Transportation Case Study Opportunity Knocks

Background

        The president of HOG, Inc. just returned from a meeting with senior company staff. The focus of the meeting was a discussion of news that there is a new federal legislative package that would provide funding for new highway projects. The president of HOG Inc. Harry O. Growbaker has tasked his vice president Terry Edwards with coming up with discussion points in regards to whether or not a highway project linking Central Pennsylvania would hold any economic or social value. Mr. Edwards talked to two of his employees and has now tasked me to come up with discussion points about the potential value of the proposed highway project.

Issues to consider

        There is proof that improvements to highways can lead to positive results for the private sectors of the area. I would first point out the history of the US highway network. According to a report from the Federal Highway Administration or FHA, between 1950 and 1989 industries saw a return of eighteen cents to every dollar they invested into the road system.(FHA) New road systems lead to not only improved driving time for companies but it also has a positive impact for private motorists. A new highway linking central Pennsylvania will cut down on costs for motorists. A new highway system will cut down on congestion which will save both private motorists and workers not only time but it will also allow them to cut down on costs such as gas. One of the major impacts that this can have is that it will create permanent jobs. According to a study done by the State of Wisconsin, when investing money into streamlining their highways it was found that the new roads system would lead to 4800 new jobs.( Cambridge). A new road system will also bring in business to local surrounding areas which will only grow with the increase of production provided to companies due to this new system (Iacono, Levinson p.15). Another positive factor in favor of the new road system is the inclusion and support provided from the largest state university, Penn State. A fellow employee and former nittany lion grad mentioned the “development of the research park at Penn State’s University Park Campus and its active role in encouraging new companies based upon applied research at the university” (Coyle, Novak p.52) This could lead to a lot of new opportunities with an improved road system.

Conclusion

        There are many pros to the proposed road system that would link central Pennsylvania. The road system would not only improve the economy but it would also improve the lives of the citizens of Pennsylvania. A new highway would lead to faster travel, less road costs for users, more production from companies which would lead to better local economies and it also promotes safer road conditions. A new road system will lead the state to fix any roads along the link and safety is always paramount in anything in concerns with the public.