One of the biggest challenges facing the transportation industry is literally underneath our feet.
The deterioration of our roads, highways, and bridges has reached a tipping point in South Florida and nationwide. Maintaining our infrastructure is critical for long-term success for any company that relies on a transportation network to conduct business.
WHY IS THE STATE OF OUR INFRASTRUCTURE SO IMPORTANT TO YOUR BOTTOM LINE? CONSIDER THAT IF ROADS ARE NOT PROPERLY MAINTAINED, DELIVERY OF GOODS SLOWS DOWN, ESPECIALLY IF DRIVERS NEED TO DIVERT OR ALTER ROUTES
Because drivers are compensated for their time on the roads, delivery costs go up. More wear and tear on vehicles due to poor road conditions also increases operating expenses. The end result is that companies pay more to transport goods and those costs are inevitably passed on to the consumer in the form of higher prices.
So what is the real cost of failing to maintain our transportation infrastructure? The numbers are staggering.
One report by the American Society of Civil Engineers, “Failure to Act: The Economic Impact of Current Investment Trends in Surface Transportation Infrastructure,” states that in 2010 alone, “the poor condition of our highways, railroads, bridges, and transit systems cost $130 billion. This sum represents the higher operating costs of running vehicles on poor facilities, the expense of damages to vehicles inflicted by crumbling infrastructure, the value of the time wasted by travelers, and the added cost of repairing or replacing facilities after they have deteriorated or collapsed, rather than maintaining them in good condition.”
One inherent limitation is that there are a finite number of roads, and we can only pave and widen so many. So, how can we do more? One strategy that can make a significant impact is to support mass transit. Fewer cars on the road will reduce pollution, decrease highway maintenance costs, and ultimately save consumers time and money.
One initiative that I believe will make a difference in our region is All Aboard Florida, an intercity passenger rail project being developed by Florida East Coast Industries, LLC (FECI). The project will connect Miami to Orlando with intermediate Fort Lauderdale and West Palm Beach stations.
Stay tuned for future posts on the transportation issues that impact your business and customers.
