A report recently issued by the Equipment Leasing & Finance Foundation says critical repairs, maintenance and construction of the U.S. infrastructure system have been undermined by the recession and lower budgets. The report, called Infrastructure Construction and Equipment Finance Opportunities, notes that the U.S. infrastructure system has been given a grade of D by the American Society of Civil Engineers (ASCE) after years of neglect.

It is estimated that $2.2 trillion is would be needed over the next five years to repair and modernize U.S. infrastructure, according to the report, which was compiled by IHS Global Insight, a global economic and financial forecasting company, at the request of the foundation.

According to the report:

• Stimulus bills such as the American Recovery and Reinvestment Act will give infrastructure construction a small, temporary boost, but will not provide a long-term solution.

• The future of infrastructure investment depends heavily on federal legislation, and Congress is currently focused on highways and streets, power and railways.

• Public-private partnerships and a national infrastructure fund designed to attract private investors is becoming more enticing as government agencies struggle with funding.

• Lack of work forced many companies to lay off workers and idle or sell their equipment. Utilization rates among construction equipment fell to around 60 percent compared to around 80 percent during normal economic times.

• Lenders are requiring borrowers to have top credit quality and are giving preference to longstanding clients.

The study details infrastructure opportunities by infrastructure sector, including the following:

• Highway and Street Construction: Highway and street projects will continue to attract public and private attention.

• Rail: High-speed rail studies are sprouting up across the nation as rail options gain momentum.

• Power and Communications: Power sector investment will dominate infrastructure construction spending for this sector.

• Sewer and Water Lines: Despite an urgent need, federal support for water and sewer infrastructure is mixed.

• Transportation: Trends in transportation are slower moving and less volatile, meaning that growth in the segment will not occur quickly.

• Conservation and Development: The nation’s dams, levees and locks received poor to failing grades from the ASCE. The U.S. Army Corp of Engineers found 47 percent of the 257 locks in the inland waterway system to be obsolete.

To read the executive summary of Infrastructure Construction and Equipment Finance Opportunities, go to http://leasefoundation.org/IndRsrcs/MO/Infrastructure.htm.