A new analysis by the Associated Equipment Distributors (AED) shows the significant economic impact the recently enacted Fixing America’s Surface Transportation Act or “FAST Act” will have on construction equipment distributors and manufacturers.
AED’s state-by-state projection estimates the five-year, $305 billion bill (which authorized $207.4 billion for the core federal aid highway program) will generate more than $13 billion in equipment market activity (sales, rental and product support) nationwide through 2020 and support more than 4,000 dealership jobs each year.
“The new analysis clearly illustrates what AED told lawmakers for almost a decade: restoring certainty to the federal highway program will yield positive economic benefits for equipment distributors, manufacturers and their employees,” said AED President and CEO Brian McGuire. “Equipment distributors were decimated during the recession and recovery has been slow due to volatility surrounding federal infrastructure programs. The FAST Act will revive the industry, create jobs, and lay the groundwork for solid economic growth.”
AED’s analysis is based on a study by Professor Stephen Fuller at George Mason University that determined each dollar spent on roads generates, on average, 6.4 cents in construction equipment market activity.
Restoring the Highway Trust Fund’s solvency has long been AED’s top legislative priority. The association strongly supported the FAST Act and will work with policymakers to identify real and sustainable revenue streams to increase and stabilize the federal Highway Trust Fund for decades to come.