connecticut transportation 2o13 surveyexisting challenges and costs texas a&m transportation...

350 Church St., Hartford, CT 06103-1126 | 860.244.1900 | cbia.com

CONNECTICUT TRANSPORTATION2O13

SURVEY

2013 CONNECTICUT TRANSPORTATION SURVEY 1

IntroductionA number of studies released this year, including reports

by CNBC and the national transportation research group

TRIP, point up serious deficiencies in Connecticut’s

transportation system and underscore the need to invest

in infrastructure improvements.

Connecticut’s Department of Transportation has

launched a strategic planning approach to its policies,

programs, and projects aimed at paving the way for

a more competitive economy and sustainable future.

And progress has been made toward enhancing public

transit, improving the I-95 corridor, restoring or replacing

bridges, upgrading rail systems and parking facilities,

and expanding Bradley International Airport.

Considering the measurable—and increasingly negative—

impact the state’s outdated transportation infrastructure

has had on businesses, residents, and economic vitality,

these are important first steps; however, considerable

work remains to be done.

In the face of limited resources, which transportation

projects take priority, and who pays for them?

The Connecticut Business & Industry Association,

together with the Stamford Chamber of Commerce,

Connecticut Construction Industries Association, and

Motor Transport Association of Connecticut, posed

these questions to business leaders throughout the

state in the first major survey focusing on Connecticut’s

transportation issues.

The 2013 Connecticut Transportation Survey, made

possible with the generous support and sponsorship

of UIL Holdings Corp., was emailed to top executives

throughout Connecticut in late September and early

October 2013, during the major service disruption to

Metro-North’s railway system. (Not surprisingly, one in five

survey respondents noted that in terms of transportation

projects, expanding our rail systems would provide the

greatest benefit to the state and its businesses, second

only to expanding highway capacity.)

Out of 6,000 business leaders surveyed, we received

responses from 651 individuals, for a response rate of

10.9% and a margin of error of +/-3.92 %.

CONTENTSIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . 1

Key Findings . . . . . . . . . . . . . . . . . . . . . . . . 2

How Important Is Transportation? . . . . . . . . 3

Existing Challenges and Costs . . . . . . . . . . 4

Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

How Do We Get There? Funding Issues . . . 7

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . 9

About the Survey

Methodology . . . . . . . . . . . . . . . . . . . . . 10

Demographics . . . . . . . . . . . . . . . . . . . . 10

About the Sponsor

UIL Holdings . . . . . . . . . . . . . . . . . . . . . 11

About CBIA . . . . . . . . . . . . . . . . . . . . . . . . 12

2013 CONNECTICUT TRANSPORTATION SURVEY2

Key Findings The number-one transportation concern for Connecticut

business leaders is road congestion (45% of survey

respondents), followed by deteriorating roads/bridge

conditions (28%).

When asked what single transportation project would

provide the greatest benefit to Connecticut residents

and businesses, 55% of businesses identified highway

improvements and expansion.

Businesses overwhelmingly want to see operational

lanes added to I-95 (88% of respondents).

Adverse impacts

of Connecticut’s

congested

roadways on

businesses

include hindering

their ability

to meet with

customers (63% of

respondents) and

causing delivery

logjams (48%).

Forty-two percent

of respondents

say their market or territory

is limited by transportation

issues.

Nearly three-quarters of

businesses surveyed (74%)

would support legislation

prohibiting the use of

Connecticut’s Special Transportation Fund to cover

General Fund shortfalls.

Connecticut commuters’ high use of single-occupant

vehicles can best be reduced, business leaders say,

through tax incentives for car/vanpooling (27% of

respondents), expansion of rail and bus options (22%),

expanding train station parking (10%), and better

transit to and from train stations (9%). Fifteen percent

of Connecticut businesses surveyed have considered

relocating because of regional transportation concerns.

Respondents are split down the middle on preserving

the Merritt Parkway as a historic roadway (48%) or

upgrading it to increase capacity (50%). Of those

who favor increased capacity, more than one in 10

would like to see the parkway upgraded to handle

commercial traffic.

For business leaders, transportation ranks in the top

three—behind economic development and education—

in terms of state spending priorities and businesses’

willingness to pay for them. Only 14% of respondents

put transportation below the midpoint (on a scale of

1 to 5) in terms of their willingness to pay for it.

