White House New Infrastructure Plan Boosts Heavy Building Materials Industry
For years, there have been reports about crumbling bridges and roads and the advanced age of the US transportation infrastructure. Recently, the White House rolled out a new infrastructure plan as part of its fiscal year 2019 budget. The whopping $1.5 trillion total investment will transform the current infrastructure into more modern and safe assets. Specifically, the federal government will make $200 billion investments over the next ten-years.
Some components of the White House’s national infrastructure plan, taken from the White House’s official plan and media reports include 6 principles:
- $200 billion in Federal funds to spur at least $1.5 trillion in infrastructure investments with partners at the State, local, Tribal, and private level.
- New investments will be made in rural America, which has been left behind for too long.
- Decision making authority will be returned to State and local governments.
- Regulatory barriers that needlessly get in the way of infrastructure projects will be removed.
- Permitting for infrastructure projects will be streamlined and shortened.
- America’s workforce will be supported and strengthened.
The Wall Street Journal listed the US infrastructure needs in order from a study by the American Society of Civil Engineers as:
Surface Transportation, Electricity, Schools, Airports, Rail, Water/Wastewater Infrastructure, Public Parks & Recreation, Levees, and Dams. Based on these needs and the infrastructure plan, Construction Employers of America (CEA) responded with appreciation for the governments focus on the dire state of US infrastructure, but called for additional funding because of the magnitude of projects.
CEA wants to ensure there is a large enough workforce for the construction projects created by the new plan and is committed to expanding the registered apprenticeship programs to train workers in much needed positions. Other policy makers were asked their opinion of the plan. Michael Burke, Chairman and CEO of AECOM said, “Our nation’s aging infrastructure is now the greatest impediment to maximizing economic growth and prosperity, and disrepair costs American families more than $3,400 a year.”
Rebuild and Modernize
Other organizations and individuals believe that the plan is needed immensely to rebuild and modernize the American infrastructure to “maintain America’s economic competitiveness and to connect communities and people to more opportunities.” Congested freeways along cost the US $160 billion annually in lost productivity. The deteriorating water systems experience 240,000 water main breaks each year. Most recently a main Atlanta water pipe broke in the city of Decatur, shutting down schools, roadways and offices for a day.
While the plan has just been introduced, the exact details are still being discovered. Regardless, the construction and associated industries are sure to play a major role in using the funds to re-build American roadways, bridges, and other infrastructure. Stay tuned to see what happens.