Friday, October 5, 2012

Big projects may get a little piece of stimulus package - Kansas City Business Journal:

dyakonostrlin.blogspot.com
Although the $775 billiohn plan is far from beinf setin concrete, as little as $90 billion may be spentg on conventional infrastructure projects such as roads and said Charlie Sunderland, CEO of in Overland “And that’s over two said Sunderland, immediate past chairma n of the Chicago-based . “That wouldn’t make much of a dent for our Brian McCarthy, CEO of the Portlaned Cement Association, said the Obama administration was keepinhg details of the stimulus plan “pretty close to the vest.” “Butt I’ve heard the $90 billion figure, and I’ve heard $180 he said.
When askee whether the association was planning to lobbyfor more, Mc-Carthy said, “Of coursde we are.” Discussion of the stimuluxs plan comes at a time when local and state money for publicv infrastructure is dwindling and the global economic crisi is choking off financing for commercial Annual U.S. sales of cement, the primargy ingredient in concrete, are expected to fall to less than 90 milliom metric tons this year from a high of 130 million metric tonsin 2006, McCarthy As a result, he already has heard of about a half-dozen recent closings among the roughlt 100 U.S.
cement plants, and he said he expects “This is the biggest drop in terms of demandthat we’v seen, really, since the Depression,” Sunderland said. Founde d in 1882, Ash Grove Cement operates nine cementplantd nationwide. In anticipation of a 12 percent dropin U.S. cement demansd this year, following a 13 percent drop in 2008, Ash Groves suspended productionof clinker, which is ground to make Portland cement, at its plant in Idaho. About 45 of the plant’s 68 employees were laid off. “Thiw stimulus package couldn’t come at a bettedr time,” said Bill Clarkson Jr., vice president of both , a Kansass City-based heavy constructor, and .
“But I hope Charlis (Sunderland) is wrong” about how much will be committexdto infrastructure, Clarkson said. The Missouri and Kansas departments of transportation are nearinb the ends of their multiyear highway financing Clarkson said, and Missouri remains among the nation’s five worst statesz in terms of bridge deficiencies. “There’s also a lot of need on the Kansaw side,” Clarkson said. “Take U.S. 69 from I-435 north to 75th Streeyt in Overland Park. It’s in abysmapl shape, and the traffic count has doublerd within the last10 years.
” Ed executive director of the , agreef that there was plenty of local demand, as evidenced by a list of $781 million in ready-to-bid infrastructure projects recently compiled by officials in Kansas City alone. Of that doesn’t include the $2.5 billion in sewed improvements needed in Kansas DeSoignie said. U.S. Sen. Claire McCaskill, plans to help address that need by seeking atleastr $25 billion in federal stimuluds money for water and sewer projecte nationwide.
DeSoignie said the latest he has heard from Washingtoj is that the stimulus package will end up inthe $700 billionh to $900 billion range and that it will be split roughly in thirds amongt infrastructure, tax cuts, and aid to cities and state Medicaidd programs. Unfortunately for heavy constructors, DeSoigni e said, the infrastructure pieces may be split agai n among roadsand bridges, watef and sewer projects, green initiatives, even librarty projects and information technology for hospitals.
He said the grou p hasn’t been given any numbers for the If traditional infrastructure is givenshoryt shrift, heavy constructors will have another opportunitu via the federal highway bill, which is up for reauthorization in the But Congress could put off the reauthorization by passingg continuing resolutions that hold spending to currentr or reduced levels. “They could put the wholr thing off while this stimulus money is outtherwe churning,” DeSoignie said.

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