Over the next few years, that trend is likely to return. Truck traffic grew even faster, particularly in metropolitan areas. highway system increased only slightly in the years after 1990, while traffic grew by nearly half. Increases in traffic have outpaced road construction in Europe and the U.S. But before companies can outsmart competitors with creative responses to the crisis, they need to understand it. Even fewer are investing to reduce transportation costs, improve logistics, and gain an advantage. stimulus package, with its focus on “shovel-ready” projects that quickly create jobs, will produce newly painted bridges and newly paved roads but is unlikely to address the capacity problem.įew executives realize the magnitude of the challenges that are about to hit them.
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But if prerecession trends reappear when the economy recovers, lack of infrastructure capacity, in combination with rising oil prices, will constrain global trade and drive up costs. Today’s economic meltdown masks the threat.
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As our worldwide transportation network becomes less and less able to support the demands of a global economy, we’re heading straight into a crisis.Ī crisis? How can we be facing a critical shortage in transportation capacity when plummeting demand and rising protectionism have reduced the flow of goods around the world to a trickle? When container ships are being laid up and the rail and trucking industries are laying off workers? When the United States is spending billions of economic stimulus dollars on improving its transportation infrastructure?