How Infrastructure Investments Support the U.S. Economy: Employment, Productivity and Growth
2-24-2009
The report, undertaken for AAM by a team of researchers at the University of Massachusetts-Amherst's Political Economy Research Institute (PERI), found that at least 2.6 million new jobs could be created by increased spending in a "high-end" scenario of $148 billion per year (including $93 billion in public investment). While the construction and service industries will see the vast majority of job creation, manufacturing, which has been devastated by the current economic crisis, would also benefit from such an infrastructure stimulus, seeing an increase of 252,000 jobs nationally.
The benefits for manufacturing would be felt throughout the economy, with new jobs created in such industries as fabricated metals (38,000), concrete and cement (21,000), glass-rubber-plastics (15,000), steel (9,000), and wood products (8,200).
The report further notes that manufacturing employment gains from such an infrastructure program could be improved significantly if the percentage of U.S.-made material inputs were increased. Simply put, a higher share of domestically produced supplies would have a significant impact in terms of generating new manufacturing jobs. Utilizing 100% domestically produced inputs for infrastructure projects would yield a total of 77,000 additional jobs nationally. Manufacturing would account for a significant 69,000 of that increase, a 33% jump in total manufacturing jobs generated.
The report's authors, James Heintz, Robert Pollin, and Heidi Garrett-Peltier of the University of Massachusetts-Amherst's Political Economy Research Institute (PERI), noted, "Public investment makes substantial contributions in terms of employment, economic growth, trade competitiveness, and essential services to the U.S. population. Such investments can also become a key driver in building a clean-energy economy."
Project Announcements
Republic Airways Holdings Plans Tuskegee, Alabama, Training Operations
04/18/2024
South Africa-Based Radel Plans Winston-Salem, North Carolina, Operations
04/18/2024
Firestone Industrial Products Expands Dyersburg, Tennessee, Operations
04/18/2024
Samsung Electronics Expands Taylor, Texas, Chip-Manufacturing Operations
04/18/2024
OMCO Solar Plans Huntsville, Alabama, Production Operations
04/18/2024
Martco-RoyOMartin Upgrades Allen Parish, Louisiana, Operations
04/18/2024
Most Read
-
2023's Leading Metro Locations: Hotspots of Economic Growth
Q4 2023
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
38th Annual Corporate Survey: Are Unrealized Predictions of an Economic Slump Leading Small to Mid-Size Companies to Put Off Expansion Plans?
Q1 2024
-
Manufacturing Momentum Is Building
Q1 2024
-
20th Annual Consultants Survey: Clients Prioritize Access to Skilled Labor, Responsive State & Local Government
Q1 2024
-
Making Hybrid More Human in 2024
Q1 2024
-
Public-Private Partnerships Incentivize Industrial Development
Q1 2024