US president Barack Obama has received a highly critical open letter from Pete Ruane, president of the US-based American Road & Transportation Builders Association (ARTBA). The letter questions the lack of progress in the delivery of a long-term surface transportation bill by the US Government. This bill is now 15 months behind schedule, which has resulted in a knock-on effect for the already struggling US construction sector.
US president Barack Obama has received a highly critical open letter from Pete Ruane, president of the US-based American Road & Transportation Builders Association (ARTBA). The letter questions the lack of progress in the delivery of a long-term surface transportation bill by the 908 US Government. This bill is now 15 months behind schedule, which has resulted in a knock-on effect for the already struggling US construction sector. According to Ruane's letter, market indicators are pointing to a severe contraction in the domestic transportation market in up to half of the US states. Ruane points out that the American Recovery & Reinvestment Act (ARRA) funds will be exhausted this year and with little US Federal funding being allotted to major transportation projects, ARTBA fears that construction firms will suffer and unemployment will grow, with an overall negative effect for the US economy as a whole. Ruane's letter adds that 14 US states have already announced budget cuts for this financial year, with more likely to follow. With the 2347 Texas Transportation Institute having revealed its study showing that traffic congestion is costing the US economy US$115 billion/year, ARTBA points out that investing in transport spending using Federal grants would reap major economic benefits for the country.
