Infrastructure Investment Creates Jobs, Improves Economy, says Report

December 10, 2014

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Two-thirds of the economic benefits and jobs created by federal highway and transit investment occur in non-construction sectors according to a new IHS report. The report also found that every dollar invested through the federal Highway Trust Fund in state highway, bridge and public transit programs returns 74 cents in tax revenue.

The report found that 70% of the economic benefits from infrastructure investment benefit non-construction sectors like business, education, health and leisure, and hospitality. Over 60% of jobs created by those investments are also non-construction.

“The study shows that investment in transportation infrastructure has a positive impact on every major sector of the U.S. economy,” said Karen Campbell, senior consultant at IHS. “These far-reaching economic benefits contribute to economic growth by improving the nation’s capital stock.”

By improving capital stock, it becomes possible to have an increase in economic activity, she added.

The current federal highway and public transit investment, which totals about $50 billion annually, generates an average of $31 billion in personal income tax receipts per year and $6 billion in federal corporate tax receipts. These numbers translate to around 74 cents of return on every dollar invested.

The report also linked increases in the nation’s GDP as well as personal income to transportation investment. Using the data IHS collected, the report also made predictions about what a 5% yearly increase to infrastructure investment could do.

IHS predicts that the annual increase could create between 78,000 and 122,000 new jobs by 2019. There would also be an additional $9.6 billion added to the nation’s GDP and a $4.9 billion increase in tax revenues to all levels of government.

Pete Ruane, the president and CEO of the American Road and Transportation Builders Association and co-chair of the Transportation Construction Coalition, hopes the IHS study will insight congress to improve the Highway Trust Fund.  

“This one policy area where Congress’ involvement could actually yield meaningful and long lasting economic results,” said Ruane. “Our message for congress is simple: Find a permanent solution for the Highway Trust Fund.”

The study was commissioned by the Transportation Construction Coalition which is made of 31 associations and labor unions that support strong federal surface transporation investment.  To read the full report, click here.


  1. 1. Cliff Downing [ December 11, 2014 @ 07:24PM ]

    Didn't some elected officials also say that food stamps improve the economy and create jobs? It is interesting how taking money from one segment of the population and giving it to another improves the net of everyone. What the folks who pay for fuel get to pay for at the pump in increased fuel taxes, is less than can be spent on other items. So whoever is employed making those other things, will most likely be laid off because fewer people can buy the product because more of their money is going to fund projects that cost twice as much as they should, take months longer to complete than they should, and are nothing more than cash cows for government. We built the entire Alaska-Canada highway, 1500 miles, in 1942-43, using 1930's technology, in just 18 months. The Empire State Building, the tallest structure in the U.S. from the 1930's to the 1970's, all 111 floors, totally completed in 411 days. These morons who do roads now cannot even get a simple road junction done in that time. They can't get a mile of road done in the time frame our ancestors built 1500 miles thru the arctic. And they want more money? They need to prove that they can actually provide a good value for our dollar before they ask for more.


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