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Associated Equipment Distributors Study on Infrastructure Investment

A new study, commissioned by the Associated Equipment Distributors (AED) and conducted by researchers at the College of William and Mary’s Thomas Jefferson Program in Public Policy, provides concrete evidence as to the positive impact infrastructure investment has on the economy and government tax receipts.

AED Study Findings

 • One dollar spent on infrastructure construction produces roughly double ($1.92) the initial spending in direct and indirect economic output.

• A dollar in aggregate public infrastructure spending will generate $3.21 in economic output (GDP) over a 20-year period. 

• Each dollar spent on infrastructure generates roughly 35 cents in indirect economic activity for manufacturers, 20 cents for professional and business services providers, and 10 cents for the finance, insurance, real estate, rental and leasing sector.

• Over 20 years, one dollar in aggregate infrastructure spending generates 96 cents in taxes.

o Each dollar invested in highways and streets returns approximately 35 cents in tax revenue, of which 23 cents accrues at the federal level.

o Investing $1 in sewer systems and water infrastructure generates $2.03 in tax receipts ($1.35 for the federal government).
“The bottom line is that there’s a big difference between investment and wasteful spending,” said Associated Equipment Distributors President and CEO Toby Mack. “When the federal government pays to build a road or sewer, it’s like a business buying a bulldozer or computer. It’s a productive asset that will spur economic activity and generate revenues for years to come.”

The full report is available at The Economic Impact and Financing of Infrastructure Spending.

If you have any questions about the Construction Industry or if you have a construction project that you need completed right the first time, please contact Reliable Contracting by calling 410-987-0313 or visit our website.

Reliable Contracting maintains a reputation as a leader in the construction industry. Our clientele includes builders, developers, individuals and government agencies. With projects ranging in cost from $10,000 to over $10 million, Reliable can be seen working on Maryland’s roads, highways, airports, office parks, shopping centers, hospitals, churches, and residential neighborhoods earning our reputation by providing clients with consistent quality and dedication to their projects.

Reliable Contracting Company serves the following and surrounding Counties: Annapolis, Queen Anne’s, Anne Arundel, Baltimore, Baltimore City, Calvert, Caroline, Charles, Howard, Prince George, St. Mary’s, Talbot, and Washington D.C.

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Sources:

New AED Study Shows Infrastructure Investment Aids Economy 

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Serving Maryland's Commercial & Residential Builders & Developers Since 1928 Reliable Contracting Company, Inc. maintains a reputation as a leader in the construction industry. Our clientele includes builders, developers, individuals and government agencies. With projects ranging in cost from $10,000 to over $10 million, Reliable can be seen working on Maryland's roads, highways, airports, office parks, shopping centers, hospitals, churches, and residential neighborhoods earning our reputation by providing clients with consistent quality and dedication to their projects. Reliable Contracting Co., Inc. is a Proud Member of the following organizations: Associated Builders and Contractors, Chesapeake Chapter - www.abc-chesapeake.org Maryland Asphalt Association - www.mdasphalt.org Maryland Transportation Builders and Materials Association - www.mtbma.org National Asphalt Paving Association (NAPA) - www.asphaltpavement.org West Anne Arundel County Chamber of Commerce - www.waaccc.org Leadership Anne Arundel - www.leadershipaa.org National Federation of Independent Business - www.nfib.com U.S. Chamber of Commerce - www.uschamber.com Homebuilders Association of MD - www.homebuilders.org
2410 Evergreen Road
Gambrills
MD
21054
USA
Serving Maryland's Commercial & Residential Builders & Developers Since 1928 Introduction Reliable Contracting Company, Inc. maintains a reputation as a leader in the construction industry. Our clientele includes builders, developers, individuals and government agencies. With projects ranging in cost from $10,000 to over $10 million, Reliable can be seen working on Maryland's roads, highways, airports, office parks, shopping centers, hospitals, churches, and residential neighborhoods earning our reputation by providing clients with consistent quality and dedication to their projects.
2410 Evergreen Road, Suite 200
Gambrills
MD
21054
USA