The Bottom Line:
- CNBC’s 17th annual Top States for Business study identifies infrastructure as the main battleground for state competitiveness.
- The collapse of the Francis Scott Key Bridge in Baltimore in March emphasizes the importance of addressing critical infrastructure issues.
- Baltimore is collecting proposals to rebuild the bridge, aiming to create a sturdy, sustainable, and reasonably priced structure within 4 years.
- States are dealing with various infrastructure challenges, including roads, bridges, ports, airports, connectivity, and utilities.
- The study also examines power grids, broadband, and shovel-ready sites, with plans for future multi-billion dollar infrastructure spending bills.
CNBC Study Highlights Infrastructure as Key Battleground for State Competitiveness
Baltimore Bridge Collapse Highlights Need for Infrastructure Overhaul
The collapse of the Francis Scott Key Bridge in Baltimore this March brought the city face-to-face with the urgent need to address its aging infrastructure. The disaster, while devastating, presents an opportunity to reimagine and rebuild a critical piece of American infrastructure. Maryland officials are now collecting proposals on how to construct a new bridge that will serve as a key link not just for Baltimore, but for the entire Eastern Seaboard.
Building for the Future: Sustainability and Resilience
Transportation Secretary Pete Buttigieg emphasizes that the new bridge will be built with the knowledge and technology of the 21st century, making it superior to the old structure that stood for 50 years. The focus is not only on creating a sturdy bridge but also one that is sustainable and resilient in the face of climate change. This approach to infrastructure development is crucial as states across the nation grapple with the challenges posed by extreme weather events and environmental stressors.
Infrastructure Investment: A Long-Term Commitment
While the Baltimore bridge reconstruction is expected to be completed in record time, with plans to finish within four years, the overall fix for the nation’s infrastructure is not a short-term endeavor. Experts believe that it will take five to ten years or more to bring the country’s infrastructure to a point where there is widespread confidence in its condition. The scope of infrastructure investment extends beyond just roads and bridges, encompassing critical components such as ports, airports, connectivity, utilities, and the power grid. As states compete to attract businesses and foster economic growth, the quality and reliability of their infrastructure will play a pivotal role in determining their success.
Baltimore Bridge Collapse Underscores Urgency of Addressing Critical Infrastructure
Rebuilding for Resilience: Lessons from the Baltimore Bridge Collapse
The collapse of the Francis Scott Key Bridge in Baltimore this March was a stark reminder of the fragile state of America’s infrastructure. The disaster, while devastating, presents an opportunity to rebuild a critical piece of infrastructure with a focus on resilience and sustainability. As Maryland officials collect proposals for the new bridge, Transportation Secretary Pete Buttigieg emphasizes the importance of building with the knowledge and technology of the 21st century. The new bridge will not only be sturdier than its 50-year-old predecessor but also designed to withstand the challenges posed by climate change.
Infrastructure Investment: A Marathon, Not a Sprint
While the Baltimore bridge reconstruction is expected to be completed in record time, with plans to finish within four years, the overall overhaul of the nation’s infrastructure is a long-term commitment. Experts believe that it will take five to ten years or more to bring the country’s infrastructure to a point where there is widespread confidence in its condition. The scope of infrastructure investment extends beyond just roads and bridges, encompassing critical components such as ports, airports, connectivity, utilities, and the power grid.
States Compete on Infrastructure Quality
As states vie for business investment and economic growth, the quality and reliability of their infrastructure will be a key factor in determining their success. The CNBC Top States for Business Study highlights infrastructure as a crucial battleground for state competitiveness. States that prioritize infrastructure investment and demonstrate a commitment to building resilient, sustainable, and modern systems will likely have an edge in attracting businesses and fostering economic development. The Baltimore bridge collapse serves as a poignant reminder that addressing critical infrastructure needs is not just a matter of convenience but a necessity for ensuring the long-term prosperity and safety of our communities.
States Grapple with Diverse Infrastructure Challenges: Roads, Bridges, Ports, and More
Diverse Infrastructure Challenges Across the Nation
States across the United States are grappling with a wide range of infrastructure challenges that extend beyond the realm of roads and bridges. Ports, a vital component of the nation’s supply chain and economic growth, require significant investment and modernization to keep pace with increasing global trade demands. Many states are also focusing on expanding and improving their airport infrastructure to accommodate the growing number of passengers and cargo traffic.