Does Connecticut’s road congestion restrict or limit the territory of

your market?

YES

42%

Provide tax incentives for car/vanpooling

Expand current rail and bus line

Improve train station parking and security

Provide better transit to and from stations

27%

22%

10%

9%

What’s the most effective strategy for promoting alternatives to single-occupant vehicles?


is somewhat or very important to their company’s ability

to move goods and services. In addition:

57% are somewhat or very dependent on passenger

transportation for their business

64% say that better mobility and transportation

options would enhance their ability to attract and

maintain a quality workforce

54% say that customers consider access and

convenience when deciding whether to do business

with them

How Important Is Transportation?Businesses need to move goods and services with

the speed and efficiency that allows them to compete

in a global economy.

Well-maintained roads, safe bridges, and highways

with good peak-hour volume-to-capacity ratios not only

encourage economic development but also benefit

workers, enhance a state’s quality of life, attract new

businesses, and help

create and sustain

tens of thousands

of construction-

related jobs as well

as jobs for planners,

designers, and

materials suppliers.

Indeed, 78%

of executives

surveyed said

that Connecticut’s

transportation system

Would better mobility and transportation

options increase your ability to attract and

maintain a high-quality workforce?

YES

64%

Very important

Somewhat important

Neither important nor unimportant

Somewhat unimportant

Very unimportant

53%

25%

14%

4%

5%

How important are Connecticut’s transportation systems for the movement of goods and services for your business?

“Connecticut’s economy will

continue to stagnate unless we

invest in improving connectivity both

within the state and to the New York

City and Boston metropolitan areas.

More and better transit options will

support economic growth and

improve quality of life.”

James P. Torgerson | President & CEO UIL Holdings Corporation


29% chose their business site with transportation

issues in mind

For those businesses that rely on freight transportation,

the vast majority of cargo (87%) is handled by truck, as

opposed to air transport (8%), ship transport (3%), or rail

(2%). Eighty percent

of respondents

rate the quality and

dependability of

freight transportation

as good to excellent;

however, only 6%

believe roadway

capacity has kept

pace with truck traffic

(predicted to double

in volume by 2020,

over 1998 levels).

More than half

of Connecticut

businesses surveyed (56%) favor having more rest areas

for truckers.

Existing Challenges and CostsTexas A&M Transportation Institute analyzes trends

in traffic congestion and their associated costs. The

Institute’s 2012 Urban Mobility Report finds that

congestion wastes 5.5 billion hours of U.S. commuters’

time and 2.9 billion gallons of fuel. Since 1983, the

amount of time lost waiting in traffic surged from 16

to 38 hours annually per driver, and the related cost

per commuter went from $342 to $818. The total cost

of congestion nationwide is $121 billion, of which an

estimated $27 billion is wasted time and diesel fuel from

trucks moving goods.

When asked about their primary transportation concern,

45% of Connecticut business leaders cited traffic/road

congestion, and 28% cited deteriorating road/bridge

conditions. Other key concerns were Connecticut’s lack

of alternative transportation (11%) and high or rising

transportation costs (6%).

Half of our survey respondents say congestion plays a

role in planning work schedules for their businesses,

and 42% acknowledge that their market is limited by

congestion and travel delays. Other impacts include

delaying or preventing meetings with customers (63%),

holding up delivery times (48%), inhibiting access to

customers (41%) or customers’ access to their business

(37%), and disrupting logistics (36%).

In open-ended responses, respondents explained the

myriad ways in which road congestion alters the way they

do business or impacts their bottom line. Among their

comments:

We expanded our clients’ expectations for what

‘on-time’ means

From a business perspective, have roadway capacity

increases kept pace with increased

trucking traffic?

NO

94%

Quality and dependability of freight transportation in Connecticut

n Excellent n Fair

n Very good n Poor

n Good

32%43%

18%5%

2%


Delays affect production schedules

Our product requires a lot of outside processes at other

companies in Connecticut. Our deliveries and pickups

must be planned around traffic.

Reduces number of clients to be seen

We provide on-site service for office equipment and

network services. Time is of the essence.

It impedes my visits to my warehouse and customers

Utilizing the option to work from home

Difficulty planning/conducting meetings

Increases costs due to lost time

Clients often reschedule or won’t come

Lose a huge amount of working time just trying to

get to meetings in the area

Arriving on time at a worksite is impossible for our

contractors

Some employees work a flexible schedule as a result.

