“We Are Eating The Seed Corn”

Coffee Brown, University of New Mexico, Talk Radio News

“We are eating the seed-corn of the investments we made in the 1960’s” in roads and other components of distribution infrastructure, says Sen. Mark Warner, (D-Va.).

Funding is the big issue, and it doesn’t help that congress traditionally divides the distribution into sector into pieces: rail, road, waterways, air, etc, as well as geographic divisions. What’s needed, he said, is greater “multimodal integration.”

All of the speakers at The Council on Competitiveness Seminar on “Is America’s Transportation Infrastructure Ready for Global Trade?” echoed that point over the course of their talks.

Four of America’s five major economic sectors depend on the fifth, transportation and distribution, which provides 11 million jobs. Domestic, internal, transport accounts for 85 percent of all commercial transport in the U.S. This “logistic structure” is valued at 10 percent of GDP, according to Commerce Secretary Gary Locke, and that’s the lowest in the world, meaning one of the most efficient.

Transportation Secretary Ray LaHood said the U.S. moves 50 million tons of goods per day, and our supply lines have helped America to remain competitive for 250 years, but now urban congestion and neglected infrastructure are compromising supply line efficiency.

“It’s about more than asphalt,” Warner said. “Supply is about moving goods, but it’s also about moving ideas.” Warner, whose business is telecommunication, advocates including broadband conduits into all new roads in order to extend the broadband infrastructure as inclusively and proactively as possible. “We’re still 15th in the world in terms of broadband environment,” he finished.

Council on Competitiveness President Deborah Wince-Smith extended the topic back to a global scale. “Sales from foreign affiliates of U.S. companies are three times total domestic sales,” she said, and therefore supply line efficiency is important to international competitiveness.

Douglas Oberhelman, Group President, Caterpillar, Said he sometimes can get shipments from Hong Kong faster than he can get them from an American port to their final destination within the U.S.

Overall the diverse group of speakers highlighted that global competitiveness requires:
1. Renovation and expansion of the infrastructure of roads and highways.
2. Smart distribution systems, in the form of information technology and associated technologies like RFID and sensors.
3. A return to education, science, and engineering as national values.
4. integrated, consistent, standardized, stable policies across modalities, regions, tax policy, energy policy and broadband information technology.