American’s infrastructure has been failing for quite some time.
One look at the countless potholes, congested roads, derailed trains, collapsed bridges and dams is proof enough. Just to fix it all could cost as much as $3.6 trillion by 2020, says the American Society of Civil Engineers (ASCE).
What’s worse, the ASCE just gave current U.S infrastructure a D+ rating. Even the Federal Transit Administration (FTA) has estimated that there’s an $808.2 billion backlog in deferred maintenance on the nation’s rail and bus lines.
Yet, federal spending on infrastructure has fallen 9% in the last 10 years.
The American Road and Transportation Builders Association says 56,000 bridges in the U.S. are “structurally deficient.” The U.S. Department of Transportation, more than two-thirds of our roads are “in dire need of repair or upgrades.”
“Decades after building-out the core of our infrastructure, much of it is in urgent need of repair, expansion, and modernization,” according to the White House. “Without continued investment and maintenance, America’s infrastructure will continue to age, deteriorate in quality and performance, and gradually contribute less to American economic output.”
That’s incredibly bad.
However, we may soon see the beginnings of a potential fix.
A $2 Trillion Plan in the Works
Democratic Congressional leaders and the President are now aiming for a $2 trillion package. While the two sided didn’t discuss how it would be paid for, it’s a step in the right direction.
“I like the number you’ve been using, Nancy,” Mr. Trump told House Speaker Nancy Pelosi (D., Calif.), as quoted by The Wall Street Journal. “Two trillion.”
Should we see progress on a potential bill, it could open a world of opportunity.
The play could very well boost investment for projects in rural America — including transportation, water, waste, power, flood management and ports. That’s just part of the reason that related stocks, such as U.S. Steel (X), U.S. Concrete (USCR), Vulcan Materials (VMC) and Jacobs Engineering (JEC) could enjoy sizable upside.