New England Must Be Smart With Infrastructure
Brett
Across New England, there's an increasing recognition that we must improve our infrastructure to maintain and grow the economic vitality of our communities. A recent report by the New England Council and Deloitte provides the framework for a new brand of “smart infrastructure,” one that's more than the traditional highways, airports, railroads, telecommunications and energy systems. It also includes skilled human capital and access to financing. It's about efficient connectivity of assets and capabilities.
Infrastructure investments can yield significant economic growth, faster supply chains and reduced congestion. However, New England lacks a coheret strategy. Our report, “Smart Infrastructure in New England,” suggests that to build a 21st-century infrastructure that can enable economic growth, public and private stakeholders must collaborate to take four key steps:
1. Exploit New England's structural advantages to achieve a responsive supply chain, operating economically with less congestion, by taking advantage of lower cost “home-shoring” sub-regions to support dominant industries. There are several of these under-utilized areas that have access to labor, broadband, transportation, educational institutions, and mid-size communities. An updated, cost-effective, and diverse energy system is needed.
2. Connect regional networks and industry clusters to leverage their inherent economies with the appropriate infrastructure technology. New England must invest in the smooth movement of people. This covers a broad swath of priority upgrades, including greater access to direct international flights to emerging markets.
3. Develop workforce skills in a “learnings with earnings” collaboration, following a new apprenticeship model that can bring together the interests of business, education and government in a way that matches education with market demands.
4. Finance strategic opportunities creatively, using a range of innovative options to match affordability with productivity and speed to market. In a tough economy, creative alternatives to scarce tax revenue are critical. Possibilities include an infrastructure bank, a variety of bond proposals, and usage fees such as congestion pricing.
There are numerous economic benefits of infrastructure investment in New England. Research indicates that a $1-billion investment could create 22,000 to 27,000 jobs and grow the region's economic output by $8.5 billion to $9.7 billion. An investment of $1 billion over five years, starting this year, could yield approximately 135,000 new jobs through 2020.
We hope the report by the council and Deloitte can serve as a starting point for a broader discussion about smart infrastructure investments that can promote growth and ensure New England remains a destination for business.
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James T. Brett is president and CEO of The New England Council, an alliance of businesses, academic and health institutions, and public and private organizations that promotes economic growth.
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