Washington, September 26, 2011
Visit Underscores Need for Congress to Pass the American Jobs Act
Highlighting the need for Congress to pass President Obama's American Jobs Act proposals to create jobs and invest in our nation's infrastructure, Treasury Secretary Tim Geithner today toured UPS's international air hub and met with local business leaders in Louisville, Kentucky. As a company that interfaces with almost every facet of the country's transportation system, UPS believes there needs to be immediate short term investment as well as long term planning to maintain and grow our transportation system.
"One of the most important parts of the President's American Jobs Act is to put people to work right now rebuilding America's infrastructure," said Secretary Geithner. "In order to be as productive and efficient as possible, American businesses need the foundation of a strong, reliable, modern infrastructure - and that means they need government to do its part. Investing in infrastructure creates good, middle-class jobs and helps our economy run at its full potential, which keeps us competitive and helps lower costs for businesses and consumers alike."
"I am encouraged that both the President and Congressional leaders are working to develop bipartisan solutions to put people back to work, modernize and create an interconnected transportation system of ports, rails, roadways and runways, create jobs by expanding access to overseas markets for businesses large and small and reform America's tax system so we can get this economy moving again," said Scott Davis, Chairman and CEO of UPS.
The Secretary's visit highlighted the value government investment in 21st century infrastructure provides by increasing productivity and efficiency in our economy and strengthening the competitiveness of American businesses. UPS estimates that a five minute daily delay for every UPS vehicle costs the company $100 million annually. Across the U.S., clogged roads cost our country at least $80 billion a year in lost productivity and wasted fuel. Flight delays cost another $33 billion in lost productivity.
With more than 137,000 flights worldwide in 2010, and more than 31,000 of those from the Worldport Facility, the cost of routine flight delays and traffic congestion have a significant effect on UPS's bottom line. Because UPS's operations require interactions with every level of American infrastructure - beyond just roads and bridges - the Secretary's visit also highlighted the need to invest in the next generation of systems to help modernize air traffic control and create a 21st century energy grid.
Earlier this month, President Obama sent to Congress the American Jobs Act, which creates jobs and cuts taxes for middle-class Americans. The President's plan addresses the problem of our nation's crumbling infrastructure while putting hundreds of thousands of workers back on the job with a strategy that combines immediate investments in infrastructure with innovative reforms to ensure that the best projects get financing. These investments would put people to work now and yield lasting benefits for our economy.