Infrastructure Issues - PowerPoint PPT Presentation


Title: Infrastructure Issues


1
Infrastructure Issues Challenges for Fairfield
County
  • William R. Buechner, Ph.D.
  • Vice President, Economics and Research, ARTBA
  • Fairfield Economy Conference
  • May 10, 2006

2
What is ARTBA?
  • A trade association
  • Founded in 1902
  • Headquartered in Washington, DC
  • 5,000 Member companies nationally and
    internationally
  • Represents the industry before Congress, federal
    government agencies and the courts

3
ARTBAs Focus is MultiModal
  • Members build roads, bridges, transit systems,
    airports, water ports
  • Highway policy - A national coordinated system
    of well-maintained highways and bridges with
    intermodal linkages must exist in support of
    interstate commerce and commercial export.
  • Transit policy Public transportation capital
    investment is an effective means of adding
    capacity and mobility options to the overall
    surface transportation system, thereby reducing
    traffic congestion and improving the transport of
    interstate commerce, and overall regional quality
    of life and productivity.

4
And Multi-Industry
  • Americans for Transportation Mobility
  • Chaired by U.S. Chamber of Commerce
  • Instrumental in TEA-21 reauthorization
  • Achieved additional 40 billion
  • Transportation Construction Coalition
  • Keep CT Moving Coalition
  • Construction, business and labor organizations

5
The Goal Solutions to Our Transportation Woes
  • Congestion
  • Growing truck/freight transportation needs
  • Deteriorating physical condition of
    transportation infrastructure
  • Inadequate public transportation, particularly in
    urban areas

6
The Interstate Highway System Had a Profound
Impact on U.S. and CT Economy
7
Before Interstates, One Day Highway Travel 250
Miles
v
v
8
Interstates Opened Vast New Markets, One-Day
Highway Travel 500 Miles
v
v
9
Interstate Highways Enabled
  • Expansion of potential market area
  • Economies of scale through new technologies
  • Relocation of economic activity to areas of
    competitive advantage
  • Rapid productivity increase and rise in national
    income and living standards

10
The Changes Had a Profound Impact on Connecticut
1963
2004
11
The Resulting Economic Growth
  • Allowed industry and jobs to disperse
  • Allowed families to move to suburbs and beyond
  • Enabled families with growing real incomes to
    purchase more personal cars and travel more

12
Results
  • Journey to work, other destinations is much more
    complex hub spokes replaced by tangled web
  • Travel became much more auto-dependent
  • Rising incomes made travel cheaper, growth of VMT
    exploded far beyond highway capacity

13
Today Travel Demands That the System Cannot Meet
14
Connecticut Has Less Highway Capacity Relative to
Needs than the U.S. Average
Interstate Miles
Total Road Miles
15
And Highway Capacity In CT is Not Keeping Pace
with Travel
16
Connecticut Commuters are More Highway-Dependent
than U.S. Average
17
Importance of Highways to Freight Shipments in
Connecticut
18
Freight Traffic on Connecticut Highways, 1998
19
Projected Freight Traffic On Connecticut
Highways, 2020
20
Infrastructure Investment and Northern Virginia
Share of Jobs in DC Area
  • No. VA built
  • I-66 inside beltway
  • Fairfax Prince William parkways
  • Route 28 expansion
  • Dulles Toll Road Greenway
  • Md. added some capacity
  • DC barely maintained

21
Action Plan A Comprehensive Multi-Modal Approach
Required
  • Highways
  • Preserve what we have
  • Add what we need
  • Manage it better
  • Transit
  • Must be part of the solution, part. in urban
    areas
  • Not in isolation part of comprehensive plan
  • Freight

