Economy

U.S. Trade Associations: Time of Essence To Pass Infrastructure Bill

June 11, 2021

U.S. steel and metals trade associations warned Congressional leaders that the condition of the nation’s infrastructure is “dire.” They urged legislators to support the “historic” and metal-intensive infrastructure bill proposed by the Biden administration.

The White House The trade groups—which claim to represent more than 74,000 domestic facilities—pointed out that an American Society of Civil Engineers (ASCE) 2021 report card gave U.S. infrastructure a C minus. “American families and businesses will suffer” if the country fails to invest enough in infrastructure, the groups in a June 10 letter to Congressional leaders.

The letter was sent on behalf of the Aluminum Association, the American Iron & Steel Institute, the American Wire Producers Association, the Fabricators & Manufacturers Association, the Forging Industry Association, the Metals Service Center Institute and the Steel Manufacturers Association.

The ASCE report found that of the country’s 617,000 bridges, 42% are at least 50 years old and 7.5% are structurally deficient. “If infrastructure investment continues at its current limited pace, the average U.S. household could lose more than $3,300 per year in disposable income through 2039 due to higher costs, lost time, and productivity,” the trade groups said.

“We urge you to fast track passage of those matters on which there already is agreement between Republicans and Democrats,” they said. “That means investing in the physical, metals-intensive infrastructure that U.S. businesses and families need to thrive.”

Congress must “prioritize core infrastructure” and “ensure we can build now”. And Congress should find ways to expedite approvals for projects while also protecting against unfair trading practices that lead to overcapacity. “A thriving industrial metals sector is essential to the American economy,” the groups said.

The Business Roundtable estimates that every $1 in new infrastructure investment will create $3.82 in economic growth over 20 years. “By investing in infrastructure, we can enhance incomes and improve safety and daily life for all Americans,” they said.

“Infrastructure always has been a bipartisan issue,” the groups concluded. “A deal that creates good-paying manufacturing and construction jobs and fuels long-term economic growth is achievable.”

By David Schollaert, David@SteelMarketUpdate.com

David Schollaert

David Schollaert is a senior analyst for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. Based in CRU’s Pittsburgh office, David can be reached at david@steelmarketupdate.com or 724-720-1008.