Issue link: https://read.dmtmag.com/i/279349
I DA U N I V E R S A L M a rc h -A p r i l 2 0 1 4 41 TRENDS AND TIDBITS continued from page 17 President Obama wants lawmakers to approve a sur- face transportation package valued at over $300 billion. e White House says that the new funding would "mod- ernize our nation's infrastruc- ture and ensure the health and growth of these critical programs for the future, while supporting millions of jobs." e breakdown of the spending proposalincludes: • $206 billion to invest in our nation's highway system and road safety. e proposal will increase the amount of highway funds by 22 percent annually, for a total of about $199 billion over four years. e proposal would also pro- vide more than $7 billion to improve safety for all users of our highways and roads. • $72 billion to invest in transit systems and expand trans- portation options. e pro- posal increases average transit spending by nearly 70 percent annually, for a total pro- gram of $72 billion over four years, which will enable the President Obama Wants Billions in New Transportation Spending expansion of new projects (e.g., light rail, street cars, bus rapid transit, etc.) in suburbs, fast-growing cities, small towns, and aging rural com- munities, while still maintain- ing existing transit systems. • $19 billion in dedicated funding for rail programs. e proposal also includes near- ly $5 billion annually for high performance and passenger rail programs, with a focus on improving the connec- tions between key regional city pairs and high traffi c corri- dors throughout the country. • $9 billion in competitive funding to spur innovation. e proposal will make per- manent and provide $5 billion over four years, an increase of more than 100 percent, for the highly successfully TIGER competitive grant program and propose $4 bil- lion of competitively awarded funding over four years to in- centivize innovation and local policy reforms to encourage better performance, produc- tivity, and cost-eff ectiveness in our transportation systems. Obama warned that federal highway funding is set to dry up later this summer, and asked Congress for $63 bil- lion to address that expected shortfall. e authorization for federal transportation funding expires at the end of September. "It is obvious the urgent need to fi x the Highway Trust Fund is on the radar screen of the White House and leaders in the House and Senate from both parties," says ARTBA President & CEO Pete Ruane. In order to off set the cost of all the new spending, Obama recycled an old idea to reform the business tax code in a "pro-growth" man- ner. Doing so, he said, would generate $150 billion, or about half of what the Highway Trust Fund is expected to be over the next four years. e problem will be get- ting Congress to act on tax reform before the elections in November. House Ways and Means Committee Chairman Dave Camp (R-Mich.) unveiled his comprehensive plan to overhaul the country's tax code, but it's being met with more skepticism than support, due to its extensive nature. "We are encouraged by both President Obama's proposed four-year, $302 bil- lion transportation bill and Ways and Means Chairman Dave Camp's proposal to dedicate $126.5 billion to the Highway Trust Fund," says the American Association of State Highway and Transportation Offi cials' Executive Director Bud Wright. If Congress fails to act, Obama announced that he is making $600 million in TIGER (Transportation Investment Generating Eco- nomic Recovery) grants avail- able to fund projects across the country. e grant, which has paid out $3.5 billion so far, was established in the 2009 stimulus law, and renewed in the 2014 budget that Obama signed in January. ● Feb 26, 2014 Source: Talk Radio News Service and Minneapolis Star-Tribune Exports of U.S.-made construction equipment dropped 25% in 2013, compared to the previous year, for a total of $20 billion shipped to global markets, according to the Associa- tion of Equipment Manufacturers (AEM), citing U.S. Commerce Dept. data it uses in trend reports for members. All world regions recorded declines. AEM noted that the 25% decline for 2013 follows three years of export growth (13% in 2012, 43% in 2011 and 28% in 2010), a er a 2009 decline of 38% in the depths of the recession. • Exports to Europe declined 19% for a total of $2.6 billion, and dropped 16% to Canada for a total of $6.8 billion • Exports to Asia decreased 33% to $2.1 billion Exports of U.S.-Made Construction Equipment Decline 25% in 2013 to $20 Billion • Exports to Central America dropped 2% to $2.2 billion, with exports to South America declining 22% to $3.6 billion • Australia/Oceania's export purchases decreased 66% to $1.3 billion, while exports to Africa dropped 13% to $1.3 billion e top export destinations for American-made construction machinery in 2013 by dollar volume: (1) Canada - $6.8 billion, down 16%; (2) Mexico - $1.8 billion, down 1%; (3) Australia - $1.2 billion, down 68%; (4) Chile - $999 million, down 40%; (5) Brazil - $890 million, down 0.005%; (6) South Africa - $674 million, down 25%; (7) Peru - $638 million, down 18%; (8) Belgium - $617 mil- lion, down 24%; (9) Colombia - $562 million, up 1%; (10) Russia - $548 million, down 23%; (11) China - $380 million, down 44%. ● www.forconstructionpros.com, Feb 2014 Trends continued on page 51