John Hennessy III,
P.E.
AMERICAN COUNCIL OF ENGINEERING COMPANIES (ACEC) By Samuel Greengard When engineering and construction crews completed the massive Panama Canal modernization project in June 2016, it was a defining moment in global commerce. The $5.25 billion upgrade, which allowed new and significantly larger ships to pass through the series of new locks, represented nothing less than […]
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This paper confronts perceived infrastructure failings with the data on public and private real infrastructure spending over recent decades. Interestingly, the data do not immediately point to a specific explanation for the poor perceived state of infrastructure. Accordingly, we turn to some possibilities that might explain the gap, such as changes in infrastructure needs and the quality of infrastructure spending.
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Written by Mary Scott Nabers President and CEO, Strategic Partnerships Inc. After the November election, infrastructure reform is one of only a few topics that can be discussed with civility. However, that doesn’t mean there aren’t conflicting opinions about how to fix the problems. President-elect Donald Trump has promised to infuse $1 trillion into infrastructure […]
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“I think it’s the first time in recent history that we’ve seen two presidential candidates talk about the infrastructure needs and willingness to address the infrastructure funding deficit…So we really feel like the public is starting to get more engaged, starting to understand that we do have infrastructure needs around the country and are willing to come to the table to have serious discussions to figure out how to solve these problems.”
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“We’re at a point now where, with more than $44 billion last year, aggregate investment in the U.S. in renewable energy is over $370 billion…In a lot of the developed world, renewables are the biggest single infrastructure investment that’s going on. You’re actually seeing more spent on renewables than on traditional infrastructure like roads and bridges, which is a pretty big surprise.”
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With interest rates close to zero, or in some cases negative in real terms, and the bazooka of QE already widely deployed, policymakers are running out of monetary levers to pull. This leaves us with the potential of fiscal stimulus, one aspect of which is infrastructure spending which can boost growth using both short-term demand effects, and longer-term supply effects, with the so-called multiplier effect implying that, if done correctly, the resulting GDP boost is larger than the initial investment.
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Firm leaders are optimistic that the engineering market will improve over the coming year. Market expectations for one year from today rose a hefty 6.2 points to 63.3, the largest quarter-over-quarter increase since the EBI’s inception. “Things are very good for our transportation infrastructure firm and we expect it to continue as awareness increases that we need to address it,” said one respondent. A member in Colorado said, “Market conditions improved in our area in the last three years and remain very strong.” One area of concern continues to be softness in the energy-producing states. “Wyoming’s economy is significantly down due to coal, oil, and natural gas sales declines,” said a respondent. “Nearly all infrastructure funding derives from state taxes on those industries, thus our outlook is less optimistic.”
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Investing in sustainable infrastructure is key to tackling the three central challenges facing the global community: reigniting growth, delivering on the Sustainable Development Goals, and reducing climate risk in line with the Paris Agreement…The Global Commission has identified a number of priority actions to rapidly shift investments toward sustainable infrastructure. A number of their previous recommendations are also relevant to this agenda.
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Railways, highways, bridges, dams, skyscrapers. When it comes to building infrastructure, China can do it fast. But at what cost?
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Transportation keeps the global economy moving. Any operational disruptions have wider consequences for society, making the management of the associated risks a priority that should transcend industry boundaries
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