AED, AEM: Transportation Bill Key to Unemployment

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In the wake of recent dismal government unemployment data, two construction equipment industry trade groups are warning Congress that that the economy will shed more jobs in the coming months unless lawmakers swiftly enact a new multi-year highway law.

The warning came in the form of orange flags sent to every member of Congress by Associated Equipment Distributors and the Association of Equipment Manufacturers. The flags were accompanied by details of a recent IHS Global Insight economic report that found the equipment industry had lost 37% of its work force in the last three years, the equipment industry downturn had cost 550,000 jobs nationwide, and equipment sales had declined 50% since 2006.

AED and AEM are urging Congress to swiftly reauthorize the federal highway program and increase investment in roads and bridges to stop the job bleed and put the construction industry back to work. The most recent federal highway-spending bill expired on Sept. 30. The uncertainty surrounding reauthorization and future highway funding levels has led many contractors to put off equipment purchases, which has contributed to historic volatility in equipment markets.

“These orange flags are a warning to Congress,” AED President and CEO Toby Mack said. “The highway bill is overdue and the construction industry is in a state of crisis. If Congress doesn’t do its job, more Americans are going to lose theirs in the months ahead.”

“A robust, multi-year highway bill won’t just create jobs and put people back to work, it will also build a solid foundation for America’s future economic growth, help create a cleaner environment, and make our roads safer,” AEM President Dennis Slater said.

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