The National Association of Manufacturers this week launched a Building to Win campaign urging Congress to pass robust infrastructure investments and reauthorize critical federal highway programs before they expire on Sept. 30.
As part of the launch on Tuesday, the NAM unveiled a new infrastructure policy roadmap, including original analysis on the economic costs of congestion on manufacturers and a set of core infrastructure policy pillars. The NAM also debuted a new ad underscoring the importance of infrastructure investment and permitting reform to manufacturing competitiveness.
“Manufacturers need modern, reliable infrastructure to create more jobs, grow our economy and keep America competitive,” said NAM President and CEO Jay Timmons.
“From roads and bridges to ports and airports, from highways to runways and waterways, 21st-century infrastructure means supply chains that deliver, commutes that work and communities that thrive,” Timmons said. “That’s why policymakers must act with urgency this year to invest in robust American infrastructure by passing a strong surface transportation reauthorization bill and commonsense, comprehensive permitting reform.”
The NAM’s policy roadmap outlines four pillars for a robust surface transportation reauthorization:
- Continuing robust investment levels for federal infrastructure, including by developing long-term solutions for Highway Trust Fund solvency
- Strengthening supply chains across transportation modes
- Investing in water infrastructure that will support manufacturing growth and public health
- Reforming burdensome permitting laws and regulations to ensure federal infrastructure investments are made efficiently and responsibly
The NAM’s analysis shows that highway congestion costs manufacturers more than $25 billion annually and results in over 65 million hours of delays in freight carrying finished goods and critical inputs each year.
The analysis also visualizes, through a new map, key logistics nodes intersecting with the nation’s 25 worst freight bottlenecks, revealing more than 2 million hours of annual delays for manufacturers.
For example, the Newark-New York region (comprising New York, New Jersey, Pennsylvania, and Connecticut) ranks second in the country for freight congestion, costing manufacturers an estimated $2.1 billion a year, NAM said. The Philadelphia-Reading-Camden region (comprising Pennsylvania, New Jersey and Delaware) ranked 9th for freight congestion, costing manufacturers an estimated $616 million, NAM said.
In addition, NAM estimates that congestion at container and bulk ports cost manufacturers more than $13 billion annually in carrying costs and demurrage charges (fees charged by fees shipping lines or terminal operators on consignees when containers are not picked up, unloaded, and removed from the port-terminal within a specified period).
The report also calls for federal permitting reform, noting that unclear timelines, lack of agency coordination, overlapping statutes and endless litigation continue to drive up the costs of critical infrastructure projects.
“Policymakers must take a holistic view of what reforms and modernizations are needed to ensure America can build the infrastructure that manufacturers need to compete, grow and win,” the report said. “Surface infrastructure legislation presents an opportunity for Congress to act in a bipartisan fashion to enact comprehensive permitting reform, and manufacturers need Congress to seize the moment so we can deliver for the American people.”