Affects arrival of parts

Schedule our fleet away from Fairfield County

during peak hours

Hard to find staff

Alters delivery schedules

Delays deliveries to job sites

Travel delays cost us $1 million-plus a year

“I-95 was built more than a half-century

ago with a capacity of 50,000 vehicle

trips per day. Presently there are

164,000 trips per day, which is 312%

over capacity. It is no wonder that

this highway structure is among the

state’s—and even the country’s—worst

and most unsafe.”

Jack Condlin | President & CEO Stamford Chamber of Commerce

Scheduling meetings with customers

Delivery times

Access to customers

Customer access to business

Logistics

63%

48%

41%

37%

36%

Which aspects of your business are impacted by road congestion and other travel delays?


Eighty-three percent

of businesses say

they absorb these

ancillary costs rather

than pass them on

to customers. One

in four also report

paying a premium

to their employees

because of travel

expenses.

Adding to the

problem in

Connecticut are

long commutes and

driving preferences.

Sixty percent of top

executives surveyed and 63% of their non-management

employees travel at least 10 miles each way to work—

frequently 20 miles or more. The vast majority of

respondents (92%) report that their employees start work

between 6:01 a.m. and noon, and most report that this

window of time coincides with when they do most of their

shipping and receiving—resulting in peak hours with a

very high volume-to-road-capacity ratio.

Much of the state’s

workforce is scattered

in areas with limited

rail service or other

mass transit options,

and despite a decline

in driving over the

last five years,

automobiles are still

the preferred mode

of transportation here.

The employers we

surveyed reported

that 91% of their workers drive to work. Only 3% car/

vanpool, 4% walk, bike, or telecommute, and 2% take

the train or use other public transit. Eighty-two percent of

businesses surveyed are not satisfied with the availability

of parking at Connecticut train stations.

SolutionsSolving Connecticut’s transportation problems means

addressing several needs: repairing and maintaining

infrastructure, expanding highway capacity, increasing

transportation choices, and creating a well-connected

transportation system.

Historically, federal dollars have been the

major source of funding for transportation

system upgrades. Congress, however,

intends to reduce (or at least flat-fund)

federal transportation aid to states. Funding

could be cut by as much as $603 million

in 2014.

How are costs from traffic congestion and travel delays apportioned?

n The costs come out of the company’s bottom line

n The costs are passed on to customers

n Other

15%

83%

2%

Are you satisfied with the amount of parking

at Connecticut’s train stations?

NO

82%

What percentage of your workforce uses these methods of transportation to commute to work?

n Individual vehicle

n Car/vanpooling

n Public transit—bus

n Public transit—train

n Walking/biking

n Telecommuting

n Other

91%

3%2% 1%


Like many other states, Connecticut faces a serious

transportation funding shortfall. Our bridges, highways,

rail lines, and port facilities require extensive restoration

and enhancement at the same time revenues from the

federal gas tax are falling.

How do we reconcile the gap

between projected revenues

and infrastructure improvement

needs? Which strategic

transportation investments

should take priority?

By and large, business leaders

desire greater road capacity.

Expanding highway capacity was identified as the single

most beneficial transportation project for Connecticut’s

residents and businesses by more than 55% of executives

surveyed. Expanding commuter rail systems was a distant

second (17%), followed by replacement or repair of

bridges (9%) and increasing the number of direct flights

from Bradley International Airport (4%).

A very small minority of businesses (1%) consider

busways to be the most impactful project. Many, on the

other hand, believe these are speculative investments

that take away from higher-priority maintenance and

upgrades to high-usage areas of transportation.

Overwhelmingly, businesses want to see operational

lanes added to I-95 (88% of respondents).

How Do We Get There? Funding IssuesWhen business leaders were asked about areas of

state spending “in terms of your willingness to pay for

them,” transportation ranked in the top three (23% of

respondents), behind economic development (37%)

“This survey proves that Connecticut’s

future economic health is highly

dependent upon an upgraded

transportation system. For too long,

the highways and bridges of this

state have been allowed to slip into

disrepair. And, congestion now daily

chokes the circulatory system which

the business community needs for the

safe and efficient movement of goods

and people. This is a wakeup call to

Connecticut’s political leadership. It’s

time to stop postponing expansions

and improvements and get this state

moving again.”

