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Infrastructure Spending Is Slow

Mike

Well-known member
What happened to all of the "Shovel Ready" projects in the waiting? :roll:



Highway spending isn't the stimulus it was envisioned to beOnly a third of the 5,600 road projects approved by Washington under Obama's Recovery Act have been given the go-ahead for construction.
Los Angeles Times/Business
By Don Lee
July 20, 2009
Reporting from Washington -- In February, when Congress approved President Obama's mammoth plan to stimulate the economy, transportation projects were supposed to be among the fastest-acting pieces of the $787-billion package.

All 50 states moved quickly to qualify for their share of the money. But since then the pace has slowed considerably, particularly in California and Florida, where the effect of the economic crisis has been especially severe.

As of July 10, more than 3,600 of the 5,600 road projects approved by Washington -- including six of the 10 largest approved projects -- had not been given the green light to start construction.

"What we're seeing is a significant level of bidding activity," said Anne Lloyd, chief financial officer at Martin Marietta Materials, a nationwide supplier of stone, asphalt and other construction supplies. "But the big thing we're not seeing is work on the ground."

The reasons are many. One is the time needed to get heavy equipment and crews ready for jobs. Also, overburdened state officials have sometimes had trouble sustaining the early momentum.

Even where projects have begun, they haven't always brought with them as big a burst of hiring as might be expected.

In southern Louisiana, engineer Kevin Charrier is leading construction of a $33-million, 160-foot-long bridge across Bayou Lafourche to replace a pontoon bridge long considered unsafe. The project, he said, is benefiting the entire local economy.

"It's definitely a blessing," Charrier said. "We're using the hardware store in the community. We're buying ice from the local icehouse. We're paying local truckers to haul off busted trees."

Yet Charrier hasn't yet hired any new people. Rather, he's brought on an initial crew of about a dozen veterans from another job nearby.

"If we have people who have experience, we would rather work them overtime," he said, "not that we don't want to train or hire new people."

The U.S. Department of Transportation estimates that stimulus-funded highway projects directly saved or created as many as 6,000 jobs through May, the latest month for which the department has data.

Federal and state officials expect the pace of construction -- and hiring -- to pick up substantially in coming months.

If they don't, that will only sharpen the howling from critics who, focusing on the soaring unemployment rate, say Obama's economic stimulus package isn't working.

The allocation for transportation projects is a tiny part of the stimulus bill's overall spending, but it's one of the most powerful in terms of potential economic impact per dollar. The White House calculates that every $1 billion spent on highway work will create 11,000 jobs, directly or indirectly. Private estimates are as high as 35,000 jobs per $1 billion.

And the progress of highway projects is seen as an important symbolic measure of whether Obama's American Recovery and Reinvestment Act is succeeding.

Lawrence H. Summers, the president's top economic advisor, said the program shouldn't be judged by short-term results.

"Given lags in spending and hiring," he said Friday, "the peak impact of the stimulus on jobs is expected not to be achieved until the end of 2010."

Contractors, especially in northern states, worry that if things don't move faster, they'll have to wait until next spring because of the onset of cold weather. For some, it's already too late.

On June 12, Vice President Joe Biden went to Michigan -- the state with the highest unemployment -- for a groundbreaking ceremony for a $43-million project to rebuild part of Interstate 94.

"We are quite literally repaving the road to recovery right here in Kalamazoo," Biden was quoted as saying, with an unemployed construction worker near his side.

But construction won't really get going until next April. Jeff Stover, a project manager at Walter Toebe Construction, said he had to wait until 5 million pounds of steel were delivered.

"It has been a little frustrating," Stover said. "We would have liked to get right into this job, but . . . the schedule didn't allow it."

In many other cases, contractors are still waiting for officials to put approved works up for bids. States typically advertise projects for three weeks and then select the winning bid two weeks later.

On May 1, the Recovery Act's single largest highway project was awarded to California -- $192 million to build a two-lane tunnel on State Route 24 in Oakland. Caltrans has been advertising for bids since May 18.

"This is a very complex and detailed project," Caltrans spokesman Benjamin DeLanty said.

Another big California project -- $128 million for the addition of carpool lanes on Interstate 215 in San Bernardino County -- was approved on the same day as the Oakland tunnel. But DeLanty said that wouldn't be advertised for bids until Thursday.

Asked whether California's budget crisis had affected progress, he said, "In terms of hours that are available, we have been on an overall decrease."

