Construction Firms Lose $23 Billion from Congestion, AGC Finds
U.S. construction firms are facing an estimated $23 billion a year in additional costs due to traffic congestion, according to a survey released by the Associated General Contractors of America.
Nearly 93% of the 1,200 companies surveyed said traffic congestion affects their operations, with 55% of those reporting a “frequent” or “significant” impact.
AGC found that 70% of construction firms were making a quarter less in revenue, with over half of the firms surveyed hiring fewer workers and buying close to $3 million less in equipment, restricting the industry’s stability and growth.
AGC Chief Executive Officer Stephen Sandherr said the industry’s problems with congestion were compounded by the inability of leaders in Washington to come together on a long-term highway bill, an issue he said was AGC’s “top priority.”
The most recent highway bill expired in September, and has been extended several times, most recently through the end of 2010.
The Obama administration and House and Senate leaders have not come together on a highway bill and have been unable to resolve a logjam over how to finance the $500 billion to $600 billion budget Transportation Secretary Ray LaHood believes is required.
