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Much needed win-win

February 2, 2009 By: Darren Constantino, North Coast Media Pit & Quarry


Just when we needed it, it’s coming together: an economic stimulus package that should help to begin lifting the nation out of a financial crisis, while providing a shot-in-the-arm to America’s infrastructure and our industry. As the U.S. House of Representatives was preparing to vote on the stimulus package, the American Society of Civil Engineers (ASCE) released its annual report card on the nation’s roads, water and other public works. It was the kind of grade I didn’t dare bring home to my parents as a kid. It was a D. And roads, specifically, received a D-.

The House passed the stimulus bill as we went to press, and reports are that a completed bill could be on the president’s desk by mid-February. Of that money, about $150 billion would go to fixing the country’s infrastructure.

“Our leaders are looking for solutions to the nation’s current economic crisis,” said ASCE President Wayne Klotz. “Not only could investment in these critical foundations have a positive impact, but, if done responsibly, it would also provide tangible benefits to the American people, such as reduced traffic congestion, improved air quality, clean and abundant water supplies and protection against natural hazards.”

It would also help the aggregates industry.

Market Insights Webcast

And while the infrastructure is in desperate need of repair, the economy is in desperate need of a stimulus – something to get the money moving. In a 2009 Market Insights Webcast on the outlook for construction and materials, Jim Haughey, chief economist for Reed Construction Data, said the overall economy will bottom out in late summer or early fall of this year. And construction spending, he said, should bottom out in the third quarter, then begin rising.

Ken Simonson, chief economist for The Associated General Contractors of America, added, “We have to get a new highway authorization bill passed.” Simonson said the outlook for the highway program is “pretty shady,” and infrastructure spending in the stimulus bill is only a short-term solution for highways.

So step one – the short-term fix – is a stimulus package. Step two – the long-term answer – is reauthorization of a strong transportation funding bill, which is on the table later in the year. .

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