a bridge too far gone: interview with Barry LePatner
Long before last year's tragic Minneapolis bridge collapse, Barry LePatner was out sounding the alarm about the nation's crumbling infrastructure. The biggest problem, he says, has nothing to do with engineering and everything to do with politics.
Mitch Mac Donald has more than 30 years of experience in both the newspaper and magazine businesses. He has covered the logistics and supply chain fields since 1988. Twice named one of the Top 10 Business Journalists in the U.S., he has served in a multitude of editorial and publishing roles. The leading force behind the launch of Supply Chain Management Review, he was that brand's founding publisher and editorial director from 1997 to 2000. Additionally, he has served as news editor, chief editor, publisher and editorial director of Logistics Management, as well as publisher of Modern Materials Handling. Mitch is also the president and CEO of Agile Business Media, LLC, the parent company of DC VELOCITY and CSCMP's Supply Chain Quarterly.
It was 1982 when Barry LePatner published his first work on the deteriorating condition of our nation's roads and bridges. Now, nearly three decades and one particularly well-publicized bridge collapse later, LePatner still wonders whether anyone—and most importantly, our elected officials—will do anything about it.
The founder of the New York City-based law firm LePatner & Associates LLP, he is a nationally recognized speaker and author on the topics of infrastructure, engineering, and construction. His most recent work, Broken Buildings, Busted Budgets, examines waste and mismanagement in America's $1 trillion construction industry and lays out a blueprint for reform. It also examines the likely consequences of years of neglect on our nation's aging infrastructure and suggests that the problem is, in fact, far worse than has been disclosed.
LePatner spoke last month with DC VELOCITY Group Editorial Director Mitch Mac Donald about the magnitude of the problem, the perils of inaction, and why it's up to us, as citizens, to insist that politicians make these infrastructure problems a national priority.
Q: The U.S. transportation infrastructure has been aptly described as the circulatory system of our nation's economy. Why has it been so difficult to convince both the public and elected officials of the hazardous condition of our roads and bridges and get them to take action?
A: For several decades now, our nation's policymakers, leaders, and legislators have looked at infrastructure as an area that didn't need to be fully addressed, despite the warnings of state transportation engineers. Politicians do not look at infrastructure issues as "sexy." If they're told it will take $80 million for a bridge to be brought up to standards, they'd still prefer to spend $8 million on minor touch-ups to the bridge and use the rest to open a park so they can stand up in front of a crowd and cut a ribbon. The condition of our bridges, roads, and tunnels is no longer dismissible like that. That is the most important point.
Q: Given the publicity that surrounded the Minneapolis bridge collapse last August, do you think the infrastructure might finally receive the attention it requires?
A: We can only hope that politicians pay heed to what that collapse represents, but I fear that after an initial few months of effort, we're not going to see what has to be done being done.
Let me give you a little background on how bridges are evaluated for safety.When it comes to rating state bridges— the bridges in your state, my state, any other state—they're rated by categories. The two lowest categories are "structurally deficient" and "functionally obsolete." "Structurally deficient" means that the bridge is no longer capable of meeting the demands it was originally designed to handle. "Functionally obsolete" means that the bridge doesn't meet current design standards and if we don't take remedial action, it's only a matter of time before it drops into the "structurally deficient" category. Here's what's so worrisome about the I-35W bridge in Minneapolis: Although it had been identified as having gusset plate design problems, the I-35W bridge was in neither of those categories.
Q: That is troubling.
A: The scary part is that when we talk about potentially dangerous structures, we're not just talking about the hundreds of thousands of bridges that fall into one of those two categories; we are also talking about bridges that aren't even in those categories. State transportation budgets have not allowed for the right kind of inspections, or a sufficient number of inspections, or the spending on the technology to detect incipient problems in those structures.All of this is very scary stuff.
Q: So even though the federal government has identified more than 150,000 bridges as being structurally deficient or functionally obsolete, we have bridges like I-35W that haven't even made the list. In other words, the problem is actually even larger than most of us realize.
