Skip to content
Search AI Powered

Latest Stories

fastlane

The continuing infrastructure fiasco

Eight in 10 Americans support infrastructure spending. So why can't our leaders get it together?

It's been all talk and no action when it comes to fixing the nation's infrastructure. Despite a spate of articles, calls for action, and attempts at legislative fixes, we seem to be no closer to a solution than we were 10 years ago.

In 2012, President Obama signed into law the "Moving Ahead for Progress in the 21st Century" Act (MAP-21), which provided funds for highway expansion. But that ultimately proved to be more of a patch than a solution. Part of the problem was a lack of a comprehensive plan and funding mechanism. Although he discussed infrastructure numerous times, President Obama seemed to view the issue largely as a job creation opportunity. It was a flashback to 1936, when Franklin D. Roosevelt created the Works Progress Administration (WPA), which provided jobs for several million Americans. During the WPA's eight years in existence, WPA laborers built 651,087 miles of highways and roads, built or repaired 124,031 bridges, and constructed thousands of other public facilities. The problem then, as now, was that there was no comprehensive plan, other than to put people to work.


So when President Trump hinted that he'd make a big infrastructure announcement in his Feb. 28 address to Congress, we pricked up our ears. During the campaign, he had repeatedly vowed to address the problem, and we were looking forward to hearing about his plans. But in the end, we were disappointed. In a speech that devoted only 139 of 5,006 words to this critical issue, Trump simply restated what he has said before: "I will be asking Congress to approve legislation that produces a $1 trillion investment in the infrastructure of the United States ... creating millions of new jobs. Crumbling infrastructure will be replaced with new roads, bridges, tunnels, airports, and railways gleaming across our beautiful land." As for financing, he is proposing that the work be funded through public/private partnerships (referred to as P3s). That, of course, translates to "tolling our interstates," which is currently illegal (the practice was banned under the legislation that authorized the interstate highway system in 1956).

Concurrently with all this, Congress has refused to raise the fuel tax, which has not been adjusted in 24 years. Most industry organizations and experts, including the American Trucking Associations and the U.S. Chamber of Commerce, have advocated for an increase, but congressional leaders apparently would rather have a root canal than raise fuel taxes. This is in spite of the fact that recent surveys have shown that 79 percent of adult Americans approve of infrastructure spending.

In the meantime, several states have raised their fuel taxes to pay for their own projects. On March 2, the U.S. Conference of Mayors also weighed in on the subject, pressing the federal government to distribute infrastructure funds directly to cities, bypassing the states. In short, the entire problem has gotten out of control. There still is no sign of an overall plan for the needed improvements. And the funding issue is far from resolved. Many of our needs will not be attractive to investors. And even if private investors step up to finance specific road and bridge projects, they will have to be repaid, which means the costs will ultimately be passed on to users. We could easily find ourselves paying tolls and user fees, plus increased state taxes, leaving us in a worse position than we would have been in if Congress had simply raised fuel taxes in the first place.

And as far as the "new roads, bridges, tunnels, airports, and railways gleaming across our beautiful land," good luck with that one.

The Latest

More Stories

Trucking industry experiences record-high congestion costs

Trucking industry experiences record-high congestion costs

Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.

The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.

Keep ReadingShow less

Featured

From pingpong diplomacy to supply chain diplomacy?

There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.

Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”

Keep ReadingShow less
forklift driving through warehouse

Hyster-Yale to expand domestic manufacturing

Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.

That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.

Keep ReadingShow less
map of truck routes in US

California moves a step closer to requiring EV sales only by 2035

Federal regulators today gave California a green light to tackle the remaining steps to finalize its plan to gradually shift new car sales in the state by 2035 to only zero-emissions models — meaning battery-electric, hydrogen fuel cell, and plug-in hybrid cars — known as the Advanced Clean Cars II Rule.

In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.

Keep ReadingShow less
screenshots for starboard trade software

Canadian startup gains $5.5 million for AI-based global trade platform

A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.

The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.

Keep ReadingShow less