Infrastructure

This is of particular concern for the manufacturing industry, which relies heavily on infrastructure. The National Association of Manufacturers (NAM), in its 2014 report titled Catching Up, points out that the ability to safely and efficiently move goods from a manufacturing facility to a customer located far away is crucial to the manufacturing industry’s long-term health and global competitiveness. It was ranked one of the top drivers of competitiveness by global manufacturing executives. The overall quality of infrastructure also plays an important role in the determination of cost and process efficiencies and productivity.

The costs associated with infrastructure in its current state are staggering. Take roadways, for example. In 2011 alone, congestion on American roadways was responsible for an extra 5.5 billion hours on the road and 2.9 billion gallons of fuel for a total cost of $121 billion. More optimistically, NAM also determined that for every $1 generated by the manufacturing industry, $1.81 of economic output occurs. A revitalized American infrastructure system can help manufacturers lower their operating costs, untangle logistical issues and, critically, increase profitability. In that effort, BASF engages with lawmakers and stakeholders in support of policies that focus on repairing deficient roads and bridges, reducing congestion, making buildings more resilient and improving aspects of environmental health that are associated with transportation. Infrastructure plays a critical role in our company’s decision to locate and expand manufacturing facilities and other sites.

Economic growth is rooted in one thing: improvement. By definition, a growing economy is one that is actively increasing its ability to produce goods and provide services. At the heart of this growth are the public works systems that ensure reliable transportation, communication and energy delivery. These systems – waterways, roadways, energy grids and more – are collectively referred to as infrastructure. Every four years, the American Society of Civil Engineers (ASCE) evaluates sixteen different aspects of American infrastructure. Each piece of infrastructure is important on its own, but they are also interconnected. For example, if improvements are needed at our ports, that likely also necessitates changes to our bridges, dams and inland waterways. In 2017, the ASCE published its latest Infrastructure Report Card. America earned a D+. According to the ASCE, a D+ grade indicates that “infrastructure is in poor to fair condition and mostly below standard, with many elements approaching the end of their service life,” the report states. “A large portion of the system exhibits significant deterioration. Condition and capacity are of serious concern with strong risk of failure.” The reason American infrastructure is in such a state is, quite simply, because of costs. The investment required to improve these systems is significant, and many lawmakers are hesitant to pass legislation that requires increased spending.

The American Society of Civil Engineers’ Infrastructure Report Card provides a comprehensive assessment of current infrastructure conditions and needs.

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Visit the Capital Club intranet site or contact Michael Heltzer at michael.heltzer@basf.com.

“For every $1 generated by the manufacturing industry, $1.81 of economic output occurs.”

From roads to waterways to energy – and everything in between – these systems are essential to economic growth

Infrastructure

BY CATHERINE DIAMOND