A: Remember, politicians just have to make what they believe are the best choices for their constituencies. But if you've been in office for two, five, or 10 years and the bridges in your jurisdiction have been standing for 40 or 50 years, you probably figure it's safe not to allocate the full amount that the local engineers are asking for because those bridges are going to outlast your term in office. It will be someone else's problem. It is a safe thing to do. I have a limited amount of money. I will give you a few bucks. Just keep it going and let's move on to the next issue.
What we now know is that when—not if, but when—the next bridge collapses, some politicians unfortunately are going to have blood on their hands. Since 1989, there have been 500 bridge failures in our nation—that's 500 in the last 20 years. This is not an isolated problem.We have been ignoring the needs of our bridges, roads, and tunnels when it comes to allocating proper maintenance and operational money. It comes home to roost.
Q: You have noted that we allocate roughly $2 billion annually for the maintenance of almost 600,000 bridges. That averages out to just $3,500 per bridge per year. I'm not sure I could even get my house painted for that amount of money!
A: The enormity of the problem that we are facing in terms of addressing this issue is more than most people can grasp.
Q: You have been trying to bring this issue into the spotlight for nearly 30 years. What led you to get involved?
A: I have been looking at this situation for too many years, mostly because I live and work in New York City. I saw our bridges crumbling during the '70s and '80s and into the early '90s, literally crumbling. When I spoke to the city transportation commissioner who was trying to keep them together with spit and glue because we had no money in the city to put toward those bridges, I learned how precarious the situation was and how all of us were literally putting our lives in jeopardy when we used those bridges.
Since the late 1990s when our city, like the rest of the country, had a great surplus of money, New York has spent over $3 billion on its bridges and approaches, and to this day spends another $500 million a year bringing the many bridges in and around New York City up to speed and up to design standards. That is an exemplary situation for heeding the call, because obviously the message got through to our politicians. We are not safe when our families, our friends, and our business colleagues are going across bridges that, according to the experts, are in danger of failing.
Q: It's been noted that some of the current presidential candidates have mentioned infrastructure as an issue they would address should they be elected. I don't recall that ever coming up in a presidential election cycle before, do you?
A: During the Republican debates a few months ago, Ron Paul spent 30 seconds on infrastructure. I got more calls and e-mails from friends saying,"They must be listening to you,"like I'm the only one marching around this country talking about that. I still get e-mails not only from my publisher but from a lot of other people saying, "We heard [Barack] Obama talk about this." Still, I think there's a bit of a difference between talking about it and acting upon it.
In 2005, Congress passed and the president signed a transportation bill that included $300 billion in funding for roads, bridges, tunnels, and general infrastructure projects. At the same time, the administration made it clear that it was disbursing these monies throughout the nation with the understanding that the federal government would no longer have any say or take any role in determining the design of any future roads and bridges or how they are repaired. In other words, it made it strictly an allocation for local politicians. I believe that is a huge mistake that has to be remedied as soon as possible. We cannot afford to have local politicians deciding issues like this. That is why your readers, like every other constituency, should be hounding politicians to let them know that 500 bridge failures since 1989 is unacceptable and that we cannot afford one more bridge collapse in this country.
Q: Is that all we can do?
A: Let me simplify things. The American Society of Civil Engineers has estimated that it would take $1.6 trillion to bring our nation's infrastructure up to speed. I have reason to believe it would be twice that much, but put that aside. It is mind-boggling.
Let's bring it down to a simple level. No matter where in America I might live, I would want my local politician to answer one simple question: Are any of the bridges in a 50mile radius of my house—bridges that I, my family members, my friends, and my business colleagues travel over every day—on the list of structurally deficient or functionally obsolete structures? If the answer is yes, I would tell that politician, "I am going to be at your doorstep demanding to be told what the engineers have told you it's going to cost [to fix it]. And I'm going to be asking you why you aren't at the state capital or in Congress in Washington, D.C., getting a piece of the action to protect us. Because if you don't do that, what are you doing? Building me another school? I don't care about schools if there's a chance that my kids' school bus could wind up on the bottom of the Mississippi River. I don't want my family going over a bridge that falls into one of those two categories." And, of course, that's only the tip of the iceberg. Then I also have to worry about bridges like the I-35W bridge that haven't even made the list of structurally deficient or functionally obsolete bridges.
