Better Roads Digital Magazine
Issue link: https://read.dmtmag.com/i/86539
RoadWorks Stuck in Slow Inside the highway and bridge industries here has been no "bump" yet from the new surface trans- portation legislation, MAP-21, says Alison Premo Black, American Road and Transportation Builders As- T Memphis in September, Black suggested that actual spending on highways may fall as the year goes on. Black sees MAP-21 offering "some stability," but also argues that nominal in- creases will be eaten away by inflation and rising project and material costs. But, as Black points out, there are no earmarks in MAP- 21, an expanded TI- FIA promises more private funding and there are project de- livery time reforms sociation (ARTBA) senior economist and policy VP. At ARTBA's national convention in SayWhat? "We've got to figure out other ways. For example, I drive a hybrid car and I get about 50 miles to the gallon, I'm not paying my fair share at all. If I get an electric car, I won't pay anything." — Senator Barbara Boxer, talking to Politico about Highway Trust Fund income. waiting to kick in. When it comes to state and local budgets, Black sees marginal improve- ments in revenues, "but not enough to move the needle in 2012 or 2013." There is, she says, "still a gap of $55 billion between state revenues and com- mitments." But, says Black, some states are at least ac- tively tackling the revenue question with possible new income streams, and some states are actually showing growth. States remain in a battle to try and lower spending, a fight not likely to be quickly over, she says. Buried ominously in the heart of her analysis of the numbers is a pre- diction that the highway market con- tinues to struggle, possibly continu- ing to decline before any noticable climb out, something Black says may be in the 2015 or 2016 cards. And yet bridge markets are show- ing surprising strength and we could see a record year. Perhaps not so sur- prising as bridges, which take so long to build, usually show an upswing with new surface transportation bills. Looking at the real value of pave- ment work, Black says there is "quite a bit" of pullback in the market YTD and a pace that looks a lot like last year, which may be good news to many. Contractors, according to an ARTBA survey, are still not optimistic about the future market, and capacity num- bers are not encouraging, making un- employment decreases less likely. Better Roads October 2012 5 by John Latta