We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » What's the ROI for infrastructure?
Afterword

What's the ROI for infrastructure?

August 11, 2010
Peter Bradley
No Comments

I'm sure that U.S. Secretary of Transporta tion Ray LaHood didn't quite mean what he said when he told the Senate Budget Committee, "There's a lot of lousy bridges and roads that need to be constructed."

While the comment is amusing, LaHood's larger point was a crucial one—one that is frequently acknowledged and too seldom addressed: The United States' transportation infrastructure is in sore need of investment in repairs, upgrades, and added capacity.

It's not as if the nation doesn't already spend a lot on such projects, but the need is far greater than the resources allotted to them. LaHood told the committee that the Department of Transportation has a backlog of between US $80 billion and $100 billion in high-priority infrastructure-improvement projects that it cannot afford to fund, according to a report on FederalTimes.com.

Infrastructure projects were intended to be an important part of the United States' federal plan to stimulate the economy, and with good reason. One is jobs. The Associated General Contractors of America estimates that 25 percent of construction workers are unemployed, so the need is great. But spending on infrastructure is not just federal largesse intended to make work. It is a form of investment crucial to our economic well-being.

For several years now, businesses that move goods or depend on their movement have sought to convince policymakers of the importance of a sound, efficient national infrastructure to our economic strength. Trouble is, it's not easy to measure the return on investment in things like roads and bridges. We all know they can pay off in improved safety and reduced congestion, but how much exactly?

We may soon have some answers. As Janet Kavinoky writes in her article on infrastructure, "At a crossroads," the U.S. Chamber of Commerce is launching an effort to measure the performance of the nation's infrastructure and quantify exactly how it affects the U.S. economy. The trade group will create national and state performance indexes for each of what it considers the four core sectors of U.S. infrastructure: transportation, energy, broadband, and water.

The transportation index will be the first one the chamber issues. Once Congress turns its attention to the next round of transportation funding authorization bills, the index could provide just the sort of information needed to show how investment in roads, bridges, and so forth pays off for the entire nation—not just in construction jobs but in providing the clear arteries required for a healthy and vibrant economy.

    • Related Articles

      Get ready for the next revolution

      Revisiting the TPP

    Recent Articles by Peter Bradley

    Revisiting the TPP

    Building resilience into the supply chain: interview with Yossi Sheffi

    A champion for supply chains: interview with Kevin Smith

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Positive drug tests in U.S. workforce rise to 20-year high as marijuana is legalized

    • Wabash opens trailer manufacturing facility in Indiana

    • Six defining challenges of omnichannel fulfillment

    • Postal advocacy group says “excessive” July 9 stamp price hike will hurt consumers

    • CPKC and CSX buy rail assets from Genesee & Wyoming

    Featured Video

    8757b894 244c 4429 b5d8 e6df7b479d82

    Penalties for Wood Packaging Material Violations

    Viewer Contributed
    Our Services Include: Customs Broker Denver Freight Forwarder Denver Global Logistics Denver Cargo Insurance Denver Customs Bond Denver Customs Clearance Denver Customs Duty Denver Isf Filing Denver More details: Phone : 281-445-9779 Email: info@gallaghertransport.com Website: gallaghertransport.com

    FEATURED WHITE PAPERS

    • Five questions to ask before electrifying your indoor forklift fleet

    • Operator assist system myths busted

    • Three layers of forklift safety: Promoting operating best practices

    • The Complete Guide to Automated Packaging

    View More

    Subscribe to Supply Chain Quarterly

    Get Your Subscription
    • SUBSCRIBE
    • E-NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing