Tag Archive for 'bridges'

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A Gap In Sustainability In The Paving Industry

A Gap 1 A Gap 12

2016 — You Will Be Living In Interesting Times

Remus  and Mill my best friends, both victims of lymphoma in 2015.

Remus and Mill my best friends, both victims of lymphoma in 2015.

By Greg Sitek

May you live in interesting times” is an English expression purported to be a translation of a traditional Chinese curse. Despite being so common in English as to be known as “the Chinese curse“, the saying is apocryphal, and no actual Chinese source has ever been produced.

The nearest related Chinese expression is “宁為太平犬,莫做亂离人” (nìng wéi tàipíng quǎn, mò zuò luàn lí rén), which is usually translated as “Better to be a dog in a peaceful time, than to be a man in a chaotic (warring) period.” (1)

As you read through the 2016 forecasts in this issue you’ll notice that predictions for the coming year are encouraging because they allude to an overall improvement in the economy: GDP + 2 %(+/-),

Nonfarm unemployment 5 % (+/-); motor vehicle & arts sales kissing $94 billion; US auto production 17 billion in 2015 and 20 billion by 2017, housing starts bumping 1.4 million units (combined) and there’s more goo news. Oh yes, construction, non-residential could be up as high as 4% give or take a point.

A major legislative accomplishment was the passing of the FAST Act (“Fixing America’s Surface Transportation” Act) — a five-year, $305 billion initiative (including $207.4 billion for the federal highway program). It only too something like 10 years and 35 extensions to produce the FAST Act (I wonder if there might be a touch of sarcasm in naming this piece of legislation.)

Unfortunately Congress chose not to replenish the Highway Trust Fund (HTF) by increasing user fees (e.g., increasing the gas tax). Instead, the roughly $70 billion needed to fully fund the FAST Act and supplement the projected five-year HTF shortfall will essentially be a combination of general fund transfers resulting from savings and revenues generated by:

  • Passport revocation for “seriously delinquent” taxpayers
  • Federal Reserve Board dividend payment reduction and surplus account transfer
  • Strategic Petroleum Reserve sale of 66 million barrels of oil
  • Customs fees on airline and cruise passengers
  • Internal Revenue Service hiring private tax collectors
  • Office of Natural Resources Revenue royalty overpayment fix

While five-years of guaranteed funding is welcomed and will restore much needed near-term certainty for transportation construction programs, there is work left to do. AED and other industry organizations will continue to work with lawmakers to identify real and sustainable revenue streams to increase and stabilize the HTF for decades to come.

I remember that time before there was a six-year highway bill when we, the industry, waited for a proclamation of how much money was going to be allocated from the general to cover highway construction. It was the other time when potholes grew fasted than corn. We need a Highway Trust Fund because we can’t depend on our representatives in Washington to keep their promises and provide the funds necessary to maintain and upgrade our highways.

That aside, 2016 is also an election year. What will happen with oil prices? Or, what about gold? Silver? Interest rates? Oh they did go up 0.25% as we approached the end of 2015.

Of course there all the other concerns that we as a nation face – ISIS, terrorism, climate,, education, safety, healthcare, wages, insurance, etc. The list is endless. During an election year we are a nation in flux. Is this good? Or, is this bad? One thing for certain, it is interesting…

(1) Wikipedia (https://en.wikipedia.org/wiki/May_you_live_in_interesting_times)


Life is full of frustrations…

Remus  and Mill my best friends, both victims of lymphoma earlier this year.

Remus and Mill my best friends, both victims of lymphoma earlier this year.

By Greg Sitek

One of my frustrations is that the two proposed highways bills – House Bill and Senate Bill – are currently in the congressional blender, committee review where the differences will be discussed argued and resolved with a compromise.

While there are several variances between the House-passed STRR (Surface Transportation Reauthorization & Reform) Act and the Senate approved DRIVE (Developing a Reliable and Innovative Vision for the Economy) Act, lawmakers in both chambers and from both sides of the aisle are confident agreement will be reached, hopefully, in short order. The most difficult issue is the final bill’s duration and investment amounts. Some conferees are advocating for a longer authorization at current funding levels and others are urging a program size increase for a shorter time period.

Senate and House leadership are committed to disposing with final highway bill action before turning attention to the omnibus appropriations bill. Government funding expires on Dec. 1. However, with the highway program’s current authorization expiring on Nov. 20, Congress is poised to approve another short-term extension until Dec. 4.

By the time you read this a bill will be passed – Maybe.

Transportation for America says:
15 months after MAP-21 was first extended in July 2014 and four short-term extensions and $18.9 billion in general fund transfers later, a select group of House and Senate leaders met y to begin ironing out the differences between each chamber’s bill in the hopes of passing a final version within the next few weeks. So where does each bill stand on key issues?

Both House and Senate bills largely represent three (or possibly six) more years of the status quo, doubling down on today’s outdated system for investing in transportation that shortchanges innovation and leaves local communities behind.

They’re willing to back that bet with as much as $85 billion of general taxpayer funds above and beyond the expected revenues from the gas tax.

We’ve put together a handy chart comparing the two bills on 11 key provisions or priorities like funding, greater local control, transit, TIGER, multimodal freight planning and funding, and others. Though there are a handful of policy improvements, some other areas take a clear step backwards from MAP-21.

Unfortunately, there’s little chance to further improve the final bill on most of our key priorities at this point, but we are keeping a close eye on discussions in the conference committee. Stay tuned with us on Facebook or Twitter for more updates as the negotiations continue.

Well, I was hoping to wish you a Merry Christmas and Happy New Highway Bill Year but that’s not to be. You’ll have to settle for a simple Merry Christmas and Happy New year to you and your families and friends.

Meanwhile to keep pace with things happening in the industry and to the highway bill, visit: www.site-Kconkstructionzone.com or scan (insert Site-K QR code) with your smart phone.

Bumpy Roads Ahead

Bumpy Roads Ahead 1 Bumpy Roads Ahead 2

Gary Godbersen, GOMACO President and CEO, Receives Highest Honor
For Concrete Paving From ACPA

Gary Godbersen, GOMACO President and CEO, was the 2015 recipient of the prestigious Hartmann-Hirschman-Egan Award from the American Concrete Paving Association (ACPA). The presentation was at the ACPA’s 52nd Annual Meeting in Bonita Springs, Florida, Friday, December 4.

Gerald Voigt (left), President and CEO of the ACPA, introduces Gary Godbersen, GOMACO President and CEO, at the ACPA annual meeting.

Gerald Voigt (left), President and CEO of the ACPA, introduces Gary Godbersen, GOMACO President and CEO, at the ACPA annual meeting.

This award has been presented annually since 1968 to the most elite members of the industry. This is the first time a father and son have received the award. Harold Godbersen was honored posthumously in 1991.

In a letter from Gerald Voigt, President and CEO of the ACPA, he stated, “This award recognizes individuals and organizations for unparalleled commitment, dedication, participation, and leadership in the concrete pavement community.

“Your selection as the recipient for 2015 recognizes your long-time support for the American Concrete Pavement Association, dating back 30 years. It also pays tribute to your vision and innovation in concrete paving equipment that has triggered advancement in all areas of slipform pavement construction and the equipment to support our industry.

Godbersen is also a member of the AEM Hall of Fame: https://www.aem.org/HallOfFame/HallOfFamers/Bio/?I=18