News From the
Committee on Small Business
Subcommittee on Investigations and Oversight
Jason Altmire , Chairman

For Immediate Release                   CONTACT:  Alex Haurek; Duncan Neasham
July 16, 2009                                                      202-226-3636

Traffic Congestion Costing U.S. $87.2 Billion a Year
Small Businesses Call for Relief from Congress

WASHINGTON, D.C. —Increased traffic congestion is eating into the bottom lines of small firms that rely on transportation to run their businesses and costing the American economy $87.2 billion annually, witnesses told Congress today. At a hearing of the House Small Business Committee’s Subcommittee on Investigations and Oversight, chaired by U.S. Congressman Jason Altmire (PA-04), entrepreneurs discussed these challenges, and expressed hope for relief in the upcoming highway bill.

“As Congress writes the Surface Transportation Reauthorization Act, I want to make sure that we are taking small businesses’ needs into account,” Altmire said. “Congestion on our nation’s highways reduces productivity and inflates production costs for small businesses everyday. The Surface Transportation Reauthorization Act would both create good paying jobs and provide small businesses with the 21st Century infrastructure they need.”

Congress is in the process of writing the Surface Transportation Reauthorization Act. Witnesses stressed the importance of small business participation, citing the fact that small firms comprise the vast majority of the construction and manufacturing sectors. They also added that increased infrastructure spending would create jobs and promote growth. According to a study by the Associated Equipment Distributors, every dollar of direct spending on heavy construction equipment--the kind used for infrastructure projects—puts $3.19 back into the economy. In 2007, $10.2 billion in direct spending for the purchase of these tools generated $92 billion in direct earnings, and supported over 262,000 jobs.

“Providing capital to improve our roads, highways and bridges spurs small business growth and job creation,” said Chairman Altmire. “At a time when unemployment remains much too high, I believe that putting Americans to work rebuilding our nation’s infrastructure is one of the best investments we can make.”

For small businesses in industries like agriculture, manufacturing and retail, roads and highways are critical arteries of commerce. However, traffic on those roads and highways is taking a bite out of profit margins. In the time between 2003 and 2006, total logistics expenses as a share of GDP increased 15 percent. American businesses now spend more money on transportation than other industrialized nations like India and Australia. In an increasingly global economy, these outlays are affecting our ability to compete.

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Click here for video of the hearing.