A move by federal regulators to reinforce requirements for broker transparency in freight transactions is stirring debate among transportation groups, after the Federal Motor Carrier Safety Administration (FMCSA) published a “notice of proposed rulemaking” this week.
According to FMCSA, its draft rule would strive to make broker transparency more common, requiring greater sharing of the material information necessary for transportation industry parties to make informed business decisions and to support the efficient resolution of disputes.
The proposed rule titled “Transparency in Property Broker Transactions” would address what FMCSA calls the lack of access to information among shippers and motor carriers that can impact the fairness and efficiency of the transportation system, and would reframe broker transparency as a regulatory duty imposed on brokers, with the goal of deterring non-compliance. Specifically, the move would require brokers to keep electronic records, and require brokers to provide transaction records to motor carriers and shippers upon request and within 48 hours of that request.
Under federal regulatory processes, public comments on the move are due by January 21, 2025. However, transportation groups are not waiting on the sidelines to voice their opinions.
According to the Transportation Intermediaries Association (TIA), an industry group representing the third-party logistics (3PL) industry, the potential rule is “misguided overreach” that fails to address the more pressing issue of freight fraud. In TIA’s view, broker transparency regulation is “obsolete and un-American,” and has no place in today’s “highly transparent” marketplace. “This proposal represents a misguided focus on outdated and unnecessary regulations rather than tackling issues that genuinely threaten the safety and efficiency of our nation’s supply chains,” TIA said.
But trucker trade group the Owner-Operator Independent Drivers Association (OOIDA) welcomed the proposed rule, which it said would ensure that brokers finally play by the rules. “We appreciate that FMCSA incorporated input from our petition, including a requirement to make records available electronically and emphasizing that brokers have a duty to comply with regulations. As FMCSA noted, broker transparency is necessary for a fair, efficient transportation system, and is especially important to help carriers defend themselves against alleged claims on a shipment,” OOIDA President Todd Spencer said in a statement.
Additional pushback came from the Small Business in Transportation Coalition (SBTC), a network of transportation professionals in small business, which said the potential rule didn’t go far enough. “This is too little too late and is disappointing. It preserves the status quo, which caters to Big Broker & TIA. There is no question now that FMCSA has been captured by Big Broker. Truckers and carriers must now come out in droves and file comments in full force against this starting tomorrow,” SBTC executive director James Lamb said in a LinkedIn post.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.
Progress in generative AI (GenAI) is poised to impact business procurement processes through advancements in three areas—agentic reasoning, multimodality, and AI agents—according to Gartner Inc.
Those functions will redefine how procurement operates and significantly impact the agendas of chief procurement officers (CPOs). And 72% of procurement leaders are already prioritizing the integration of GenAI into their strategies, thus highlighting the recognition of its potential to drive significant improvements in efficiency and effectiveness, Gartner found in a survey conducted in July, 2024, with 258 global respondents.
Gartner defined the new functions as follows:
Agentic reasoning in GenAI allows for advanced decision-making processes that mimic human-like cognition. This capability will enable procurement functions to leverage GenAI to analyze complex scenarios and make informed decisions with greater accuracy and speed.
Multimodality refers to the ability of GenAI to process and integrate multiple forms of data, such as text, images, and audio. This will make GenAI more intuitively consumable to users and enhance procurement's ability to gather and analyze diverse information sources, leading to more comprehensive insights and better-informed strategies.
AI agents are autonomous systems that can perform tasks and make decisions on behalf of human operators. In procurement, these agents will automate procurement tasks and activities, freeing up human resources to focus on strategic initiatives, complex problem-solving and edge cases.
As CPOs look to maximize the value of GenAI in procurement, the study recommended three starting points: double down on data governance, develop and incorporate privacy standards into contracts, and increase procurement thresholds.
“These advancements will usher procurement into an era where the distance between ideas, insights, and actions will shorten rapidly,” Ryan Polk, senior director analyst in Gartner’s Supply Chain practice, said in a release. "Procurement leaders who build their foundation now through a focus on data quality, privacy and risk management have the potential to reap new levels of productivity and strategic value from the technology."
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.