22
Where Will the Money Come From?
23
Growth of Highway Funding Under SAFETEA-LU Will
Be Half of TEA-21
TEA-21- 8.5/year
STEA-LU- 4.4/year
24
Smallest Increases in Guaranteed Funding , FY
2009 vs. 2003
25
SAFETEA-LU Guarantees Highway Funding Above What
Revenues Can Support
26
And There Will Be No Cushion for SAFETEA-LU
Reauthorization
27
Federal Highway Funding Will Have to Fall Without
New Revenues
28
Until 2004, Highway Material Costs Were
Well-behaved, 12-Year Avg. Inc. of 1.8
Source Bureau of Labor Statistics. PPI for
Highway and Street Construction
29
In 2004, Major Price Increases Involved Steel and
.
Hot-Rolled Steel Bars Structures up 45 over
2003
2002
2003
2004
Source Bureau of Labor Statistics
30
Diesel Fuel
Up 27 over 2003
2002
2003
2004
Source Bureau of Labor Statistics
31
In 2005 ---
  • Cost increases spread to core highway
    construction materials
  • Widespread impact on cost of highway and bridge
    construction
  • Construction costs rose even more sharply than in
    2004

32
PPI for Crushed Stone Rose 3.5 in 2004, 6.8 in
2005, and 6-9 in 2006
2002
2003
2004
2005
2006
Source Bureau of Labor Statistics
33
PPI for Ready-Mix Concrete Rose 5.2 in 2004,
12.0 in 2005 and 9-12 in 2006
2002
2003
2004
2005
2006
Source Bureau of Labor Statistics
34
Asphalt Paving Mixtures Rose 1.6 in 2004, 8.3
in 2005 and 14-20 in 2006
2002
2003
2004
2005
2006
Source Bureau of Labor Statistics
35
Highway Material Costs Up Almost 30 Percent in
2004 - 2006
Source Bureau of Labor Statistics. PPI for
Highway and Street Construction
36
Impact of Rising Material Costs
  • Highways and bridges cost more to build
  • Bids higher than expected as contractors protect
    against unpredictable prices
  • Erosion of state and local highway construction
    maintenance budgets --some projects postponed or
    canceled

37
Business Community Must Be Advocates
  • SAFETEA-LU Reauthorization in 2009
  • Transportation investment proposals for
    Connecticut
  • Coalition with contractors, highway users, labor
  • Transportation crisis cant be fixed without
    business leadership
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Infrastructure Issues

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Transcript and Presenter's Notes

Title: Infrastructure Issues


1
Infrastructure Issues Challenges for Fairfield
County
  • William R. Buechner, Ph.D.
  • Vice President, Economics and Research, ARTBA
  • Fairfield Economy Conference
  • May 10, 2006

2
What is ARTBA?
  • A trade association
  • Founded in 1902
  • Headquartered in Washington, DC
  • 5,000 Member companies nationally and
    internationally
  • Represents the industry before Congress, federal
    government agencies and the courts

3
ARTBAs Focus is MultiModal
  • Members build roads, bridges, transit systems,
    airports, water ports
  • Highway policy - A national coordinated system
    of well-maintained highways and bridges with
    intermodal linkages must exist in support of
    interstate commerce and commercial export.
  • Transit policy Public transportation capital
    investment is an effective means of adding
    capacity and mobility options to the overall
    surface transportation system, thereby reducing
    traffic congestion and improving the transport of
    interstate commerce, and overall regional quality
    of life and productivity.

4
And Multi-Industry
  • Americans for Transportation Mobility
  • Chaired by U.S. Chamber of Commerce
  • Instrumental in TEA-21 reauthorization
  • Achieved additional 40 billion
  • Transportation Construction Coalition
  • Keep CT Moving Coalition
  • Construction, business and labor organizations

5
The Goal Solutions to Our Transportation Woes
  • Congestion
  • Growing truck/freight transportation needs
  • Deteriorating physical condition of
    transportation infrastructure
  • Inadequate public transportation, particularly in
    urban areas

6
The Interstate Highway System Had a Profound
Impact on U.S. and CT Economy
7
Before Interstates, One Day Highway Travel 250
Miles
v
v
8
Interstates Opened Vast New Markets, One-Day
Highway Travel 500 Miles
v
v
9
Interstate Highways Enabled
  • Expansion of potential market area
  • Economies of scale through new technologies
  • Relocation of economic activity to areas of
    competitive advantage
  • Rapid productivity increase and rise in national
    income and living standards

