Economic Development and Infrastructure: How Do They Match Up? June 23, 2016
History The correlation of infrastructure investments and economic growth and development date back hundreds of years. 1807 Erie Canal 1869 Transcontinental Railroad 1950s and 1960s Interstate Highway system 1950s through the 1960s the Unemployment Rate was 4.65% Infrastructure Investments Job Creation Increased Productivity International Competitiveness Ability to Provide Goods and Services Nationally
What s the Effect of Inadequate Infrastructure on Economic Growth and Development? Increase in Travel and Commuting Times Rising Prices of Goods and Products Less Net Income for Americans Extra Freight Transportation Costs Increase in Shipping Delays Lack of Job Creation Over the past 20 years, federal, state and local investment in transportation has fallen. American Society of Engineers gave U.S. infrastructure a D+ or poor rating. American Society of Engineers estimate a cost of $3.6 trillion to bring U.S. infrastructure to a grade B by 2020. 45% of American lack access to transit. American families spend $120 billion in extra fuel and lost time due to time spent in traffic. American businesses pay $27 billion a year in extra freight transportation costs, increase shipping delays and prices on everyday products. Sources: 1. National Economic Council and President s Council of Economic Advisors 2. Center on Budget and Policy Priorities
What s the Effect of Inadequate Infrastructure Investment? Time Frame Unemployment Rate 1950-1969 4.65 1970-1989 6.74 Stagnate or Declining Economic Growth 1990-2009 5.65 2010-2015 7.58 Time Frame Unemployment Rate 2014-2015 5.75 Source: Bureau of Labor Statistics
What s Does Smart Infrastructure Investment Create? Economic Growth Long-Term Competitiveness Enhanced Productivity Innovation Lower Prices of Goods Higher Incomes Creation of Thousands of Near-Term Jobs Source: National Economic Council and President s Council of Economic Advisors
Examples Sebring Regional Airport Approximately $25 million in infrastructure investment since the creation of the CRA in 1996. Infrastructure Investments Air Roadway Water Sewer Telecommunications Rail
Examples Sebring Regional Airport Multi-Millions of Dollars Invested into Infrastructure Multi-Modal Logistic Center 8 million square feet of Occupied Industrial Warehouse Space 670 + Full Time Jobs 100 + Part Time Jobs http://sebring-airport.com/wp-content/uploads/2015/08/sra-brochure.pdf
Florida Trends From 2000 to 2014 Florida s population grew by over 3.5 million (22%), making Florida one of the biggest states in the Country. In general employment follows population. Southeast is the largest sector and the East Central and the Tampa regions at 2 and 3. Source: FDOT, FL. Trends and Conditions. Jan 2015
Florida Statistics Florida economy isn t just local, it s regional and global. FL. is the Second largest exporter. Florida accounts for 20% of all U.S. exporters (Approximately 58,000 exporters). Manufacturing exports grew 148% from 2000-2012. In 2013 Florida exported over $85 billion in goods with a vast majority going to Latin America. Tourism is a main driver of Florida Economy. 94.3 million tourists visited last years spending $76.1 billion. Tourism generates over one million jobs and generates an estimated 23% of the states sales tax revenue. Source: FDOT, FL. Trends and Conditions. Jan 2015
What Does This Mean for Florida? Invest into existing infrastructure (Airports, Ports, Roads, Transit, Rail, and Water and Sewer). Invest into new infrastructure to support future economic growth. Source: FDOT, FL. Trends and Conditions. Jan 2015
Examples US 27 and I-4 Polk County Return on Investment Fed Ex Distribution Facility Constructed Walmart E-Commerce Campus under Construction (2-buildings totaling 2.2 + million square feet) Approximately 700 New Full Time Jobs Multi-Millions of dollars of Infrastructure Investment to Support Economic Development US 27 6-lane widening. Interchange Improvements. Construction of new local roadways including overpass. Upgrade and extension of water and sewer.
Examples County Line Road (Segment 1) Lakeland, FL Infrastructure Investment Roadway Widening/Interchange Improvements Return on Investment Well Dyne Facility Constructed Lakeland Regional Industrial Park Constructed Hundreds of Existing and New Full Time Jobs
Examples County Line Road (Segment 2) Lakeland, FL Infrastructure Investment Roadway Widening/Signalization Improvements Return on Investment Commerce Distribution Park Under Construction. O Reilly Distribution Facility Constructed. Amazon Facility Constructed (1 million sq. ft.). Thousands of New Full Time Jobs
Conclusion Transportation Investments in Roads, Airports, Seaports, Transit, Railroads, and Water and Sewer are critical in maintaining the United States and Florida s Economic growth and wellbeing. Well-planned transportation investments consistency yield a positive economic return. Transportation networks connect not only the places where we live, work and play, but also people and businesses to opportunities.