by Michelle Knapik
Director, Sustainable Environments Program, Surdna Foundation
September 18, 2012

Photo from BlueGreen Alliance report, Green Manufacturing Action Plan (GreenMAP)

Over the next decades we should be able to fill the hundreds of billions in new transit, rail, and street car orders that are on the books in cities across the US in ways that create thousands of new, high quality jobs (Reconnecting America estimates that there are 413 projects valued at more than $230 billion).  This opportunity should also revive US transportation supply chain manufacturing in some of the economically hardest hit regions in the country - the same places that in the 1930s produced and serviced the fastest, sleekest such transit vehicles of the times.  The challenge is that key connectors in the transportation supply chain have been weakened, and in many cases have gone missing with foreign manufacturers quickly filling the void.  Without efforts to reestablish these supply chain connections, we will miss regional opportunities for the US to once again compete in transportation manufacturing.

But before we get to the supply chain question, we need to reexamine how transportation vehicles and equipment are purchased. Despite living in a consumer savvy country, our cities - the main purchasers of transportation vehicles, are mired in archaic buying practices and slow-moving reform efforts. Cities "procure" things through public bids and many cities are required to accept the lowest bid for goods and services.  Most of us have had the experience of sacrificing high return when we buy goods and services at the cheapest price, so thankfully, some reform efforts have enabled cities to replace low cost bids with "best value procurement." Best value enables cities to factor in provisions like experience, past performance, vehicle design, delivery schedule, and energy consumption so they can get the best value at the lowest cost.

Going one step further, Surdna Foundation grantees the Los Angeles Alliance for a New Economy (LAANE) and the Brookings Institution are organizing an effort to fast track new "best value transportation procurement" changes that will enable cities to consider the job creation and regional manufacturing benefits of their transportation purchases. In addition to boosting demand for vehicles and component parts that are produced in America, this initiative is also focused on high quality transit manufacturing jobs that when combined will help the public get the best value per tax dollar invested.

Getting this best value procurement initiative up the proverbial hill requires the development of a model bid process for cities to follow, along with research to fill data gaps and technical support that will enable cities to properly assess bid responses to the jobs and manufacturing questions. The few previous attempts by cities to do this have had mixed results.  But it is hard to fault the transit authorities because they were basically handed a bundle of new considerations without, an evaluation roadmap.  I liken it to assembling a dresser from IKEA without the diagrams or instructions -- good luck having it come out right!

Brookings' Rob Puentes hosts panel with transit manufacturers (Photo by Shawn Escoffery)

With a plan for improving links between cities' transportation purchases and an assessment of regional jobs underway, let's return to the need for the US to stitch back together the transportation manufacturing supply chain. This includes not just the big ticket production of train, bus, street car and related vehicle shells, but everything that goes in them, from gears to seat covers.  Here's where we run into a chicken and egg situation that goes like this: many small US manufacturers produce items that can be included in this supply chain, but until these manufacturers are sure that transportation purchases will build back the US supply chain they do not want to assume the risk of jumping in. But until the US supply chain is in place, purchasers will continue to have trouble meeting Buy America requirements for transportation equipment.  So instead of a system that supports a US manufacturing pipeline, buyers resort to the escape hatch in the Buy America requirements that says, in essence, if you can't fairly easily source a component that is made in America, you can purchase it from overseas.

A number of savvy government, nonprofit, business and academic leaders are working to solve this dilemma.  For example, Surdna grantees the Environmental Law and Policy Center and The BlueGreen Alliance have been surveying, identifying and mapping potential supply chain manufacturers in various regions of the country.  If we add a well mapped supply chain with a best value procurement process that includes transit manufacturing and jobs factors, we may be able to position America to reclaim a top transit manufacturing status.

Under the leadership of LAANE and Brookings, transportation advocates from various corners of the country will work on model best value bids standards and develop the technical assistance packages to support transit authorities in a few upcoming transit vehicle and rail car orders.  The demand trend for public transit is growing and the need for jobs and an expanded manufacturing base is immediate.  As this plan leaves that station, the question is whether all the signal switches will align so the little red engine's momentum can build until it reaches its US employment destination. Surdna is laying bets (via philanthropic dollars) behind this effort - and we are seeking other investors and riders.

Introduction by Phil Henderson, President, Surdna Foundation

Twenty-five years ago, Surdna worked with partners to help launch the smart growth movement.  Today, the Foundation remains committed to creating just and sustainable communities where a high quality of life is available to more people because they are surrounded by economic opportunity and a city built to enrich lives.

