MANAGEMENT UPDATE.

THE GREAT INFRASTRUCTURE CONUNDRUM

“States are facing an $86 billion shortfall over the next decade for maintaining roads and bridges,” according to an April 8 report by Fatima Yousofi and Eli Gullett for the Pew Charitable Trusts. “And the U.S. is among the most expensive countries for transportation construction—projects typically cost more than three times as much as in other upper- and middle-income economies. These high costs have hindered attempts to increase infrastructure investment and with them, states’ ability to maintain and repair their roadways.”

The report delves into both challenges and provides advice for policy makers who want to address these concerns.

Here are the five major issues confronting state efforts to keep infrastructure safe and up to date:

Decades of underinvestment have created a growing maintenance backlog. As the report indicates, “capital maintenance investments have failed to keep pace with the rate of asset depreciation—the estimated annual decline in an asset’s value because of wear and tear. In total, states and localities have underinvested in maintaining roads and bridges by about $105 billion.”

Rising construction costs erode the value of every dollar. According to Pew, “Federal Highway Administration (FHWA) data shows that construction costs have risen about 70% since 2020—the steepest increase in decades—driven by higher prices for construction materials, labor shortages, and surging demand. Even after a modest dip in 2024, costs remain far above pre-2021 levels.

Lengthy reviews and other administrative delays can increase costs. “Environmental reviews can take several years, and additional pre-construction steps—such as securing funding and coordinating with utilities—can extend project timelines even further, leading to cost overruns,” explains the Pew Report, which cites the example of a California bridge, which was approved for replacement in early 2026, but faces a wait of five-to-seven years for environmental reviews and federal approval of funding.

Staff capacity and staffing limitations increase reliance on consultants, which adds to costs and reduces department control over timeliness. “Research from California found that losing just 1% of experienced engineers on the state’s payroll raised project costs by 4.3%, or six times more than the payroll savings. Conversely, projects managed by skilled, well-resourced, state-employed engineers cost about 14% less than those run by consultants.”

Inconsistent data limits effective planning and asset management. Pew research found that “while most states report road and bridge conditions and funding projections, these reports vary widely in definitions and scope. Many states still lack a complete inventory of their transportation assets and consistent information on roadway maintenance and repair needs.”

Some solutions to these issues cited by Pew include the following: