Every four years, the American Society of Civil Engineers (ASCE) issues a report card on American infrastructure. In the last report card (2021) the organization awarded the U.S. a C-minus for its overall infrastructure. Sadly, chances are very good the grade will either hold steady or drop when next year’s report cards are released.
The awarding of this unimpressive grade is the product of several factors, including but not limited to a $12 billion funding deficit for waterside infrastructure at American ports over the next decade, $15 billion in back bridge repairs, a railroad system in need of critical replacements, a need for more dredging at most of the ports, and rebuilding the Francis Scott Key bridge that crumbled when a container ship hit one of its supports.
“Much of our problems are due to a lack of government commitment to spend what is necessary to keep our infrastructure competitive,” said Anthony Fullbrook, president of OEC Group’s North American Region. “In the past 55-years, federal spending for infrastructure has dropped from 5.8% of our annual budget to 2.5%. The U.S. government needs recommit to spending on its infrastructure in order to maintain its competitive edge.”
Additionally, investing in infrastructure will create more jobs and generate billions of dollars in federal, state, and local income. One prime example of the economic advantages of modernizing infrastructure can be seen in at the Port of Houston, where the State of Texas is invested $1 billion to widen and deepen the shipping channel into Houston to allow for better vessel traffic flow and larger vessel capacity at a port that already handles 230 million tons of cargo annually.
This $1 billion investment resulting in the Port of Houston now returns more than $900 billion to the country and nearly $440 billion to the state – in just one year! Since the improvements were permanent every additional dollar will add to the return.
In Milwaukee, Mitchell Airport is planning on constructing a much-needed Class A air cargo hub that will take advantage of the areas highways and trucking and warehouse industries to bring a less expensive and sorely needed import and export option to the area’s burgeoning pharmaceutical and food industries.
While Port Houston and Milwaukee’s Mitchell Airport have both made significant infrastructure investments aimed at spurring economic growth, the rest of the country has not followed suit. In 2021, ASCE said the US would lose $2.5 trillion in economic growth, and over three million jobs, by 2039 if infrastructure continued decaying. It has been four years since the ASCE’s report and the U.S. still has a long way to go to earn a better grade.
“The logistics industry has had to deal with faulty infrastructure for decades, and we’re tired of infrastructure continuing to be an afterthought. While some small pockets, such as Houston and Milwaukee, understand the economic benefits of prioritizing infrastructure, the rest of the country also needs to prioritize these investments if we are to continue to keep our standing as the world’s top economy,” said James Vanderloo, head of OEC Group’s Milwaukee office. “China invests an estimated 4.8% of its GDP in infrastructure while the United States invests just 0.5%. The U.S. needs to increase its infrastructure spending, otherwise it risks falling behind other global players.”
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