A report issued by the American Road and Transportation Builders Association (ARTBA) says that state departments of transportation and local governments committed a little over $117 billion in funding for highway, bridge, transit, port, and other transportation-related construction projects in 2012.
The 2012 number represents a one percent increase over the $116 billion committed in 2011, but transportation construction activity fell short of its 2010 peak, when $129 billion worth of construction work was “put in place” during the year – largely due to the American Recovery and Reinvestment Act.The report found the following changes in value by mode:
- Highways – Down 4.3 percent to $45.9 billion, compared to $47.9 billion in 2011; this is the only mode that did not experience an increase in construction last year.
- Bridge – Up 4.5 percent to $28.3 billion, compared to $27.1 billion in 2011. The total was a record for bridge construction. The market should also get a short-term boost from repair work on bridges damaged by Hurricane Sandy.
- Airport Runways – Up 14.1 percent to $4.8 billion, compared to $4.2 billion in 2011. The increase is attributed to the enactment of Federal Aviation Administration reauthorization legislation in February 2012.
- Subway and Light Rail – Up 16.7 percent to $6.6 billion, compared to $5.7 billion in 2011.
- Ports – Up 10 percent to $1.6 billion, compared to $1.5 billion in 2011.
- Railroads – Up 7.3 percent to $10.3 billion, compared to $9.6 billion in 2011; private rail is benefiting from the growth of freight shipments, which generates a need for more maintenance.
According to the ARTBA report, transportation construction activity accounted for 13.8 percent of all U.S. construction work, down from 14.6 percent during 2011 and 15 percent in 2010.
Investments are up, but just imagine what local and state governments could do in this area with a strong long term commitment to infrastructure funding and/or financing from the federal government.
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