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President Trump’s SOTU Address Touts $1.5 Trillion Infrastructure Investment

January 31, 2018 by admin 2 Comments

Union appeals to lawmakers to support Trump’s infrastructure bid.

crumbling railroad bridge infrastructure
A crumbling railroad bridge, one example of America’s challenges.

In his first State of the Union address to the American people last night, President Donald J. Trump reiterated his request for a comprehensive infrastructure initiative, an investment that would cost “at least $1.5 trillion.”

The president underscored the problem of getting key work done by noting it took only one year to build the Empire State Building, but it can take 10 years to get a permit approved “to build a simple road.” Immediately after Trump covered infrastructure in his 90-minute speech, a key union released a response favorable to the president’s initiative.

Crumbling Infrastructure Improvements and Union Support

The International Bridge, Tunnel and Turnpike Association (IBTTA) was one of the first unions to comment on the Trump’s initiative, although the AFL-CIO and other unions have long advocated for such a plan.

“We applaud President Trump tonight for outlining a renewed focus on the need for bipartisan action towards improving and investing in America’s transportation infrastructure,” offered Patrick Jones, Executive Director and CEO of IBTTA. Jones went on to make a case for cutting “…burdensome regulations and laws that prevent states from accessing all available funding options to meet their local needs.”

AMTRAK
AMTRAK may benefit from the president’s initiative.

Those regulations include restricting tolling of the Interstate System, an important way states might fund improvements. Jones noted that some of America’s highways would never have become a reality without tolls. He added, “Tolling is both a proven and effective tool to help pay for our nation’s infrastructure and an incubator of ideas driving mobility in the future.”

Although tolls are one way to pay for improvements, a fuel tax increase and vehicle registration are among the others. The president said nothing about infrastructure improvement funding, something Congress must address when taking up legislation.

ASCE Infrastructure Report Card

The term “infrastructure” goes well beyond roads, bridges, tunnels and rail to include such matters as transit, dams, ports and aviation. The American Society of Civil Engineers casts a wider net, adding drinking water, wastewater, hazardous waste, schools and public parks to the list. In effect, the term covers everything that underpins society.

The ASCE closely monitors America’s framework, giving the country a D+ in its 2017 Infrastructure Report Card, while noting it “…costs every American family an average of $3,400 a year in disposable income because it is outdated and unreliable.”

Following the president’s speech, Kristina Swallow, PE, President, American Society of Civil Engineers said, “Congress should seize this opportunity to provide better infrastructure to the American people in a bipartisan fashion by closing the infrastructure deficit, as President Trump proposed. Infrastructure investment is one area where both Democrats and Republicans agree. I urge Congress to develop legislation that increases federal investment in infrastructure, including fixing the Highway Trust Fund. Further, this bill should make investments that provide substantial, long-term benefits to the economy, consider the cost of a project over its lifespan, and be built sustainably and resiliently to maximize investment. Using existing federal programs’ selection process as a starting place, ASCE is confident that increased investment will modernize our infrastructure, improve public health and safety, and drive our economy forward.”

(See Also — How to Resolve a Private Seller Lien)

broken road
Roads, bridges and tunnels across the country need work.

Widespread Public Support for Improvements

Regular polling of American citizens shows strong support for infrastructure spending. Indeed, the results of a Summer 2017 poll released by the Association of Equipment Manufacturers (AEM) revealed that 89 percent of adults believe that such investments would strengthen the U.S. economy.

Further, more than eight in 10 said such an initiative would create jobs in their communities and improve their quality of life. The three top areas respondents said would benefit from improvements are transportation, construction and manufacturing.

Will Congress take up legislation in response to the president’s State of the Union address? It seems likely they will. Moreover, with a key tax victory behind him, the president isn’t likely to let up on another chance for success. This time, the vast majority of Americans may support him or at least the legislation required to get the work done.


See Also — America’s Crumbling Infrastructure and Your Car

First photo courtesy of Dano, under Creative Commons license 2.0. Remaining photos public domain via Wikimedia.org.