10
The Changes Had a Profound Impact on Connecticut
1963
2004
11
The Resulting Economic Growth
  • Allowed industry and jobs to disperse
  • Allowed families to move to suburbs and beyond
  • Enabled families with growing real incomes to
    purchase more personal cars and travel more

12
Results
  • Journey to work, other destinations is much more
    complex hub spokes replaced by tangled web
  • Travel became much more auto-dependent
  • Rising incomes made travel cheaper, growth of VMT
    exploded far beyond highway capacity

13
Today Travel Demands That the System Cannot Meet
14
Connecticut Has Less Highway Capacity Relative to
Needs than the U.S. Average
Interstate Miles
Total Road Miles
15
And Highway Capacity In CT is Not Keeping Pace
with Travel
16
Connecticut Commuters are More Highway-Dependent
than U.S. Average
17
Importance of Highways to Freight Shipments in
Connecticut
18
Freight Traffic on Connecticut Highways, 1998
19
Projected Freight Traffic On Connecticut
Highways, 2020
20
Infrastructure Investment and Northern Virginia
Share of Jobs in DC Area
  • No. VA built
  • I-66 inside beltway
  • Fairfax Prince William parkways
  • Route 28 expansion
  • Dulles Toll Road Greenway
  • Md. added some capacity
  • DC barely maintained

21
Action Plan A Comprehensive Multi-Modal Approach
Required
  • Highways
  • Preserve what we have
  • Add what we need
  • Manage it better
  • Transit
  • Must be part of the solution, part. in urban
    areas
  • Not in isolation part of comprehensive plan
  • Freight

22
Where Will the Money Come From?
23
Growth of Highway Funding Under SAFETEA-LU Will
Be Half of TEA-21
TEA-21- 8.5/year
STEA-LU- 4.4/year
24
Smallest Increases in Guaranteed Funding , FY
2009 vs. 2003
25
SAFETEA-LU Guarantees Highway Funding Above What
Revenues Can Support
26
And There Will Be No Cushion for SAFETEA-LU
Reauthorization
27
Federal Highway Funding Will Have to Fall Without
New Revenues
28
Until 2004, Highway Material Costs Were
Well-behaved, 12-Year Avg. Inc. of 1.8
Source Bureau of Labor Statistics. PPI for
Highway and Street Construction
29
In 2004, Major Price Increases Involved Steel and
.
Hot-Rolled Steel Bars Structures up 45 over
2003
2002
2003
2004
Source Bureau of Labor Statistics
30
Diesel Fuel
Up 27 over 2003
2002
2003
2004
Source Bureau of Labor Statistics
31
In 2005 ---
  • Cost increases spread to core highway
    construction materials
  • Widespread impact on cost of highway and bridge
    construction
  • Construction costs rose even more sharply than in
    2004

32
PPI for Crushed Stone Rose 3.5 in 2004, 6.8 in
2005, and 6-9 in 2006
2002
2003
2004
2005
2006
Source Bureau of Labor Statistics
33
PPI for Ready-Mix Concrete Rose 5.2 in 2004,
12.0 in 2005 and 9-12 in 2006
2002
2003
2004
2005
2006
Source Bureau of Labor Statistics
34
Asphalt Paving Mixtures Rose 1.6 in 2004, 8.3
in 2005 and 14-20 in 2006
2002
2003
2004
2005
2006
Source Bureau of Labor Statistics
35
Highway Material Costs Up Almost 30 Percent in
2004 - 2006
Source Bureau of Labor Statistics. PPI for
Highway and Street Construction
36
Impact of Rising Material Costs
  • Highways and bridges cost more to build
  • Bids higher than expected as contractors protect
    against unpredictable prices
  • Erosion of state and local highway construction
    maintenance budgets --some projects postponed or
    canceled

37
Business Community Must Be Advocates
  • SAFETEA-LU Reauthorization in 2009
  • Transportation investment proposals for
    Connecticut
  • Coalition with contractors, highway users, labor
  • Transportation crisis cant be fixed without
    business leadership
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