ILMA Compoundings August 2018 - 5

LETTER FROM THE CEO

Regaining Our Essential Infrastructure

strong national infrastructure enables free trade and
benefits the economy. This was particularly evident
when significant infrastructure investments were
made in the '50s and '60s. By increasing productivity and
competitiveness, the manufacturing industry flourished.
Fast forward to today, and we are left with crumbling
infrastructure and stifling congestion that is leaving the U.S.
less competitive. Manufacturers need a modern and efficient
infrastructure system to remain successful in today's global
economy, and there is a significant cost that arises from
doing nothing.
The American Transportation Research Institute has
found that congestion on the nation's highways costs the
trucking industry alone $63.4 billion annually. That cost
comes from 996 million lost hours of industry productivity,
which is the equivalent of 362,000 truck drivers sitting still
for an entire year.
That number multiplies when you look at the ripple effect
those delays have within the supply chain. In today's operating environment, even slight transportation delays can result
in missed deliveries, downed production lines and unhappy
customers. We can't afford that type of standstill, particularly
given the current shortage of professional drivers and limited
capacity.
The federal fuel tax has not been increased since 1993, and
the funding that is coming in can't keep up with the current
needs. What's more, much has changed since 1993. E-commerce has exploded, soaking up capacity within the trucking
industry and putting more trucks on the road. At the same
time, driver regulations, including hours-of-service requirements and electronic logging devices (ELDs), have come into
play, further altering capacity.
Plus, the population within the U.S. is continuing to
increase. The U.S. Census Bureau reported that the population in 1990 was 248.7 million, up from 179.3 million in
1960, when much of the current infrastructure was built. By
2010, the U.S. population had grown to 308.7 million, and
it is projected to increase to 439 million in 2050, adding to
our infrastructure needs.
Several states are taking action and investing more in
infrastructure, with seven states increasing the state fuel tax
on July 1, but federal action is needed. Congress must also

act, but unfortunately there seems to be little will to do so.
Even a 20 cents per gallon gasoline tax increase at the rate
of 5 cents per year over four years, which is what American
Trucking Associations has called for, equates to $340 billion
over 10 years.
The federal fuel tax has funded infrastructure since 1931,
when the government added one penny to the price of each
gallon sold. The federal tax remains the most efficient and
equitable method to raise dedicated highway funds. An
increase would help shore up our interstate system, improving the ability of manufacturers to move their goods to
market and reducing traffic congestion.
The U.S. economy needs reliable infrastructure to move
products throughout the country to connect all parties
within the supply chain. ILMA will continue to advocate for
increased transportation funding.

Holly Alfano
Chief Executive Officer

ILMA Compoundings August 2018

Table of Contents for the Digital Edition of ILMA Compoundings August 2018