California, which has implemented involuntary furloughs for public employees, isn't the only state cutting back on hours and jobs -- indirectly reducing the ability to move quickly on stimulus projects.

"Just at a time when you need more people familiar with getting contracts out and when you need to put designs in the pipeline, those personnel are missing," said Ken Simonson, chief economist at the Associated General Contractors of America in Arlington, Va.

Some states are lagging badly behind.

In Florida, not a single highway project had been given the go-ahead to start construction by July 10 -- even though the state, with an unemployment rate of 10.6%, had 272 projects valued at more than $1 billion approved by the federal government.

Dave Lee, the administrator in the policy office of Florida's Department of Transportation, said four projects were approved after July 10.

Florida was actually one of the earliest states to submit highway projects for funding under the Recovery Act. Asked what happened after that, Lee paused for a long while before saying, "We're all trying to do the best we can."

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MsSage

Well-known member
you mean you have to wait on the bids and then the supplies to be ordered and shipped? BUT WAIT OT said as soon as the bill passed work started on some local jobs...........
 
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Anonymous

Guest
MsSage said:
you mean you have to wait on the bids and then the supplies to be ordered and shipped? BUT WAIT OT said as soon as the bill passed work started on some local jobs...........

Depends on if you live in a progressive state- or one still back in the 1850's... :wink:
Many of these jobs were let thru the state government...
 

MsSage

Well-known member
Oldtimer said:
MsSage said:
you mean you have to wait on the bids and then the supplies to be ordered and shipped? BUT WAIT OT said as soon as the bill passed work started on some local jobs...........

Depends on if you live in a progressive state- or one still back in the 1850's... :wink:
Many of these jobs were let thru the state government...
OH COME ON tell me HOW you can get steel ordered and delivered in less than 3 days? I know for a fact it takes 2 weeks to get the order ready to be filled then depending on what type and how much, anywhere from 4-8 weeks for the steel to be readied and cut. Then you have to get the shipping ...lets see most are made in the southeast and to ship to Mt takes a couple days to a couple weeks depending on how many trucks are in the area.
Please I might not use big words and type all flowery but I am NO FOOL.
Those jobs were already in the works and had the bill been voted down would have started anyways.
 
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Anonymous

Guest
MsSage said:
Oldtimer said:
MsSage said:
you mean you have to wait on the bids and then the supplies to be ordered and shipped? BUT WAIT OT said as soon as the bill passed work started on some local jobs...........

Depends on if you live in a progressive state- or one still back in the 1850's... :wink:
Many of these jobs were let thru the state government...
OH COME ON tell me HOW you can get steel ordered and delivered in less than 3 days? I know for a fact it takes 2 weeks to get the order ready to be filled then depending on what type and how much, anywhere from 4-8 weeks for the steel to be readied and cut. Then you have to get the shipping ...lets see most are made in the southeast and to ship to Mt takes a couple days to a couple weeks depending on how many trucks are in the area.
Please I might not use big words and type all flowery but I am NO FOOL.
Those jobs were already in the works and had the bill been voted down would have started anyways.

Several of the highway jobs up here had it all ordered last fall or winter- just waiting for the money and go ahead to start...But they would not have started without the federal money- as the states didn't have the money to fund them...

You are right about some of the steel and raw materials needed...One local school project will not be able to start for about another month because they are having problems getting the red steel...But that is good- that means demand for the steel is outrunning supply- and someone has to be working producing it....

You all keep forgetting- the stimulus/jobs bill main impact was set up over a 2 year period- and we aren't even 6 months into it....Bush took 8 years bankrupting this country- it isn't going to be fixed overnight....
 

MsSage

Well-known member
How is the school project going to start in a month with winter coming on?
you cant pour concret in cold weather.

It was touted as an quick fix ...2 years is NOT a quick fix.
Dont go blaming Bush...my GAWD can yo not have a debate and leave him out? really it goes back farther than Bush. I will admit some is Bushs fault but there is PLENTY of blame to go all around. lets quit trying to fix blame and find out where we really need to be and HOW TO FIX this problem without losing our liberties. We also have to make sure we dont over correct and send ourselves into a total depression. If you really look around we are almost there now.
 

backhoeboogie

Well-known member
Oldtimer said:
You all keep forgetting- the stimulus/jobs bill main impact was set up over a 2 year period- and we aren't even 6 months into it....Bush took 8 years bankrupting this country- it isn't going to be fixed overnight....

