs continue to face an uncertain future. ASCE hopes that the House and Senate can find a solution and pass legislation in the 112th Congress. In the meantime, surface transportation programs will be subjected to another extension, while American jobs hang on the line.
Tags: economics, senate, transportation
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Louisiana Section’s PR Campaign Sets a Great Example
January 20th, 2012 | By: America's Infrastructure Report Card
We are repeating this post because we thought the information would also be of interest to the readers of this blog. It was first posted on Friday, January 20th, 2012 As the Louisiana Section was gearing up to release its first state Report Card this month, members realized that spreading the word of their findings would require an effective public relations campaign. Realizing they lacked the expertise to execute such a campaign, Section members hired a PR consultant, Baton Rouge-based Mark Lambert. The Section also reached out to ASCE’s Communications and Government Relations departments to request training based on ASCE’s PR University seminar. A half-day PR workshop allowed members to work one on one with ASCE staff who traveled to Baton Rouge. As tailored specifically for the Report Card’s release, the workshop identified proper spokespersons and covered potential issues they might have to address. One critical component was the development of strategies to promote the Report Card to elected officials after the planned press conference, in order to keep the momentum going. With what they’d learned during the PR workshop in mind, the Section wisely decided to reschedule the release upon learning that Louisiana’s governor would unveil an education plan on the same date. With that conflict avoided, the consultant and Nedra Davis, the Section’s communications representative, reached out to reporters one day prior to the rescheduled event to make sure the press conference was on their radar. The day of the event, a news release was distributed statewide. ASCE’s Communications staff distributed it to national trade publications, as well as some Washington, D.C.-based reporters who covered ASCE’s national Report Card for America’s Infrastructure and our Failure to Act economic studies. The press conference was a success. Three TV stations and other media covered their announcement. The Louisiana Section’s actions reflect the type and quality of services ASCE can offer to Sections and Branches — whether it is a state Report Card or the designation of a historical civil engineering landmark.ASCE Releases Economic Study on Nation’s Water Infrastructure
December 15th, 2011 | By: America's Infrastructure Report Card
ASCE is releasing a report today identifying the long-term consequences to the nation’s economy from failing to invest today in our aging drinking water and wastewater infrastructure. The report is the second in a four part series of economic studies assessing the impacts of continued underinvestment in the nation’s infrastructure systems. The report, Failure to Act: The Economic Impact of Current Investment Trends in Water and Wastewater Treatment Infrastructure, answers the question of how the condition of the nation’s deteriorating wastewater and drinking water infrastructure impinges on economic prosperity of American jobs, businesses, and entire sectors of the economy. In other words, how does a D- for water treatment identified ASCE’s 2009 Report Card for America’s Infrastructure affect America’s economic future? The report’s results are sobering. Water infrastructure in the United States is aging, and investments have not kept pace with the escalating costs. In fact, the report finds that by 2020, the US will have fallen $84 billion short of the investments needed in our critical water systems. Even with the increased use of sustainable practices and cost-effective development of other efficiency methods, the growing gap between capital needs to maintain drinking-water and wastewater treatment infrastructure and investments to meet those needs will likely result in unreliable water service and inadequate wastewater treatment. However, if we close that gap and invest in our water infrastructure, we can prevent the following impacts by 2020:- $59 billion in increased costs to households
- $147 billion in increased costs to businesses
- $416 billion in lost Gross Domestic Product (GDP)
- Loss of 700,000 jobs
Romans and Roads
December 2nd, 2011 | By: America's Infrastructure Report Card
Since the beginning of our current economic downturn, pundits and armchair historians alike have compared the modern United States to the Roman Empire shortly before its decline. I usually change the channel or flip to the next page when I read such headlines, because to put it plainly – the US is not Rome. I chalk it up to a case of playing on people’s fears to attract viewers or sell books, and go about my day. However, there are similarities between the two, and the good news is, unfortunately for Rome, we can learn from their expense. We all know what happened to the great and vast Roman Empire. It came to its height, in part, because of its vast and advanced transportation and infrastructure network. Its army was efficient in many ways, but part of the ferocity that struck fear in the enemies of Rome was the speed at which its fighting force could travel on the roads they built. Trade across the empire was considered reliable and consistent because of the costs the Romans bore in order to ensure a working transportation system. Even today, Roman roads are still used by Europeans. In fact, an Aqueduct in the Spanish town of Segovia had been used to provide water until only recently. Alas, Rome fell for a number of unique and specific reasons, but the beginning of the end of the Roman Empire paralleled closely with the rapid decline in its infrastructure. At ASCE we are committed to efficient, sustainable, and smart infrastructure development and work to include and educate lawmakers in our federal, state, and local governments on the imperatives we are facing. As with any issue that impacts the well being of our future, the old adage of “those who forget history are doomed to repeat” can be applied to the many ways in which we seek to advance the quality of our nation’s roads, bridges, dams, etc. We have the distinct benefit of being able to look back into our history and learn from the lessons of previous civilizations. As we begin our efforts to release ASCE’s 2013 Report Card on America’s Infrastructure, we should also ready ourselves to finally tackle the problems facing our nation’s declining network of transportation and infrastructure.Senate EPW approves transportation extension
