Thank you for joining us today to take a fresh look at the state of America s infrastructure.

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1 Thank you for joining us today to take a fresh look at the state of America s infrastructure. 1

2 Although we all know that infrastructure means roads and bridges, it means so much more to us as individuals and to our communities. When we talk about infrastructure, we re also talking about many of things we want and need Good Jobs A Vibrant Economy A Sustainable Environment Health and Safety Amazing Cities Great Parks The Ability to Travel and hopefully, a great lifestyle. Infrastructure is not just one thing but a network of systems and environments that connect us which is why it is so important to take stock from time to time of how our country is upkeeping and modernizing the infrastructure we depend on. Like you go to the doctor for a check up, our infrastructure also needs a check up. As you may know, every four years a team of ASCE engineers evaluates the conditions and investment needs for 16 major sectors of infrastructure including roads, bridges, drinking water systems, mass transit, the electric grid and put these grades into an easy to understand format that you ll remember from your school days the Report Card. We do this so that anyone from the average citizen to your Congressman can understand the currentstate of our infrastructureandand what needs their attention. 2

3 Today, I m hear to tell you that our overall GPA in ASCE s 2013 assessment of the nation s infrastructure earned only a D+. While the D+ is actually slightly up from a D in 2009 due to a short influx of infrastructure investment from both the public and private sectors, we continue to see categories of infrastructure that simply are not seeing the maintenance or investment to improve day to day performance and save money in the long term. The backlog of projects to maintain and modernize our infrastructure keeps growing. Two of the categories we evaluated received a near failing D grade levees and inland waterways. However, the good news is that six sectors saw improvements since In spite of the bad grades in many sectors, there are a few bright spots. There were noticeable and tangible improvements in six of the sectors we evaluated Roads Bridges Solid waste Drinking Water Wastewater Railroads Communities across the country are collaborating to address some of their most critical infrastructure challenges. We saw greater private investment in several categories, targeted efforts led by cities and states, and several categories benefited from short term boosts in federal funding. In 2013, we face a total investment need of $3.6 trillion between now and 2020 across 16 infrastructure sectors. We re already prepared to invest about two thirds, but we face a funding shortfall of $200 billion per year for infrastructure, actually a slight decrease from four years ago. To highlight a few of the sectors: Bridges moved up to a C+ as the number of structurally deficient bridges is on the decline. Many of our bridges were repaired and improved thanks to coordinated efforts by cities and 3

4 With our analysis based on current investment trends and expecting funding levels, no sector is meeting its full potential there are significant investment gaps, or funding shortfalls, in every sector by the year 2020: For airports, the gap is $39B Marine ports and Waterways: $16B Transportation, which includes roads, bridges and transit, has the largest funding shortfall at a whopping $846B Electricity: $107B Finally, Drinking Water and Wastewater faces a shortfall of $84B by 2020 While it s tempting to assume that we should just address the largest funding gap first, one of the most important takeaways from this report is that all of our infrastructure is linked. We have to think of it as a working system, each with a significant role to play. Goods move from manufacturing facilities across the country via highways or rail to coastal ports for exports. Wastewater treatment plants are some of the largest consumers of electricity. Without investing in each infrastructure sector, we will continue to experience a drag on economic growth that comes with deficientinfrastructureconditions. infrastructure conditions. 4

5 Here we can see some of the more specific economic impacts by 2020 to business, jobs, and the overall economy. For the most part, this isn t something dramatic you will notice overnight, but a gradual worsening of conditions over time. Your commute will become less reliable, your shipments will take longer. You may experience more electrical outages and water issues. And these things cost us something. Each of our preceding reports focusing on various infrastructure sectors demonstrated a common theme deteriorating infrastructure has a cascading impact on the nation s economy, negatively affecting business productivity, gross domestic product (GDP), employment, personal income, and international competitiveness. Note that job losses depicted here are in the year 2020 alone, while the other totals are cumulative. If we don t invest now, we all end up paying more in the long run. 5

6 However, there is a tremendous opportunity to gain from investments today. If we challenge the shortfall of some of our major infrastructure types with about $150 billion a year, we can prevent all of these effects by 2020: A projected loss of $3.1 trillion in GDP, almost the equivalent of the 2011 GDP of France A $1.1 trillion decline in U.S. trade value, equivalent to Mexico s GDP A loss of 3.5 million jobs in the year 2020 alone A $2.4 trillion decline in consumer spending, comparable to Brazil s GDP A drop of $3,100 in disposable income per year, per household And while the investment needed may seem daunting, the real story of these recent reports is that we can t afford not to. 6

7 The Report Card s conclusions are sobering, but this is not a problem without an answer. This is a question of priorities. The link between a nation s infrastructure and its economic competitiveness has always been understood. But now we have data showing how failing to invest in our infrastructure systems can negativelyimpactjob impact growth andfamilybudgets budgets. Unless we increase the level of investment in our infrastructure, in less than a decade our nation will face mounting job losses, falling wages, and a drag on American businesses that will keep our economy stuck in the slow lane. 7

8 For the first time in years, the Report Card GPA is finally trending up, and in order to keep that momentum, we hope you will join us in doing 3 things: First, put the Report Card in your pocket the 2013 Report Card is now an app for your smartphone or tablet so that it s an easy reference if you are talking to an elected official or want to have some easy to use talking points on infrastructure. Second, the next time you have a chance to talk to your elected official, ask what infrastructure improvements your area needs and what are they doing to fix them. Simply by asking, we imply that it is important and needed. Third, be apart of the conversations that are already happening to support infrastructure. You can always start with sharing the Report Card since every page of the new app is shareable to most social networks. Another way to engage is to join in a local coalition effort that is already advocating for a specific infrastructure improvement. Thank you for having me here today. You can find the app and more information that t we could cover here at infrastructurereportcard.org. If you have any questions, please feel free to us at reportcard@asce.org! 8