Connectivity and Utilities: The Backbone of Modern Infrastructure
In addition to transportation infrastructure, states are also prioritizing investments in connectivity and utilities. The COVID-19 pandemic has highlighted the importance of reliable broadband access, particularly in rural and underserved areas. States are working to bridge the digital divide by expanding broadband infrastructure and ensuring that all residents have access to high-speed internet. Moreover, the reliability and resilience of the power grid have come under scrutiny, especially in the face of extreme weather events and the growing demand for renewable energy sources.
Shovel-Ready Sites and Economic Development
As states compete to attract new businesses and foster economic growth, the availability of shovel-ready sites has become a key factor in their success. These sites, which have already undergone the necessary planning, zoning, and infrastructure improvements, allow businesses to quickly establish operations and begin contributing to the local economy. States that prioritize the development of shovel-ready sites, in conjunction with their efforts to improve transportation, connectivity, and utility infrastructure, are well-positioned to attract new investments and create jobs.
Power Grids, Broadband, and Shovel-Ready Sites: Essential Factors in State Rankings
Power Grid Reliability: A Critical Factor in State Rankings
As states compete for business investment and economic growth, the reliability and resilience of their power grids have become increasingly important factors in the CNBC Top States for Business Study. The devastating winter storm that hit Texas in 2021, causing widespread power outages and economic disruption, underscored the need for states to prioritize investments in their electrical infrastructure. States that demonstrate a commitment to modernizing and strengthening their power grids, while also embracing renewable energy sources, are likely to score higher in the study’s infrastructure category.
Broadband Access: Bridging the Digital Divide
In an increasingly digital world, access to reliable high-speed internet is no longer a luxury but a necessity. The COVID-19 pandemic has further highlighted the importance of broadband infrastructure, as remote work, online education, and telemedicine have become more prevalent. States that prioritize investments in expanding broadband access, particularly in rural and underserved areas, are better positioned to attract businesses and foster economic growth. The CNBC study takes into account the availability and quality of broadband infrastructure when evaluating states’ overall infrastructure rankings.
Shovel-Ready Sites: Attracting New Investments
The availability of shovel-ready sites is another critical factor in the CNBC Top States for Business Study’s infrastructure category. These sites, which have already undergone the necessary planning, zoning, and infrastructure improvements, allow businesses to quickly establish operations and begin contributing to the local economy. States that prioritize the development of shovel-ready sites, in conjunction with their efforts to improve transportation, power, and broadband infrastructure, are more likely to attract new investments and create jobs. The study evaluates states based on the number and quality of their shovel-ready sites, as well as the ease with which businesses can access and develop these locations.
Future Multi-Billion Dollar Infrastructure Bills to Shape State Competitiveness Landscape
Preparing for the Next Multi-Billion Dollar Infrastructure Bill
As states continue to grapple with the challenges posed by aging and inadequate infrastructure, Transportation Secretary Pete Buttigieg is already looking ahead to the next multi-billion, potentially multi-trillion dollar infrastructure bill. While the current Infrastructure Investment and Jobs Act is making significant strides in addressing the nation’s infrastructure needs, it is clear that there is still much work to be done. The next bill will likely focus even more on building resilience and preparing infrastructure to withstand the increasing pressures of climate change and extreme weather events.
Adapting Infrastructure to Changing Environmental Stressors
The need for resilient infrastructure has never been more apparent, as evidenced by recent events such as the winter storm that crippled Texas’ power grid and the collapse of the Francis Scott Key Bridge in Baltimore. These incidents highlight the fact that even if the nation’s infrastructure were not already aging and crumbling, it would still require significant upgrades to cope with the changing environmental stressors of the 21st century. As states compete for business investment and economic development, those that prioritize the construction of robust, adaptable, and sustainable infrastructure will likely have a significant advantage.
Investing in the Future: The Scope of Infrastructure Improvement
While the 54,000 projects funded by the Infrastructure Investment and Jobs Act are an important step forward, they represent only a fraction of the work needed to bring America’s infrastructure up to par. The next infrastructure bill will need to take a comprehensive approach, addressing not only traditional infrastructure components like roads, bridges, and ports, but also critical systems such as power grids, broadband networks, and water management. By investing in future-proof infrastructure that can withstand the challenges of climate change and support the needs of a growing population, states can position themselves for long-term economic success and improved quality of life for their residents.