September 8th, 2011 | By: America's Infrastructure Report Card
The Senate Environment and Public Works Committee approved, by a unanimous vote, a draft bill that would extend federal surface transportation programs through January 31, 2012. The legislation would be a clean extension of surface transportation programs and allows the Committee time to continue work on the Senate proposed two year surface transportation authorization bill. The current extension will expire on September 30th. ASCE has worked closely with Senate Environment and Public Works Committee Chairman Barbara Boxer to speak with committee members and express the essential nature of another extension. On Wednesday ASCE sent a letter to Senators who serve on the Environment and Public Work Committee urging the need for another extension, while a long term authorization is worked out. Following the vote this morning, ASCE President Elect Andrew Herrmann, P.E., SECB, F.ASCE, stated “The American Society of Civil Engineers applauds the Senate Environment and Public Works Committee for supporting an essential funding authorization for the nation’s roads and public transportation systems. Today’s vote extending the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users – or “SAFETEA-LU” – for an additional four months ensures that 1.8 million jobs across all 50 states and the District of Columbia will be protected in the near term. “While we are heartened by the bipartisan support for this law, a four-month extension at current funding levels represents the bare minimum of what must be done to address our nation’s crumbling transportation infrastructure. America’s transportation system is the very backbone of our economy. If current funding levels are maintained long term – or if funding levels are cut – America can expect to lose hundreds of thousands of jobs and hundreds of billions of dollars in economic growth over the next ten years. To ensure a prosperous and competitive economic future, ASCE urges Congress to increase long-term investment in the country’s deteriorating infrastructure.” ASCE urges Congress to increase long-term investment in the country’s deteriorating infrastructure and pass a multi-year surface transportation authorization. If the nations does not invest in surface transportation now, in the next ten years our nation’s economy is at risk of losing nearly $900 billion according to the ASCE surface transportation economic study that was released in July. ASCE will keep all Key Contacts up to date as the latest extension is passed in the Senate and worked on in the House."Earthicane" hits East coast
August 31st, 2011 | By: America's Infrastructure Report Card
In the wake of an earthquake and Hurricane Irene pummeling the East coast, there is now a spotlight on infrastructure. Thousands of bridges and roads needed to be inspected to make sure that they were safe for use. The graphic shows the grades from the 2009 Report Card for America’s Infrastructure. These natural disasters are a reminder of the importance of infrastructure to our daily lives, and that our infrastructure cannot last forever without improvements and renovations. All of these categories were impacted in some way by these disasters. Schools were shut down, rail, roads, bridges and transit needed to be inspected for damage, flights were cancelled, dams and levees were full to the brim, sewage overflows dumped into waterways. As we recover from these natural disasters, we need to focus on preparing for future disasters by making improvements now to our infrastructure. Infrastructure improvements would assist in protecting lives and property against potential disasters. Congress needs to take action now on the nation’s infrastructure problems, before more lives and property are put at risk due to hazards and corrosion. ASCE and other groups involved in transportation are concerned that without swift congressional action to reauthorize surface transportation funding, jobs will be lost and transportation infrastructure will continue to deteriorate. In ASCE’s Failure to Act economic study we found failure to invest in transportation infrastructure will hurt the US economy and families in the long term. When Congress returns from their summer recess they will only have 11 legislative days until the 18.4 cents per gallon gas tax expires on September 30th, which will leave the highway trust fund without revenue. The recent FAA extension, passed during pro forma sessions held while most members of Congress were not in Washington, is set to expire on September 16th. ASCE hopes Congress will act quickly on these important pieces of legislation.Tags: economics, hazards, infrastructure, infrastructure report card
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Falling Apart & Falling Behind
August 11th, 2011 | By: America's Infrastructure Report Card
Building America’s Future (BAF) unveiled their own study on transportation infrastructure titled, Falling Apart and Falling Behind, which highlights how crumbling transportation system makes the nation less competitive. Falling Apart and Falling Behind findings fit with the results of ASCE’s recent Failure to Act: The Economic Impact of Current Investment Trends in Surface Transportation Infrastructure. The report has four sections, the introduction which present the current status of our nation’s deficient transportation and the second of which identities why the U.S. has fallen from 1st place to 15th in the World Economic Forum’s infrastructure ranking. BAF’s study believes this is due to a lack of a coherent vision for nation infrastructure as well as, dwindling funding. The third part of the study shows our economic competitors are putting money into their transportation systems, while we are lagging behind. The U.S. spends roughly 1.7% of its GDP on transportation infrastructure while China spends 9% and Canada spends 4%. Other countries are making necessary investments in infrastructure to improve their economies as we hide from our growing infrastructure deficit. The fourth section makes these recommendations for how to deal with our transportation deficit: 1. Develop a national infrastructure strategy for the next decade that makes choices based on economics, not politics. 2. Re‐orient Washington’s priorities:- Pass a six‐year transportation bill.
