Transportation construction ripples through economy

In conjunction with its annual meeting, the American Road and Transportation Builders Association (ARTBA) has just released a report called “The U.S. Transportation Construction Industry Profile.” I think it's a real eye-opener.

This new report shows that the annual value of transportation construction in the US will surpass $120 billion this year. This ranks higher than industry sectors such as farming ($97.5 billion) and coal mining ($29.8 billion).

More importantly, the report says money invested this year in transportation construction will generate more than $380 billion in economic activity. That is nearly 3% of America's gross domestic product (GDP), and it's actually more than the GDP of 160 nations, including Saudi Arabia ($370 billion) and Kuwait ($111 billion).
 

You know, when I talk about renewing America's transportation infrastructure through the American Recovery and Reinvestment Act, I focus on jobs because that is a real priority for our nation. And by the end of this year the Recovery Act will have saved or created 3.5 million jobs.

But I also talk a lot about the indirect economic activity generated by transportation construction. And when $120 billion in direct activity from an industry stimulates more than $380 billion in spending, that is what I call a real ripple effect.

When we talk about the scope of transportation construction, we also have to talk about how that construction builds the foundation of our economy. As Alison Premo Black, the report’s author says:

“Transportation infrastructure makes all kinds of other economic activity possible. Tourism, manufacturing, transportation and warehousing, agriculture, forestry, general construction, mining, retailing and wholesaling are all wholly dependent on the work done by the U.S. transportation construction industry. And these, what I call dependent industries, employ nearly 80 million Americans.”

According to the report, each year more than 19.4 million tons of freight with a value of $14.2 trillion are shipped over our transportation network. Our roadways make possible more than 5 trillion in highway passenger miles, and our commuter and passenger railways make possible nearly 10 million trips. And, in 2008, that infrastructure was worth $2.97 trillion, or 32% of the value of all fixed assets in the United States. 

Not only does transportation construction trigger immediate economic activity that creates and sustains good jobs. It also leads to ripple effects that multiply the value of our nation's investments in transportation. And it builds American assets that last for many decades and provide all of us access to jobs, services, materials and markets.

So, as ARTBA members gather in New York this week, I want to thank them for sharing the message that "Transportation makes America work."

Comments

[movers]

thank you for this information. its a great article. transit is very important to all of us. especially to the workers and also to students.transportation construction is very expensive but i would help a lot of people.
http://www.moversdirectory.com

[John Stevenson]

Secretary LaHood - RE: Revitalization of the Octoraro RR in S. Chester Co., Pa.

Dear Secretary LaHood

We have corresponded previously regarding the proposed Revitalization of the Octoraro Railroad in Southern Chester County, Pennsylvania. As explained in www.OATrainS.org at minimal costs in today's world, hundreds of engineering and construction jobs would be created leading to permanent jobs working on and along the improved rail system. At the same time, this project would go a long way towards providing a much needed tax burden base balance which is missing in many communities in this region.

Understanding that the Northeast Corridor is critical to today's Rail Transit Traffic Program, there are no alternative rail routes available to freight and passenger providers should there be trouble in the Northeast Corridor between Perryville, Maryland and Wilmington, Delaware. Our alternative Rail Route on the Old Octoraro Railroad right-of-way would fill that void.

Please study this proposal and see its benefits and give it consideration. This project helps the local economy of many small towns, a large region of Southern Chester County and Delaware County in Pennsylvania, most all of Cecil County, Maryland (particularly accommodating some traffic issues growing as a result of the BRAC at Aberdeen, Md ) and addresses potential problem solving on the larger scale of uninterrupted freight and passenger rail traffic on the Northeast Corridor. That is a lot of benefits for just one project to offer.

In addition, this project would allow for the regeneration of the Bainbridge Naval facility by providing freight and passenger accesss once again making this site available for any expansion requirements that may some day be required by the Aberdeen Facility. Again, this project has the ptential of many benefits for a reasonable cost.

Thank you Mr. Secretary for your time and consideration. We look forward to hearing from you.

Sincerely

John

John Stevenson, Architect
Chairperson - OATS
Oxford Area Transit Services
www.OATrainS.org
5 Mount Vernon Street
Oxford, Pa. 19363
610 932 9670
c.john.stevenson@oatrains.org

[Rick Buie]

Thanks for keeping America working during this challenging economic time that we find ourselves in. It's sad that we had to wait, but these projects will benefit us all well into the future. T href = http://coastal-supply.comhanks again!