EXECUTIVE DIRECTOR UPDATE W The Challenge of Our Aging Infrastructure Infrastructure Needs e’ve all heard the depressing figures from ASCE’s 2013 report card for infrastructure—a D+ for the United States? In addition, the U.S. was ranked 19th globally in the quality of its infrastructure, according to the World Economic Forum’s Global Competitiveness Report. The cost to change this is trillions of dollars! It is unclear how we will afford the cost of infrastructure development or repairs. Some of this uncertainty is due to the government working to pay down debts following the recession, especially at the state and county levels where the majority of funding would be provided. At the federal level, the Highway Trust Fund has been depleted, since fuel tax revenue has dropped as a result of the general public dr iving less. Addi t ional ly, large infrastructure projects are stalling in the pipeline, and no progress is being made due to the public’s reluctance to contribute—although they know that better infrastructure means more jobs and an improved economy. It is important to be educated on the slight difference between funding and financing. Funding refers to the government or some other entity providing resources for a project. Financing means raising money through solicitation from contributors or sponsors. Hence, this is the time to consider public- private-partnerships (P3s), and make use of them here in the states. Interest rates are still low, and private companies have money in reserve, compared to the government. P3s provide a means to sustain building infrastructure and pass costs on to those who will benefit most. One example is high-speed rail planning. Education is needed in the areas where stations will be built, so companies and individuals understand the benefits of the projects and become encouraged to invest. During DFI’s 2014 Annual Con- ference on Deep Foundations, our keynote lecturer, Silas Nichols, P.E., of the Federal Highway Administration (FHWA), and guest lecturer, Ernest A. Drott, P.E., PMP, of the US Army Corps of Engineers (USACE), both discussed the state of infrastructure and new funding and technical needs in order to repair, maintain and improve the current infrastructure in the U.S. The talks definitely caught the attention of our nearly 700 attendees. (If you missed them, you can access these and all presentations and technical conference papers online for a nominal fee. Contact [email protected] to learn how.) DFI’s membership and the deep foundations industry have the innovative ideas and technologies fundamental to addressing infrastructure problems worldwide. The needs are overwhelming, and Nichols hit on the fact that we need to optimize and prioritize because we cannot do it all. FHWA is focusing on the long- term performance of geotechnical assets and quantifying their remaining service life in order to better manage FHWA’s infrastructure assets. Similarly, Drott addressed our aging infrastructure and discussed alternate ways to fund and deliver improvements through P3s, which will “build infrastructure faster and cheaper, improve level of service, increase economic growth — translating to more jobs — enable innovation and technology, share risk and increase investment.” He emphasized the need to leverage private Theresa Engler Executive Director [email protected] capital so that civil works can be repurposed or rebuilt through collaborative budgets. Opportunity for Change No doubt this is a culture change! But cer- tainly, it can’t be overlooked as an oppor- tunity to improve our D+ grade and ranking. The U.S. is not alone in facing infrastructure needs and lack of funds. China, who has invested a lot of money in its own infrastructure, plans to develop a domestic P3 program. Brazil’s infrastructure has received a lot of attention as they invested in improvements for the 2014 World Cup and continue to do so for the 2016 Olympics in Rio. In India, there is a commitment, especially since the 2014 election, to invest in infrastructure and to be open to foreign investors and encouragement of P3s. Infrastructure is at the core of each country’s economic state and well- managed and maintained infra- structure assets are key. DFI’s membership and the deep foundations industry have the innovative ideas and technologies that can and will be fundamental to overcoming these problems worldwide. Let’s not stop looking at all avenues for getting the large civil works projects out of the pipeline and into action. DFI is committed to working with FHWA, USACE and other agencies in the U.S. and elsewhere to educate the industry on how to repair, maintain and rebuild infrastructure across the globe. I think it’s a good way to start the New Year, with resolve and open-mindedness to new ideas and opportunities. Happy New Year to all! DEEP FOUNDATIONS • JAN/FEB 2015 • 9