You keep bringing up this two year yarn. In less than 6 months Obama said his information sources weren't sufficient. He must be quicker with a hot horseshoe than you are OT.

Bush again huh! Tell us more please. The American public is sick of hearing that and every time you bring it up you do more for the Republican cause than any Republican could ever do. Tell us MORE!! :D :D Get Frankie in on this discussion too!
 
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Anonymous

Guest
MsSage said:
How is the school project going to start in a month with winter coming on?
you cant pour concret in cold weather.

.

Yep- definitely a Texan... :roll: :wink: :lol: :p Its only July- we usually don't get our first frosts til in September- and I've seen concrete poured outside in December or January- and building projects go year around....In fact a lot of the construction outfits around here plan their projects to get the outer work done before the real cold sets in- so they can do the inner work all winter long....
 

MsSage

Well-known member
backhoeboogie said:
MsSage said:
Yep- definitely a Texan...
Sorry I am NOT a Texan.....I am a North Carolinian thank you very much :wink: :p :p :D

We'll claim you for Texas just the same.
LOL well thank you, but I am sure not all texasn's feel the same ;)

Contractors, especially in northern states, worry that if things don't move faster, they'll have to wait until next spring because of the onset of cold weather. For some, it's already too late.
Here is a contractor who is saying they will have to wait till spring....OK its in the north BUT is the north cold and the Mt cold different? :wink:
Hail to me, cold is below 60 degrees....... :lol: :lol:
 
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Anonymous

Guest
Sandhusker said:
"You all keep forgetting- the stimulus/jobs bill main impact was set up over a 2 year period- "

Is that how it was presented?

Yep.....To those that listened... :wink:
 

MsSage

Well-known member
"Today does not mark the end of our economic troubles," Obama said today at the Denver Museum of Nature and Science. "Nor does it constitute all of what we must do to turn our economy around. But it does mark the beginning of the end – the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs; to provide relief for families worried they won't be able to pay next month's bills; and to set our economy on a firmer foundation, paving the way to long-term growth and prosperity."
Sorry paying next month's bill is not a 2 year wait........

He kept hinting it was a longer but also used spin to make the "masses" think is was right now.......
How many on here SAID it was not a quick fix.....that it was far out not RIGHT NOW.
 

TexasBred

Well-known member
Oldtimer said:
Sandhusker said:
"You all keep forgetting- the stimulus/jobs bill main impact was set up over a 2 year period- "

Is that how it was presented?

Yep.....To those that listened... :wink:

BUT the immediate impact would be to stop unemployment from going above 8.5%....(per barracko).
 

Sandhusker

Well-known member
This in no way shape or form was presented as a 2-year deal. It was thrown at us as something that to be done NOW or the earth was going to explode.

This two-year deal is the latest excuse dujour by the libs for a program that was doomed to fail, and wa-la, it's failing. Excuse 1 was "We misjudged the economy", excuse 2 was "We had incomplete information", and now "Oh, it was a 2 year deal". :roll:

Just a continuation of the liberals total lack of personal responsility. Two years from now when this porkulus has slid even further into failure, we'll be hearing "It was a 4 year deal", "We need time for this to work", or the hole card, "It was Bush's fault".
 
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Anonymous

Guest
Sandhusker said:
Oldtimer said:
Sandhusker said:
"You all keep forgetting- the stimulus/jobs bill main impact was set up over a 2 year period- "

Is that how it was presented?

Yep.....To those that listened...

Really? Can you provide a single link pre-vote that claimed it was a two-year deal?

Like I said "To those that listened"...
If you read the bill- talked to your Congressmen about the projects- you would know that about 1/2 the money had to be dedicated to a project within 120 days (shovel ready)- and half within 12 months-- making it a 2 year project- that many projects because of their size may take many more years to complete.....

But when all you're doing is screaming "NO"- its hard to hear... :roll: :wink:

Some of our local big projects like the St. Mary canal renovation and irrigation project- and the Dry Prairies water project have been worked on- on and off- for years- but never able to be completed because of lack of funding....If Rehberg, Tester, Baucus and the Gov. had their paperwork right- now they will be able to...Much of the infrastructure projects were left to the States to come up with the proposals for...

FDR's stimulus project of building the Fort Peck Dam and hydro power houses took from 1933 to 1940 to complete-employed and kept from starving hundreds of thousands of workers and their families- and is still providing power to the country today- besides having turned into a large tourist industry....
 
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