Michael J. Riley | President, Motor Transport Association of Connecticut

Most beneficial transportation project for the state and its businesses

n Expand highway capac-ity/improve highways

n Expand commuter rail systems

n Replace/repair deteriorating bridges

n Other

n Increase the number of direct flights from Brad-ley International Airport

n Improve secondary roads

n Provide tax incentives for telecommuting and carpooling

n Expand port capacity

n Expand rail freight systems

n CTfastrak busway

55%17%

9%

2%2%

1%4%3%

2%

6%


and education

(36%). Only 14%

of respondents

put transportation

below the midpoint,

on a scale of 1 to

5, in terms of their

willingness to pay

for it.

Connecticut’s

2014–2015 biennial

budget includes $2.6

billion in operating

funds and $1.3

billion in bonding

approved in the

Special Transportation Fund. (The STF was established

after the collapse of the Mianus River Bridge in 1983,

in response to concerns about adequate transportation

funding. Money is collected from the petroleum products

gross receipts tax and the gas tax charged to consumers

at the pump. This latter tax, which was increased this year,

had a negative impact on 72% of Connecticut businesses

surveyed.)

Though the state has collected over $2.6 billion from

these taxes since 2005, and while STF funds are set aside,

ostensibly, to maintain and repair the state's bridges, only

about half of that money went to its intended use. The rest

was raided to plug holes in the budget and pay for non-

transportation projects. Considering that DOT estimates

at least $12.5 billion is needed to pay for what it deems

“unfundable highway and bridge projects,” diverting

transportation funds to cover other shortfalls in the

General Fund is a serious concern.

Transportation funding is simply not the relatively big piece

of the pie that it was 20 or 30 years ago. For the biennium,

the STF is only about 3% of the operating budget and no

more than 20% of the capital authorization.

In addition, within Connecticut’s General Assembly there

is disagreement about whether state and federal funds

should be directed to ‘Fix It First’ projects (repairs to

existing interstates, overpasses, and bridges) or used

partly to fund road expansions.

A new law that goes into effect in 2015 will prevent

transportation dollars from being appropriated to other

projects. Nearly three-quarters (74%) of businesses

surveyed support legislation prohibiting the use of STF

money to cover General Fund shortfalls; 15% are unsure

about the issue.

Even after the new law takes effect and the fund is

preserved, however, there are other concerns. The number

of bridges in need of repair is growing at a rate that will

“With transportation needs far

outpacing available funding,

Connecticut must put every dollar to

good use. Turning available funding

into designed and constructed

projects as quickly as possible will

have a positive and lasting effect on

Connecticut’s workforce, infrastructure,

and economy. In today’s transportation

marketplace, every penny counts.”

Donald J. Shubert | President Connecticut Construction Industries Association

Has the recent increase in Connecti-cut’s gas and diesel taxes had an impact on your business?

n Yes—a large impact

n Yes—some impact

n No impact

29%29%

43%


render the state’s gas and petroleum products gross

receipts taxes insufficient to cover the costs. Furthermore,

tax revenue for transportation maintenance and repairs is

expected to plummet with the introduction of new federal

mileage standards that push automakers to produce more

fuel-efficient vehicles.

The reinstitution of tolls on state roads also was the subject

of considerable debate in the General Assembly. Prior

surveys showed substantial business support for tolls

coupled with dedicated funding for transportation, but

that support has waned to some extent. Today, fewer

than a third (32%) of businesses surveyed favor tolls on

Connecticut’s major highways; 36% would approve only

if funds were strictly applied to transportation needs.

ConclusionIn 1999 Michael Gallis, one of the nation’s leading

authorities on large-scale regional development strategies,

produced a report for the Connecticut Institute for the

21st Century. In it, he warned that without an adequate

transportation infrastructure and a strategic policy linking

its different transit assets, Connecticut would become

an economic cul-de-sac.

Fourteen years later, we have yet to develop a regional

strategy, and Gallis’s advice is more relevant than ever.

In an effort to boost Connecticut’s economic

competitiveness and growth potential, Governor Malloy

earlier this year launched an 18-month strategic initiative

called TransformCT, aimed at developing a blueprint

for a world-class transportation system. To that end, the

state Department of Transportation has solicited input

from residents and businesses through a series of public

meetings, focus groups, and surveys. The DOT will

consider public input in shaping that plan.

