WASHINGTON--(BUSINESS WIRE)--Spending on energy-related, building equipment and sustainable transportation can stimulate regional economic activity and new business development, according to results announced today from regional studies conducted by Economic Development Research Group and Siemens at the Infrastructure Week kickoff event in Washington, D.C.
Now in its third year, Infrastructure Week is coordinated by America’s business and policy leadership to drive awareness of how the neglect of American infrastructure has affected the country’s global competitiveness and Americans’ livelihoods. From transportation systems to the energy grid, to the U.S. industrial base and smart buildings, in order to rebuild and renew these essential infrastructure networks, the country needs a long-term strategy built on intelligent technologies and digitalization, and collaboration between the public and private sectors. Elected officials and business executives will convene throughout the week to make the case for how investment in smart, agile and secure infrastructure systems will yield broad economic impact.
“When you spend on infrastructure, you get a multiplier effect that boosts productivity and attractiveness for investment,” said Eric Spiegel, President and CEO of Siemens USA. “Infrastructure Week brings much-needed attention to invest in the systems and structures that power the economies in our cities, states and across the nation. As a company that works with cities building the infrastructure of tomorrow in more than 190 countries around the world, we believe this is precisely the kind of focus we need to create jobs, growth and economic opportunity for American workers in the 21st century.”
Economic Impact Study
- Investing in smarter building technologies and energy efficiency upgrades on the University of Louisville campus helped directly and indirectly support a total of $35 million in new business sales and nearly 700 jobs – including new jobs that are supported by the savings achieved through the project’s implementation.
- Upgrading and expanding public transportation systems in Salt Lake City by the Utah Transportation Authority resulted in more than $225 million in business sales and 1,300 permanent jobs.
Two different smart city solutions – building technologies and public transportation – in Louisville and Salt Lake City were evaluated for their broader economic impacts. These effects are not only driven by increased short-term spending through local equipment, labor and service purchases, but also by the savings achieved from their efficient use of resources and longer-term economic benefits. Initial findings include:
- In Kentucky, the University of Louisville spent $45 million to make numerous energy efficiency upgrades in buildings across its campuses that are conserving water, electricity, and natural gas. The implementation of the two phases of these projects directly and indirectly supported local impacts estimated at over 600 jobs and $26 million in business sales. After project completion, the savings achieved beyond the cost of debt service (for the project) were then reinvested back into overall university operations and additional energy efficiency projects. This reinvestment has supported the creation of 70 jobs and an additional $9.3 million in business sales in the Louisville area over a three-year period – beyond the more than 600 jobs initially supported through project implementation.
- In Salt Lake City, a major driver in building the public rail transit extension was to reduce residents’ dependence on private vehicles and spur high-density development, thereby decreasing the region’s carbon footprint, improving local air quality and proactively managing congestion. The UTA TRAX (light rail) and FrontRunner (commuter rail) lines have supported development resulting in nearly 1,300 jobs. And by paying wages that are spent throughout the region, these jobs have directly supported an estimated $227 million in new business sales. Salt Lake City also saw more and higher-density economic development being spurred around transit projects to appeal to companies and developers seeking such access. Major companies including Adobe, eBay, Goldman Sachs, Overstock.com, and Workday have made office location decisions based in part on proximity to TRAX and FrontRunner stations.
Intelligent Infrastructure Solutions
With 81% of Americans already living in cities and their suburbs – and a projected 100 million more residents expected by 2050 according to UN data – intelligent infrastructure has become a high priority as urban areas look to build and reshape their communities. Urbanization, population growth, climate change and dwindling resources put increasing pressure on infrastructure systems, and operators are looking for intelligent solutions to respond.
Siemens provides sustainable technologies for metropolitan areas to help move people and goods safely and efficiently, while improving the environmental footprint. Siemens’ portfolio for infrastructure includes complete traffic and rail transportation systems, efficient energy supply and environmentally compatible building technologies. Siemens also provides ways to modernize how power is transmitted and distributed to enhance the smart consumption of electricity.
Discussion and demonstration of some of these technologies will be on display at a number Infrastructure Week events Siemens both supports and will participate in, including:
- Amtrak Train Day, May 9: Amtrak Train Days kicks off at Chicago Union Station, and Siemens and train enthusiasts will be following along at #AmtrakTrainDays. Additional events will occur throughout the year, including in Sacramento, home to Siemens’ solar-powered rail manufacturing hub.
