RAMPING UP
TO REBUILD
AMERICA
“[The delay of transportation-
funding reauthorization] might
prove even harder on producers
and the entire aggregate industry
than the recession.”
BRIAN BARLOW, BMG
Martin Marietta president testifies on impact of stimulus
Ward Nye, president and COO of Martin Mari- etta Materials, testified before the U.S. House
of Representatives Committee
on Transportation and Infrastructure on the status of the
American Recovery and Reinvestment Act (ARRA). His testimony, on behalf of the National Stone, Sand & Gravel Association
(NSSGA), was to present the aggregates
industry’s perspective on ARRA and to
discuss its impact on the industry.
Nye testified that, despite a 27 per-
cent decrease in aggregate production
in the first six months of 2009, there
was evidence that ARRA
funds helped maintain
the market and prevented
significant erosion of the
workforce in the transporta-
tion construction market
of the aggregates industry.
The stimulus funds’ positive
impact may be muted by
state and local government
budget difficulties.
In preparation for the hearing,
NSSGA surveyed its producer members
regarding ARRA and the activity it
generated. Respondents indicated there
were some specific positive regional
impacts in the Northeast and Midwest.
Ward Nye
While the majority had not yet seen a
noticeable sales increase over the last
three months, it is believed this is due
in part to stimulus projects taking
longer than expected to advance to the
actual construction phase.
Indications are that about 25 percent of ARRA projects will commence
in the second half of 2009, with most in
2010. About one-third of respondents
think 2010 will bring a sales increase.
Accordingly, it is expected that the
stimulus will have a positive impact on
construction activity and employment.
A majority responded that 2010 state
transportation budgets are expected to
be down or level compared to 2009.
President Barack Obama joined U.S.
Transportation Secretary Ray LaHood
at the site of the Fairfax County
Parkway Extension in Virginia to
announce that more than 8,000 highway projects have been funded by the
American Recovery and Reinvestment
Act (ARRA) since its passage in
February.
“What makes these kinds of proj-
ects so important isn’t just that we’re
creating so many jobs. It’s that we’re
putting Americans to work doing the
work that America needs done. We
are rebuilding our crumbling roads,
bridges and waterways,” Obama said.
“We are strengthening our nation’s
infrastructure in ways that will leave
lasting benefits in our communities,
making them stronger, safer and bet-
ter places to live.”
“We have come a long way in a very
short time,” LaHood said. “Projects
like this one are not only improving
safety and convenience for motorists,
they are also helping to put the econ-
omy back on track by creating tens of
thousands of jobs each month.”
Of the nearly $27 billion available
for highway projects through the
Recovery Act, $19.5 billion has been
obligated for 8,050 projects nation-
wide. As of Oct. 9, 4,760 highway
projects were under construction.
The Fairfax County Parkway
Extension project is adding much
needed capacity to a route that, by
2011, will serve nearly 66,900 daily
drivers – an increase of nearly 10
percent over current levels. At an
estimated $140 million, it is Virginia’s
largest ARRA-funded project.
The project’s first two phases
– valued at $80 million – began
construction last year, supporting
114 workers. Phase 4, which began
construction in October, received
$22.8 million in Recovery Act fund-
ing and will support an estimated
57 workers. Phase 3, anticipated to
begin construction later this year,
is expected to rely on $37.1 million
in Recovery dollars and will support
an estimated 50 workers.
Obama, LaHood visit Virginia’s largest Recovery Act project
