The quality of infrastructure in the U.S. ranks just 19th in the world, trailing countries such as Oman, Portugal, and Spain, according to the World Economic Forum’s Global Competitiveness Report. Financially strapped state and local governments are responsible for the poor showing.
The American Society for Civil Engineers (ASCE)gave the U.S. a D+ in its annual Infrastructure Report Card, saying the country needs to invest $3.6 trillion by 2020 to upgrade our infrastructure. Infrastructure spending continues to lag, even while the economy adds jobs, GDP continues to grow, and home sales rebound following the recession.
States, counties, and cities, which are primarily responsible for funding schools, roads, waste disposal facilities, and other community assets, are focused on paying down debt and don’t have the money for a needed infrastructure spending spree. In the last few years, the bond markets have issued few notes for new capital projects despite historically low interest rates, according to the Securities Industry and Financial Markets Association. Much of the current municipal bond issuance appears to be refinancing.
In addition, with the federal government’s Highway Trust Fund expected to run out of money in August unless Congress replenishes it, many state transportation projects are in limbo.
(http://fivethirtyeight.com/features/why-we-still-cant-afford-to-fix-americas-broken-infrastructure/)
Related Stories
| Jul 16, 2014
Coastal flooding increasing along East Coast, says report
An analysis of tidal levels and flood data by the news organization Reuters concludes that flooding has increased along the Eastern Seaboard over the past four decades.
| Jul 16, 2014
Local hiring requirement a tough challenge for new Detroit arena project
An agreement for a land transfer from the City of Detroit to Ilitch Holdings Inc., that enabled construction of a new arena for the Detroit Red Wings requires that 51% of the project’s construction workers must come from the city.
| Jul 16, 2014
Local hiring requirement a tough challenge for new Detroit arena project
An agreement for a land transfer from the City of Detroit to Ilitch Holdings Inc., that enabled construction of a new arena for the Detroit Red Wings requires that 51% of the project’s construction workers must come from the city.
| Jul 16, 2014
Massive $6.5 billion Silicon Valley development gets key city approval
The Santa Clara (Calif.) City Council approved the next steps for a massive development project next to Levi’s Stadium, the new home of the San Francisco 49ers.
| Jul 11, 2014
California Supreme Court rules that architects can be sued by condo association
The decision held that even though, on most projects, the developer has the final say on design choices, the architect can’t escape liability to the end user.
| Jul 10, 2014
Latest construction accident fatality statistics reverse trend of declining deaths
The latest data on construction site fatalities for 2012 shows a rise in the death rate to 9.9 per 100,000 workers after 2011 had reached a recent low of 9.1 per 100,000, according to an analysis of data by the AFL-CIO.
| Jul 10, 2014
EPA seeking public comments on site contamination rules
The Environmental Protection Agency (EPA) is accepting public comment on its proposal to eliminate the dual standard for compliance with rules pertaining to testing of land that may have been contaminated by chemical pollution.
| Jul 10, 2014
Southern California city considers new water fee for developers
A persistent drought in Southern California could lead to a water fee for new construction projects in Ventura.
| Jul 1, 2014
$1 billion master planned development in California clears key hurdle
Plans for a new section of the proposed $1 billion La Entrada master-planned community in Coachella, Calif., moved ahead after the developer and city council agreed that the plan would include 500 affordable housing units.
| Jul 1, 2014
Dept. of Labor reaches settlement for $5 million in back wages for workers on federally assisted project
The U.S. Department of Labor and MDG Design & Construction LLC have reached a settlement over wage violations at the federally-assisted 26-story Grand Street Guild rehab project in New York City’s Lower East Side.