That is why we invest in innovative yet pragmatic solutions that make our country's transportation system affordable, sustainable and efficient. We support efforts to make sure our transportation network does a better job getting all people where they need and want to go, in the way they want to get there. A well thought out transportation system doesn't cut people off from economic opportunity, but makes prosperity possible for more people, especially those historically shut out.

The federal government is responsible for building and maintaining a healthy transportation infrastructure. At the same time, philanthropy can - and Surdna does - support organizations that advocate for transportation infrastructure policies that create and increase access to jobs, reduce pollution and give people affordable, convenient and reliable options to get to and from work, school and home.

We hoped Congress would pass a transportation bill that achieves more of what America expects and deserves. Unfortunately, after more than 1,000 days had passed since the last transportation bill expired, Congress voted on a bill, MAP21, that represents a step backwards.  The bill dedicates little money to repairing and preserving our roads and bridges, slashes the money available to make our roads safer and reduces people's input and control over major projects that affect their communities.

Following, we are pleased to share the insights of two of our grantees --- Geoff Anderson, the President and CEO of Smart Growth America, and Laura Barrett, the Executive Director of the Transportation Equity Network and the National Policy Director for Gamaliel/Transportation Equity Network -- on MAP21 and its shortfall.

I applaud our grantee efforts and those of their partners in the field to improve our transportation system. Our team at Surdna will continue to work closely with the field to foster high impact innovation at the local and state level so that in two years, when Congress votes on the next transportation bill, we can tell compelling stories of how mayors, planners, community groups and concerned residents are implementing smart growth strategies to build thriving communities.

Snatched from the jaws of victory, MAP-21 misses the chance to meet 21^st century needs

by Geoff Anderson, President and CEO of Smart Growth America

"If Americans themselves were crafting the transportation bill, we would see a doubling of share for public transportation; an ironclad system of accountability for restoring existing roads and bridges, before simply building more of them; and a strong commitment to making our streets safe enough for kids to bicycle to school, or so seniors can walk to a nearby restaurant or the drug store."

I'm sad to say that Congress has failed and taken a step back on all of these aims in MAP-21, the recently reauthorized Transportation Bill. The frustrating thing is that we were so close until the very last minute.

Read full commentary...

The New Transportation Bill:  A View from the Community Level

by Laura Barrett, National Policy Director for Gamaliel /Transportation Equity Network

Up until this point, every transportation reauthorization bill in the past two decades has contained significant improvements in government accountability and transparency, community participation, environmental justice, job access and training, and civil rights protections. But under the recently adopted Transportation Bill, entitled "Moving Ahead for Progress" (MAP-21), Congress took three giant steps backward in supporting quality of life in our communities.  The three areas in which we will not move ahead include:

• Local public involvement - there will be less involvement in some decisions about highway and transportation projects in our communities.
• Safe, accessible sidewalks and bike paths will have significantly less funding and the "Safe Routes to School" programhas been stripped away.
• Transit - the transit funding crisisin major metropolitan communities was overlooked.

Read full commentary...

A new report by Adie Tomer, released by the Brookings Institution, examines metro-level data on jobs located near transit, the number of workers within reach of job locations, and how these trends vary across industries and across cities and suburbs.  Mr. Tomer ranks the 100 largest metropolitan areas for how effectively transit gives employers access to the metropolitan workforce.

Supplementary individual metropolitan profiles explain metropolitan transit coverage, labor access rates, and industry trends.  Salt Lake City, San Jose, and Honolulu top the list of areas that provide the best labor access via transit, while Palm Bay, Poughkeepsie, and Riverside are at the bottom and provide the worst access. The report concludes with policy recommendations, calling for public and private sector leaders to shift policy to enhance transit accessibility by: 1) considering job locations in transit investment decisions; 2) using policy levers and governance reforms to enhance access to suburban locations; and 3) investing in data systems to improve decision making.

Access Where the Jobs Are: Employer Access to Labor here.

Amid continuing mixed signals about the economy, one notable bright spot is the revival of U.S. manufacturing.  The Brookings Institution recently released the latest "How We're Doing" index: “Amid Fiscal Uncertainty, Manufacturing Is Up,” by Bruce and Martin Baily, Brookings Senior Fellow in Economic Studies. Bruce and Martin analyze the past five quarters of economic data to explore how growth in manufacturing is helping support the nation's fragile economic recovery. They write, “Amid continuing mixed signals about the state of the economy, one notable bright spot is the revival of U.S. manufacturing. The surprising strength of this once-battered sector holds promise for strengthening the U.S. economy overall, and despite continued troubles in Europe its new vigor may provide a boost to the global economy.”