Executive Briefings

More Manufacturers Tell U.S. Congress to Invest in Infrastructure

America's manufacturers testified before Congress last week and asked lawmakers to spend money to beef up infrastructure, which they said would reduce cost to consumers and improve the efficiencies of organizations and their supply chains.

Vermeer, which makes agricultural and industrial equipment, presented its case, where it told lawmakers that it reduces waste so that it can deliver goods in a timely and frequent manner. It processes also depend on a robust supply chain that needs a healthy infrastructure. Raw materials are received daily as are engines and hydraulic pumps, it says, all of which have to be assembled on the shop floor — before they are shipped to customers.

“If ports are clogged, trucks are delayed, power is down, or the internet has a lapse, productivity and customer service are impacted. This is not just my story. Across the manufacturing sector, transportation logistics matter, and congestion — whether at a port or on a crowded highway — is waste that drives the consumer’s cost up like a hidden tax,” testified Mary Andringa, chair of the board for Vermeer Corp. before the U.S. House Transportation and Infrastructure Committee.

“Higher transportation costs can, in turn, lead to higher inventory levels as organizations will minimize the number of deliveries they place and receive by ordering in larger quantities. Conversely, investments in transportation infrastructure that positively impact connectivity, capacity, performance and flexibility can help manufacturers support and fuel a growing economy,” adds Andringa, also the former chair of the National Association Manufacturers.

If a port is clogged or shut down, for example, it cost everyone money and the delivery of goods to end users is delayed. Ditto for roads and highways, and air transport systems. But it all requires a national commitment, and investment.

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Vermeer, which makes agricultural and industrial equipment, presented its case, where it told lawmakers that it reduces waste so that it can deliver goods in a timely and frequent manner. It processes also depend on a robust supply chain that needs a healthy infrastructure. Raw materials are received daily as are engines and hydraulic pumps, it says, all of which have to be assembled on the shop floor — before they are shipped to customers.

“If ports are clogged, trucks are delayed, power is down, or the internet has a lapse, productivity and customer service are impacted. This is not just my story. Across the manufacturing sector, transportation logistics matter, and congestion — whether at a port or on a crowded highway — is waste that drives the consumer’s cost up like a hidden tax,” testified Mary Andringa, chair of the board for Vermeer Corp. before the U.S. House Transportation and Infrastructure Committee.

“Higher transportation costs can, in turn, lead to higher inventory levels as organizations will minimize the number of deliveries they place and receive by ordering in larger quantities. Conversely, investments in transportation infrastructure that positively impact connectivity, capacity, performance and flexibility can help manufacturers support and fuel a growing economy,” adds Andringa, also the former chair of the National Association Manufacturers.

If a port is clogged or shut down, for example, it cost everyone money and the delivery of goods to end users is delayed. Ditto for roads and highways, and air transport systems. But it all requires a national commitment, and investment.

Read Full Article