The Garrison Report #2009-8


Infrastructure Crisis

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Our nation's infrastructure is in crisis. The ASCE gives it an overall grade of D. If you had a grade point average of D in school, you would flunk out, so it seems is that it's equivalent to failing. The ASCE has estimated that it will take $2.2 trillion to bring the nation's infrastructure up to where it needs to be. Over the past three years, it has declined $200 billion a year, and the situation continues to get worse because even with the stimulus package, the amount of money being spent on infrastructure for 2009 is down from previous years. Those figures don't take into account the priceless cost of those who have died in recent years from bridge collapses or levee failures.

Obviously if you work directly in the infrastructure segment of the construction industry, this report is important to you, but even if you don't, this report affects you. The decline of our infrastructure has a negative consequence on all construction. For example, when traffic becomes excessive, companies will build their facilities someplace else. When you consider that the nation is currently wasting $200 billion a year sitting in traffic, you start to understand the problem. Yet the ASCE estimates that, of the $930 billion that needs to be spent on roads and bridges over the next five years, only about $350.5 billion, or a mere 37.7 percent, will be spent.

In other communities, waste water treatment is so inadequate that they are barred from additional development until they rectify the problem. If the energy system isn't addressed, we could experience severe energy shortages. Our nation talks about the importance of education, yet our school buildings receive a D grade and the National Education Association estimates that it will take $322 billion to bring our nation's schools up to a state of good repair.

When you consider that bridges get the highest grade (a C) but that 26 percent of all bridges in the United States are considered either structurally deficient or functionally obsolete, you begin understand the magnitude of the problem. We can't wait for more bridges to collapse like the St. Anthony Falls Bridge in Minneapolis before we start taking action.

We need the construction industry to make a concerted effort to establish a national direction for infrastructure. This doesn't mean a few lobbyists at our industry associations; it means everyone within the industry. Companies need to encourage their employees to get involved in their communities because this is the only way we will be able to educate the public and help to formulate a community and national vision. When Ted Garrison interviewed Congressman John Mica, the ranking Republican on the Committee of Infrastructure and Transportation, he said that what's lacking is a vision. We must start with the creation of sound vision.

Recently the author was at a convention where educating the public was being discussed. An executive from an electrical utility stood up and said that's a problem because the public doesn't want to hear about rate increases. Everyone understands that no one wants to pay more taxes or user fees. However, we can't afford to underfund these items either, or we will pay for them without getting the benefits. For example, $200 billion is wasted in traffic jams and another $67 billion a year is spent on vehicle repairs due to poor road conditions. It's like the old Fram Oil commercial, "Pay me now or pay me later."

Part of the problem is that the public is not aware of the situation, which is sometimes due to bad information. There are politicians who get up and argue against rate increases because they say they're not needed. They take this position because it will get them votes. We can't allow politicians to tell people what they want to hear; we need to hold them accountable for telling the truth. Further, we need to ensure that money spent on infrastructure is not wasted. When congresspeople divert funds to low-priority pet projects with little true benefit for the public at large, the public becomes frustrated and turns against fees and taxes because they are tired of seeing their money wasted.

If the industry gives press briefings or speeches without doing anything, it appears that we are self-serving. However, if we become involved in community activities, our credibility will increase. As engineers and architects, we can make the case as experts. However, to be credible, we must offer consistent advice that provides the best solution for the nation. This means we can't put our local community or ourselves first. Recently I attended a function where the governor of Nebraska said they were struggling with their infrastructure priorities but that the current list of projects didn't include any from his or the speaker of the house's hometown areas. Why? He said whether we like it or not, our local projects are not the highest priorities. That is leadership, not pork barrel politics.

The idea is that if we always invest in the projects that produce the greatest value, then the nation as a whole will prosper and there will be funds available for the next round of projects. However, if we squander the money on projects that produce little value, there will be a continuing decline of funds. If the nation invests wisely in its infrastructure, then the country will thrive and infrastructure investment will stimulate private construction spending. What is needed is a 10- or 15-year plan where the nation invests in its infrastructure to return it to what it should be. We can't go faster because of limited economic and human resources. Even if the necessary work takes 10 years, it will require an almost 30 percent increase in the construction industry.

My challenge to everyone in the industry is to step up and become accountable for our nation's infrastructure. It's critical to our country's economic strength, and it certainly will affect the construction industry. Therefore, your time and effort will be worth it.

 

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