May 3, 2011
United States House of Representatives
Washington, DC 20515
Dear Freshman Member of Congress:
You were elected to Congress as part of a historic class of new Members and have taken office at
a time when the nation confronts enormous fiscal and economic challenges. In light of tightened
budgets and limited resources, it is more important than ever to prioritize investment to those
areas which can have the greatest long-term economic benefits to our country. On behalf of the
Organization for International Investment (OFII), we write to highlight the strong link between
the state of America’s infrastructure and our ability to remain globally competitive in the 21st
century, and urge you to support immediate steps to address our nation’s growing infrastructure
crisis.
OFII is a business association representing the U.S. operations of global companies; our
members insource jobs to America. While their parent companies have roots outside the United
States, these companies make significant contributions to the economic strength and vitality of
our nation. They employ directly over 5.6 million Americans, accounting for 13% of American
manufacturing jobs and producing roughly 18% of U.S. exports.
As these numbers illustrate, America’s ability to compete globally is of paramount importance to
our members. As such, we have recently launched a campaign to educate the public and
policymakers on why infrastructure investment warrants unique consideration as it boosts
competitiveness by raising productivity growth and standards of living. Our business
community firmly believes the connection between modernizing America’s infrastructure and
our future economic prosperity – including the ability to attract high-quality investment from
abroad – must be a guiding theme of efforts to build a globally competitive economy.
The competition for investment dollars from abroad has never been fiercer. With new
economies and markets emerging around the world, global companies have an unparalleled
variety of options in choosing where and how to invest. While there are many issues that factor
into their investment decisions, the quality of infrastructure is widely recognized as one of the
most important. For much of the 20th century, the high quality of America’s infrastructure was a
key advantage in attracting investment to this country. However, a troubling gap has emerged of
late between the United States and our economic competitors. If we continue down the current
path, the United States risks damage to its reputation as the best place in the world to invest and
do business.
May 3, 2011
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There is broad agreement from the business community that America’s infrastructure is in crisis
and that greater and more consistent investment is desperately needed. Today, we spend only
around 2% of GDP on infrastructure, compared to 5% in Europe and 9% in China. According to
the Organization for Economic Cooperation and Development (OECD), from now through 2030,
global infrastructure spending will average 3.5% of GDP per year and amount to roughly $71
trillion in all. Should these projections prove accurate, America’s current infrastructure spending
will lag dozens of countries for another generation.
Likewise, the American Society of Civil Engineers estimates that between 2009 and 2014,
raising America’s overall infrastructure condition to “good” would require $2.2 trillion in new
investment. However, federal, state, and local spending over that period is projected to be only
half of that, $1.1 trillion. While the U.S. struggles to meet basic obligations, other nations are
making innovative and long-term commitments to infrastructure modernization – commitments
that are transforming their economies and drawing new investment from abroad. Furthermore,
the uncertainty surrounding our nation’s commitment to infrastructure makes global companies
hesitant to bet on the American market – stifling the flow of much-needed jobs and capital.
We urge you to support necessary steps to address our country’s infrastructure crisis. America
cannot afford to defer this challenge if we wish to remain the world’s most powerful economy
and most attractive place to do business.
For more information, we encourage you to review a recent report by economist Matthew
Slaughter entitled “Building Competitiveness,” which can be found on our website:
http://www.ofii.org/docs/OFII_Infrastructure_Paper.pdf.
Thank you, and please let us know if OFII can be a resource to you or your staff.