From Infrastructure to Unemployment

By CE Contributing Authors April 2, 2013 View Profile

American Society of Civil Engineers Gives D+ to America’s Infrastructure

From Infrastructure to Unemployment The American Society of Civil Engineers (ASCE) just released its 2013 Report Card for America’s Infrastructure, a comprehensive assessment of the nation’s infrastructure across 16 sectors. Updated once every four years, this year’s Report Card found that America’s cumulative GPA for infrastructure rose slightly to a D+ from a D in 2009. The Report Card estimates total investment needs at $3.6 trillion by 2020 across all 16 sectors, leaving a funding shortfall of $1.6 trillion based on current funding levels.

The grades in 2013 range from a high of B- for solid waste infrastructure to a low of D- for inland waterways and levees. None of the categories received a lower grade than in 2009. However, near-failing grades continue to be seen in numerous sectors that are crucial to the economy and Americans’ quality of life.

Encouraging trends were found in sectors where focused investments were made. Six sectors (solid waste, drinking water, wastewater, roads, bridges and rail) each experienced incremental improvements since the last assessment. America’s rail sector saw the largest improvement, moving from a C- to a C+.

The grades by sector include: Dams (D), Drinking Water (D), Hazardous Waste (D), Levees (D-), Solid Waste (B-), Wastewater (D), Aviation (D), Bridges (C+), Inland Waterways (D-), Ports (C), Rail (C+), Roads (D), Transit (D), Public Parks and Recreation (C-), Schools (D) and Energy (D+).

“A D+ is simply unacceptable for anyone serious about strengthening our nation’s economy; however, the 2013 Report Card shows that this problem can be solved. If we want to create jobs, increase trade and assure the safety of our children, then infrastructure investment is the answer,” said ASCE president Gregory E. DiLoreto, P.E.

“We must commit today to investing in modern, efficient infrastructure systems to position the U.S. for economic prosperity,” added DiLoreto. “Infrastructure can either be the engine for long-term economic growth and employment, or it can jeopardize our nation’s standing if poor roads, deficient bridges and failing waterways continue to hurt our economy.”

For the first time, the Report Card for America’s Infrastructure features state specific data and rankings. Also for the first time, the Report Card is available as a digital application that includes videos and other multimedia tools. Available for download from iTunes and Google Play, the app is supported across all major platforms and devices. It is also accessible online at www.infrastructurereportcard.org and is supported across all major platforms and devices.

Construction Employment Level Hits Three-Year High

The construction industry added 48,000 jobs in February, the ninth consecutive month of job growth for the sector, as more people are working in construction than at any point in the last three and a half years, according to an analysis of government data by the Associated General Contractors of America (AGC). Association officials cautioned, however, that employment gains remain tenuous and could be undermined if Washington officials fail to reach a deal on federal investment levels later this month.

“With construction employment increasing by the largest amount for a single month in nearly six years, the steady improvement in construction hiring is particularly encouraging,” said Ken Simonson, the association’s chief economist. “The job gains are coming from every part of the construction industry and while the sector’s unemployment rate remains stubbornly high, it is heading in the right direction.”

Construction firms employed 5.78 million people in February, a gain of 48,000 from January and 140,000 or 2.5 percent from a year ago, Simonson noted. The industry unemployment rate, which is not seasonally adjusted and thus is typically high in February, fell from 17.1 percent in February 2012 to 15.7 percent last month. Both residential and nonresidential construction added jobs for the month and year. Residential construction ó building and specialty trade contractors ó added 19,400 jobs in February and 64,200 (3.1 percent) over 12 months. Nonresidential construction ó building, specialty trade, and heavy and civil engineering construction ó expanded by 29,000 employees in February and 75,700 (2.1 percent) over the year-ago level.

“Both single- and multi-family homebuilding have been accelerating for several months and should continue to add jobs in the near future,” Simonson said, noting that he expects construction employment may increase by 250,000 in 2013. “On the private nonresidential side, there will likely be strong growth in power and energy-related projects, manufacturing and distribution facilities and private college construction. However, public construction remains weak.”

Association officials said that recent improvements in construction employment could be undermined if Congress and the Obama administration fail to reach an agreement to fund federal operations known as a continuing resolution by March 27. Should Washington officials fail to enact a new continuing resolution, tens of billions of dollars worth of federal investments in infrastructure and construction projects could be shut down.