Filed Under: Automotive News Tagged With: AFL-CIO, AMTRAK, Association of Equipment Manufacturers, CONGRESS, engineers, IBTTA, INFRASTRUCTURE, President Trump, SOTU, unions

Ford Raises 2017 Michigan Investment to $1.9 Billion

March 29, 2017 by admin 1 Comment

Money, jobs, and a presidential tweet.

Watch or read the news and you may have a different take on a story compared to the person observing it with you. That’s nothing new, especially in the way stories are presented by various networks, newspapers, and individuals.

Three Michigan Plants

The Ford Motor Company announced on Tuesday its plans to invest additional money covering three Michigan plants, on top of the one plant it had previously targeted. The earlier announcement, made in January, was for $700 million and 700 new jobs at the Flat Rock Assembly Plant, while the latest plan adds an additional $1.2 billion and creates 130 new jobs, raising Ford’s new investments in Michigan to a grand total of $1.9 billion for 2017 alone. In all, 830 new Michigan jobs are on the way.

Ford says the investment comes as it seeks to strengthen two of its profit pillars — trucks and SUVs — as well as expand the company’s mobility initiative.

Ford Assembly PlantSo, here is how the $1.9 billion will be earmarked:

1. Flat Rock Assembly — In January, Ford announced a $700 million investment in its Flat Rock Assembly plant for “high-tech electrified and autonomous vehicles.”

2. Michigan Assembly Plant (Wayne) — Ford’s Wayne, Michigan, assembly plant will receive $850 million in upgrades to produce the Ford Ranger (2019) and the Ford Bronco (2020). Work begins next May to transform the plant, with plans to remove and install the tooling in just four weeks.

3. Romeo Engine Plant — Ford’s Romeo engine plant will benefit from an expansion to allow it to build engine components for several vehicles, including the Ranger and Bronco. The plant already produces engines for the Super Duty, E-Series, Ford Shelby GT 350 Mustang and Shelby GT350R Mustang, along with components for F-Series, Mustang, Explorer and Edge. Ford says 130 new jobs will be created to handle the expanded capacity.

4. Data Storage Expansion. The automaker’s data storage requirements are expected to increase sharply over the next four years. To handle the growth, Ford is investing $200 million to upgrade its data center for improved storage, processing, and integration of this data. A side benefit will enable Ford to introduce new mobility products and services.

“At Ford, we are investing aggressively in building on our strengths today – including trucks, vans, commercial vehicles, performance vehicles and SUVs – while at the same time growing our leadership in electrification, autonomy and mobility services,” said Joe Hinrichs, Ford president, The Americas. “As America’s top producer of automobiles, we are proud to be going even further in our commitment to invest in manufacturing here at home.”

Ford says it investments are supported by the automaker’s partnership with the UAW, as well as with federal, state, county and local governments.

“UAW-Ford is proud of the total investments in three of our Southeast Michigan assembly and engine plants, which will lead to stronger job security for our members and continued support for the surrounding communities,” said UAW-Ford Vice President Jimmy Settles. “Thanks to collective bargaining, the hard-working men and women at each of these locations will now reap the full fruits of their labor. We look forward to celebrating more product investment and job growth at each of our UAW represented facilities in the months and years to come.”


See Also — New Ford Super Duty F-600 Unveiled


President Trump Sends a Tweet

For a full day leading up to Ford’s announcement, news that something was brewing surfaced on media outlets online. Further, just hours before Ford released details of its plans, President Donald J. Trump tweeted — “Big announcement by Ford today. Major investment to be made in three Michigan plants. Car companies coming back to U.S. JOBS! JOBS! JOBS!”

The president has been pushing automakers to expand jobs stateside, giving him yet another victory lap to run.

Photo copyright the Ford Motor Company.

Filed Under: Automotive News Tagged With: data storage, Flat Rock Assembly, Ford Motor Company, JOBS, MICHIGAN ASSEMBLY PLANT, mobility, President Trump, Romeo Engine Plant, TWITTER, UAW

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