- “Investing in America’s Economy” Infrastructure Week kickoff digital event with Vice President Joe Biden and Bloomberg Government, May 11 (Washington, D.C.): Siemens USA CEO Eric Spiegel joins Vice President Joe Biden, U.S. Transportation Secretary Anthony Foxx and business leaders and policy experts to share perspectives on infrastructure’s impact on businesses, state and regional competitiveness – and highlight the transformations in infrastructure technology, investment, and policy shaping the future of U.S. companies.
- UI LABS Goose Island Facility Ribbon Cutting Event, May 11 (Chicago, IL): Dave Hopping, President of Siemens’ North American-based Building Technologies Division, will help celebrate the opening of the new UI LABS facility which will house the Digital Lab for Manufacturing and CityWorks programs. With more than 3,000 employees in Chicagoland, Siemens is a key technology partner for initiatives through its Product Lifecycle Management business unit and the Building Technologies Division, also providing building automation and controls in the new facility. CityWorks will address infrastructure challenges in four key areas: energy management, physical infrastructure, water and sanitation systems, and transportation and logistics systems.
- Internet of Things World, May 12 (San Francisco, CA): Mike Carlson, President of Siemens Smart Grid North America, will deliver a keynote address on “How Digitalization is Creating Smarter Cities”, highlighting the impact of big data on city operations and infrastructure including the grid. Carlson will also participate in a panel entitled “What is driving investment in Smart Cities and what does the investment climate look like?” and be joined by Jesse Berst, Chairman, Smart Cities Council; Jonathan Reichental, CIO, City of Palo Alto; Brian Harrington, EVP/Chief Marketing Officer, Zipcar; and Dr. Robert Griffin, Deputy Under Secretary for Science and Technology, U.S. Department of Homeland Security.
- Internet of Things World, May 12 (San Francisco, CA): Dr. Helmuth Ludwig, Executive Vice President of Siemens Digital Enterprise Realization and Chief Manufacturing Officer for Siemens PLM software, will deliver a keynote on “Industrial IoT: Challenge or Opportunity?”, highlighting how IoT is forcing manufacturers to embrace digitalization in order to transform their current product and production processes, ultimately strengthening their competitiveness.
- Infrastructure Week Advocacy Day on Capitol Hill, May 13 (Washington, D.C.): Steve Morrison, Business Development Director for Siemens U.S. Rail/Mobility, will join a bi-partisan group of senior leaders and influencers to challenge Congress to renew its commitment to bolstering American infrastructure.
- Manufacturers Alliance for Productivity and Innovation Executive Summit, May 14 (Chicago, IL): Raj Batra, President, Siemens Digital Factory U.S., will lead a panel discussion featuring Astec, Inc. and Park Industries. Topics to include aging industrial assets, what investing in advanced manufacturing looks like today and how digitalization is transforming the industrial base and boosting the economy.
- Portland Tri-Met First Ride-along on MAX Orange Line, May 15 (Portland, OR): Siemens U.S. Rolling Stock President Michael Cahill and Steffen Goeller, Head of Siemens U.S. Rail Electrification business, join U.S. Senator Jeff Merkley, Governor Kate Brown, and other elected officials to take part in the first ride on TriMet’s sixth light rail line set to open in September. Siemens is the technology partner for the project, serving as the MAX train manufacturer, electrification and signal provider.
- Bold Bets: Fast Forward to the Connected City, May 21 (Santa Monica, CA): Underwritten by Siemens, city, government and business leaders including Riverside Mayor Rusty Bailey, Los Angeles Deputy Mayor Rick Cole, Mesa Mayor John Giles, former Pennsylvania Governor Edward Rendell, Co-Chair Building America’s Future and Siemens USA CEO Eric Spiegel. These leaders will discuss how smart our cities will become as the software and hardware industries continue to converge, and urban infrastructures are becoming ever-more connected. With an eye toward efficiency and sustainability, The Atlantic will gather experts to explore how software innovation is transforming our cities.
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Siemens Corporation is a U.S. subsidiary of Siemens AG, a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for more than 165 years. With 343,000 employees in more than 190 countries, Siemens reported worldwide revenue of approximately $98 billion in fiscal 2014. Siemens in the USA reported revenue of $22.2 billion, including $5.2 billion in exports, and employs approximately 50,000 people throughout all 50 states and Puerto Rico.