EDI­TO­RIAL

DEMM Engineering & Manufacturing - - EDITORIAL -

Apparently, the cur­rent cost to re­pair fail­ing rails, road­ways, tun­nels in bridges in the USA is as­tro­nom­i­cally high. The Amer­i­can So­ci­ety of Civil En­gi­neers scored the coun­try’s in­fra­struc­ture a D+ and es­ti­mates an in­vest­ment of USD3.6 tril­lion will be needed to re­pair the ma­jor­ity of it within the next three years.

But in­stead of re­ly­ing on gov­ern­ment fund­ing for this, Pres­i­dent Trump reck­ons he can stim­u­late USD1 tril­lion into pri­vate­sec­tor in­fra­struc­ture spend­ing with USD140 bil­lion in tax cred­its to com­pa­nies who will step up to the chal­lenge. But, say ob­servers, since the re­turn on in­vest­ment is lit­tle to none, many pri­vate com­pa­nies will not jump at the chance to par­tic­i­pate in the work. Pri­vatis­ing the work could also lead to pri­vate as­set hold­ers with too much power over fu­ture in­vest­ment de­ci­sions. Trump’s other plan is to repa­tri­ate prof­its by of­fer­ing a one-time tax rate in­cen­tive of 10 per­cent to bring busi­ness back to US from over­seas. This could ap­peal to man­u­fac­tur­ing and off­shore phar­ma­ceu­ti­cal com­pa­nies, but U.S. man­u­fac­tur­ing needs to be pre­pared for such an un­der­tak­ing be­cause this will make US prod­ucts very ex­pen­sive.

Go here to read an in­ter­est­ing and in­for­ma­tive ar­ti­cle about en­gi­neer­ing un­der the new regime.

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