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Pat Cory blog

America’s Roads Are Broke and Broken

July 2, 2014

According to multiple reports the Federal Highway Trust Fund is set to go broke in August of this year. The Highway Trust Fund is the fund that collects money from the federal gas taxes which funds up to 60% of all road projects in the U.S. If the fund is allowed to go bankrupt and there is no emergency measures taken by congress this will have a major impact on the U.S. highways. By some accounts the U.S. needs one-hundred billion dollars, annually just to repair, maintain and build roads to keep up with America’s aging infrastructure. Some 10% of all bridges in the U.S. are in need of dire repairs and in urban areas, such as New York, Detroit and Chicago the roads are broken and crumbling with road repairs long overdue.

In the 1950’s President Eisenhower created the Interstate Highway system, which was the envy of the world. Today, in many parts of the country, it’s a joke. America is the greatest country in the world. As a great nation we cannot have roads, highways, bridges, and airports that are not up to world class standards.

If we do not find a solution the bankruptcy of this fund will have a direct impact on the transportation industry and an indirect impact on furniture retailers and manufacturers. The delay in highway construction projects will force trucks hauling furniture to use alternate routes creating higher expenses and longer hours. These costs will ultimately be passed to the retailer and on to the consumer. The two primary driving costs in transportation are time and distance; anything that negatively impacts the time and distance will result in direct cost increases to the supply chain at a time when the U.S. economy was just beginning to recover!