Most US states continue road work despite virus spread

  • : Oil products
  • 20/03/27

US states have largely continued with road construction that has been deemed essential to the function of local economies even as other activities have shut down amid the coronavirus pandemic.

But deepening concerns about the outbreak affecting project sites could force additional work stoppages and reduce demand for paving materials such as asphalt.

Pennsylvania was the first state to issue a construction stop order since the US government began imposing restrictions on travel. Heavy engineering infrastructure plans like highways and bridges, institutional and residential building projects, as well as specialty trade work sites have been affected.

So far, parts of Massachusetts, Washington and Pennsylvania have halted road work in an effort to contain the spread of the virus and protect jobsite employees.

Boston suspended all regular activity at construction sites. Road crews were still required to keep locations and material secure and free from trespassers until earlier this week.

The San Francisco bay area in California as well as Austin, Texas are only permitting work on commercial construction projects.

Prolonged road stoppages ahead of the 2020 paving season have the potential to significantly dent asphalt demand, which typically ramps up in the spring.

Industry groups and transportation associations have been vocal in their opposition to pausing work on construction sites.

States are now confronted with an estimated 10pc decline in highway-related revenues for the next two fiscal years, wrote the American Association of State Highway and Transportation Officials (AASHTO) in a letter to congressional leaders. The association asked Congress for $16.7bn in federal highway funding so that state transportation systems could combat falling gas-tax revenues and user fees from the coronavirus.

"Increased investment in transportation infrastructure has time and again proven to provide the optimal boost to the economy during a major crisis — and these benefits go well beyond short-term construction jobs maintained and supported," read the letter.

The Associated General Contractors of America argued that halting infrastructure projects could undermine future efforts to increase hospital capacity and bankrupt construction companies that risk being fined for not sticking to their set schedules.

"But needlessly shutting down projects where workers are already protected will not help. Instead it will threaten the livelihood of millions of craft professionals, force many small and family-owned businesses to shut down, and undermine the nation's ability to respond to natural disasters, including the coronavirus," Associated General Contractors of America chief executive Stephen Sandherr said.

The road transportation sector has faced substantial funding challenges in recent years, with the investment backlog for highways and bridges reaching $786bn before the virus outbreak, according to the US Department of Transportation.


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