- Target federal dollars toward economically strategic freight gateways and corridors.
- Re‐focus highway investment on projects of national economic significance.
- Invest more in mass transit.
- Implement the Next Generation aviation system.
- Improve facilities at economically strategic airports.
- Invest now in true high‐speed rail in economically strategic corridors.
- Establish a National Infrastructure Bank.
- Develop other ways to pay for road maintenance, including: congestion pricing, tolling, carbon auctions, fees based on miles traveled, Build America Bonds, or reserves built into capital budgets.
- Enhance or make permanent some of the innovative financing and funding mechanisms that have recently been put into place including: Transportation Investment Generating Economic Recovery (TIGER) grants and the Transportation Infrastructure Finance and Innovation Act (TIFIA).
- Develop “best practices” for public‐private partnerships.
- Increase accountability in the federal funding and project delivery process.
- Audit the U.S. Department of Transportation.
- Encourage and reward local innovation.
- Remove obstacles to state and local innovation.
- Increase Federal Leadership;
- Promote Sustainability and Resilience;
- Develop National, State, and Regional Infrastructure Plans;
- Address Life Cycle Costs and Ongoing Maintenance; and
- Increase Investment from All Stakeholders.
Failure to Act report released
July 27th, 2011 | By: America's Infrastructure Report Card
“We cannot solve the budget deficit without solving the infrastructure deficit.”
– Representative Earl Blumenauer
Today, ASCE released Failure to Act: The Economic Impact of Current Investment Trends in Surface Transportation Infrastructure. The report found the nation’s deteriorating surface transportation infrastructure will cost the American economy more than 870,000 jobs, and suppress the growth of the country’s Gross Domestic Product by $897 billion by 2020.
The report, conducted by the Economic Development Research Group of Boston, showed that in 2010, deficiencies in America’s roads, bridges, and transit systems cost American households and businesses more than $129 billion, including approximately $97 billion in vehicle operating costs, $32 billion in delays in travel time, $1.2 billion in safety costs, and $590 million in environmental costs.
If investments in surface transportation infrastructure are not made soon, those costs are expected to grow exponentially. Within 10 years, U.S. businesses would pay an added $430 billion in transportation costs, household incomes would fall by more than $7,000, and U.S. exports will fall by $28 billion.
Productivity across the business sector will also tumble. Those increased costs will cause businesses to underperform by $240 billion over the next decade. As a result, U.S. exports will fall by $28 billion, including 79 of 93 tradable commodities. America would also lose jobs in high-value sectors as business income goes down. Almost 877,000 jobs would be lost by 2020, primarily in the high-value, professional, business and medical sectors which are vital to America’s knowledge-based service economy. Ultimately, Americans will get paid less. While the economy would lose jobs, those who are able to find work will find their paychecks cut by nearly 30 percent.
A lack of investment in transportation infrastructure would hurt American families who would see their household incomes fall by $60 a month by 2020, while having to spend $30 per month more for goods. The total cost to families would exact about $10,600 per family between now and 2020, equal to $1,060 per year on household budgets.
The report estimates that in order to bring the nation’s surface transportation infrastructure up to tolerable levels, policymakers would need to invest approximately $1.7 trillion between now and 2020 in the nation’s highways and transit systems. The U.S. is currently on track to spend a portion of that – $877 billion – during the same timeframe. The infrastructure funding gap equals $846 billion over 9 years or $94 billion per year.
Small investments in infrastructure, equal to about 60 percent of what Americans spend on fast food each year, would:
- Protect 1.1 million jobs
- Save Americans 200 million hours in travel time each year and
- Deliver an average of $1,068 to each family, and
- Protect $2,600 in GDP for every man, woman and child in the U.S.
Failure to Act
July 26th, 2011 | By: America's Infrastructure Report Card
Have you ever wondered how much congestion costs you or what underinvestment in infrastructure really means? As if the nation’s economy isn’t struggling enough, a new study about to be released by ASCE finds the cost of deficient transportation infrastructure to American households and businesses is staggering. Wednesday, July 27th ASCE will release, “Failure to Act: The Economic Impact of Current Investment Trends in Surface Transportation Infrastructure.” The report builds off of ASCE’s Report Card for America’s Infrastructure and addresses the question, “what if investment does not change?” A key finding of this study is that the increasing deficiency of our nation’s roads, bridges, railways and transit will accelerate the decline in American families’ standard of living. The report delves into this issue deeper by examining — the cost to families and businesses of failing transportation infrastructure — the impact of surface transportation deficiencies on U.S. economic competitiveness — the levels of new investment needed to avoid serious economic consequences The findings of this report is come at a time when Congress ponders deep cuts in transportation infrastructure funding to help reduce the national debt — the opposite of what the nation needs to regain its economic footing and continue to be competitive in world markets. This is the first of four economic studies commissioned by ASCE. Subsequent reports will address water and wastewater, energy transmission, and airports and marine ports. This report will be available on July 27, 2011, and posted on ASCE’s website.
