Yahoo Finance Texas shows need for infrastructure spending has 'never been greater': Engineering CEO
Extreme weather that's plunged much of the U.S. into the deep freeze — and put Texas failing energy infrastructure in the spotlight — underscores the dire need for federal infrastructure spending, the top executive of an professional services firm told Yahoo Finance.
On Saturday, President Joe Biden declared a state of emergency in the Lone Star State after millions were left without water and electricity amid frigid temperatures. The crisis has prompted an "urgent need" for funding into America's infrastructure that's been a long time coming, according to Jacobs (J) CEO Steven J. Demetriou.
"Over the last 10 years, both sides of the aisle have been talking about the urgent need for infrastructure," said Demetriou, whose company is headquartered in Dallas Texas.
"There's a generational opportunity under the Biden administration to really move forward," the CEO added. "I think the desire is there, the climate change drivers, digital drivers, I think we're gonna see some movement here in 2021."
Texans were completely caught off guard as a winter storm knocked out power for millions, causing widespread pandemonium. Demetriou told Yahoo Finance the incident is eye-opening, and called Texas "only one example of these type of things that are happening across the country," underscoring an "urgent need" to fix the U.S.'s crumbling network of roads, bridges and energy systems.
"But that's only the beginning of the issues...cities and towns desperately need to modernize schools, upgrade and expand water infrastructure and many other services," he added, citing how extreme weather is exacerbating the problem.
"These crazy issues in Texas and across the globe...sea level rise in some cities, flooding, bushfires, the fact that throughout the United States....we are clearly at a stage where the need for federal infrastructure investment has never been greater," Demetriou added.
Not just 'throwing money' at the problem
Outlined with 'The Biden Plan to Invest in Middle Class Competitiveness', the Biden administration calls for a $1.3 trillion investment in the country's infrastructure over ten years, "to equip the American middle class to compete and win in the global economy, to move the U.S. to net-zero greenhouse gas emissions, and to ensure that cities, towns, and rural areas all across our country share in that growth."
Yet Demetriou emphasized that there's much more involved than "just throwing money at each of these individual issues."
He added: "It really creates an opportunity for a modern set of integrated economic, social and environmental strategies to drive infrastructure investment going forward. It's not about concrete and steel, it's more about connecting urban and suburban communities through multi-purpose infrastructure solutions."
The executive noted that when it comes to the economic impact of the average taxpayer, this issue "goes beyond the traditional economic measures" and is "about saving people's lives."
Shares of Jacobs are up nearly 11% from a year ago, with shares closing at $112.41 a share on Friday, February 19th's market close.
Brooke DiPalma is a producer and reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma.
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