Results of our 2013 Connecticut Transportation Survey

also will be shared with elected officials and government

agencies to ensure that business perspectives and

priorities are integral to the plan; that appropriate weight

is given to capital improvements with the greatest

potential to advance economic development; and that

sustainable sources of funding are identified, leveraged,

and preserved. Unless the state better manages its

budget and improves its economic competitiveness,

however, finding and maintaining the appropriate funding

for any new ideas that TransformCT identifies will be

challenging.

“Funding to make necessary

transportation infrastructure

improvements and expand capacity to

meet our needs is in short supply. We

need to wisely invest whatever amount

of federal funding we receive and

use the money in the state’s Special

Transportation Fund exclusively for

transportation projects. A broken

transportation system should not be

a barrier to economic activity.”

Eric Gjede | Assistant Counsel, CBIA


MethodologyThis survey was emailed to top executives at about

6,000 firms statewide in late September and early

October 2013. We received 651 responses, for a return

rate of 10.9% and a margin of error of +/-3.92 %.

All figures are rounded to the nearest whole number

and may not total 100%.

DemographicsIndustries represented in the survey:

Professional services (26%)

Manufacturing (23%)

Construction (14%)

Wholesale distribution (10%)

Finance, insurance & real estate (8%)

Retail (7%)

Social services, nonprofit (5%)

Medical (4%)

Hospitality & tourism (3%)

ABOUT THE SURVEY

26%PROFESSIONAL

SERVICES

23%MANUFACTURING

14%CONSTRUCTION

10%WHOLESALE

DISTRIBUTION

8%FINANCE,

INSURANCE & REAL ESTATE

7%RETAIL

MEDICAL (4%)

HOSPITALITY & TOURISM

(3%)SOCIAL SERVICES,

NONPROFIT (5%)


UIL Holdings CorporationHeadquartered in New Haven, Connecticut, UIL Holdings

Corporation (NYSE:UIL) is a diversified energy delivery

company serving more than 700,000 electric and natural

gas utility customers in 66 communities across two

states, with combined total assets of over $4 billion.

UIL is the parent company of The United Illuminating

Company (UI), The Southern Connecticut Gas

Company (SCG), Connecticut Natural Gas

Corporation (CNG), and The Berkshire Gas Company

(Berkshire), each more than 100 years old. UI provides

for the transmission and delivery of electricity and other

energy-related services for Connecticut’s Greater New

Haven and Bridgeport areas. SCG and CNG are natural

gas distribution companies that serve customers in

Connecticut, while Berkshire Gas serves natural gas

customers in western Massachusetts. UIL employs

more than 1,850 people in the New England region.

Edison Electric Institute Winner

Emergency Response Award for Restoration, 2011 & 2012

Emergency Response Award for Assistance, 2012

Visit uil.com.

ABOUT THE SPONSOR


Connecticut Business & Industry AssociationCBIA is Connecticut’s leading business organization,

with 10,000 member companies. Our public policy staff

works with state government to help shape specific

laws and regulations to support job creation and make

Connecticut’s business climate competitive. Our councils,

committees, and roundtables give our members forums for

influencing the legislative and regulatory processes.

One of CBIA’s most important functions is to provide our

members with information to help them better manage

their businesses. We conduct training seminars and

workshops; arrange for consulting services; and hold

conferences on environmental regulations, health and

safety, human resources, compensation and benefits,

taxes, energy, economic conditions, and healthcare.

Our free telephone consulting service gives members

access to our experienced staff of professionals on

a wide range of business topics.

Many CBIA members take advantage of our employee

benefits plans, discount programs, and group purchasing

opportunities. These include innovative health and dental

insurance programs through CBIA Health Connections—

CBIA’s private-sector health insurance exchange—as

well as other insurance lines, retirement plans, a COBRA

continuation program, group energy purchasing, and

member discounts on everything from packaging

materials to background checks.

Learn more at cbia.com.

ABOUT CBIA

350 Church St., Hartford, CT 06103-1126 | 860.244.1900 | cbia.com

CONNECTICUT TRANSPORTATION2O13

SURVEY

connecticut transportation 2o13 surveyexisting challenges and costs texas a&m transportation...

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