Though the Bureau of Labor Statistics recently reported that the unemployment rate fell to the lowest level since mid-2008 at 5.9%, a lot more needs to be done to create high paying U.S. jobs. One major impediment is the deteriorating American infrastructure. A recent report by the National Association of Manufacturers (NAM) points to crumbling and congested U.S. roadways, which are driving up manufacturing costs and obstructing U.S. manufacturer’s efforts to add new workers.
The report estimates that overall U.S. spending on public infrastructure fell 10.5% between 2003 and 2012. In particular, spending on highways and roads by federal, state and local governments dropped 19% during that same period. As a result, NAM is calling for a $100-billion-a-year increase in funding for roads, mass transit, airports, waterways, ports and water plants in each of the next three years. This represents about a 40% increase over current spending on new infrastructure projects. NAM president Jay Timmons said, “the United States is stuck in a decade-long decline in infrastructure spending that will eventually harm jobs creation, future productivity and our ability to compete head-to head with companies all over the globe!”
Contrast these lack of United States government efforts with the major steps being taken by the Chinese régime. For example, a brand-new, $23 billion high-speed bullet train is being developed in China that can reach speeds up to 135 mph! This is but one example of China’s growing determination to push westward across its vast and resource-rich Xinjiang province towards Central Asia and its huge oil and natural gas reserves. The train will run from Lanzhou to Xinjiang’s capital, Urumqi. In the future, it may even extend through Kyrgyzstan, Tajikistan, Uzbekistan, Turkmenistan, Iran, Turkey and Bulgaria! This will help China to expand its trade in the Silk Road economic belt. This contrasts with the U.S., which is: a) not investing heavily in high-speed rail infrastructure and b) withdrawing troops and influence away from East Asia.
Many of our executive recruitment clients are amongst those manufacturers that are calling for more infrastructure investment. For example, during a recent visit to the Silicon Valley, one of my top technical recruiters complained about huge traffic delays. He wishes that he could instead travel a high-speed train to his many executive recruiting visits in the area.
Besides the indirect job gains from manufacturers who will have lower costs and better efficiencies, there will be direct jobs creation including many R&D, engineering, scientific and technical positions produced in infrastructure related fields such as state-of-the-art high-speed trains and better bridges and roads.
What are your thoughts?
