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Underneath Trucks and Trains Lies What Moves Everything
When most people think about supply chain, they think of trucks, ships, trains, planes, even automobiles for eCommerce. But infrastructure is the backbone of any supply chain – indeed, any economy.
After all, those transportation modes have to move across something.
Trucks and cars need roads. Trains need railroad tracks. Planes need air terminals. Ships need ports and inland waterways – the list goes on.
So I was cautiously optimistic when I examined the latest ASCE Report Card on U.S. transportation infrastructure. The country received its highest grade in decades.
However, moving up from a C- to a C is not the kind of progress we want to see. Supply chain infrastructure is the backbone of our economy. And it requires sustained attention and investment to support supply chains now and in the future.
The Current State of U.S. Infrastructure
The nation’s incremental progress reflects recent federal investments, according to ASCE (the American Society of Civil Engineers).
ASCE particularly pointed to the Infrastructure Investment and Jobs Act (IIJA), which authorized $1.2 trillion for infrastructure spending between 2022 and 2026.
The report evaluated 18 infrastructure categories. While eight categories improved and seven maintained their previous grades, nine categories scored in the D to D+ range.
That’s depressing.
But knowing my penchant for remote and hybrid work options, I happily note that ASCE added broadband as a new category. Such connectivity is critical in a modern, digitally enabled economy.
Despite that improvement, we still have far to go. Broadband, for example, debuted with a C+ grade. And that was one of the highest letter grades.
Maybe we should transport everything via ships and trains. Ports and rail scored the highest, with a B and a B-, respectively. But no matter how you design a supply chain, at some point, goods must travel over bridges (a C) and roads (an abject D+).
Overall, ASCE estimates a staggering $3.7 trillion gap between current planned investments and what’s necessary. That gap represents potential vulnerabilities in our nation’s supply chains.
The Economic and Social Impact
Lack of investment could cost U.S. families nearly $700 per year and U.S. industries more than $1 trillion in gross output, according to data from ASCE.
Those numbers translate into lost jobs, higher consumer prices and diminished competitiveness.
Over the last few years, I’ve spent a lot of time talking with supply chain professionals about disruption. From the continuing Red Sea crisis to the Baltimore bridge collapse to the Panama Canal drought, these impacts ripple through the economy.
The 2024 hurricane season proved particularly devastating to U.S. transportation. Hurricanes Helene and Milton caused widespread damage to transportation infrastructure in the Southeast. Some critical routes still aren’t functioning at 100% capacity.
Yes, Interstate 40 has reopened near the North Carolina-Tennessee state line. But only one lane is open in each direction. And the maximum speed limit is 35 mph.
Nearby on Interstate 26, trucks and wide loads still face restrictions and detours at the N.C.-Tenn. state line, according to N.C. officials.
Such strained logistics networks delay manufacturing and the movement of goods nationwide. If we don’t get our act together, it won’t take a pandemic to shut down auto factories or healthcare services.
This reality underscores that infrastructure is key for resilience. Because as ASCE Chair Darren Olson noted, “Every American household or business immediately feels the impact of just one inefficiency or failure in our built environment.”
The consequences of our aging infrastructure are especially pronounced in supply chain operations. Because a single broken link can create cascading failures throughout the system.
Innovative Solutions and Success Stories
Despite these challenges, I’ve been encouraged by innovative approaches emerging across the country. The IIJA’s impact is already evident in the improved grades across multiple infrastructure categories. As Greg DiLoreto, a longtime member of ASCE’s Committee on America’s Infrastructure, observed: “Without IIJA, it’s pretty convincing that we would not have raised the grades.”
I’ve been particularly impressed by the increased focus on resilience in infrastructure planning. The 2025 ASCE report emphasizes the need for infrastructure that can withstand extreme weather events, which are becoming stronger and more frequent. This shift in thinking, from simply rebuilding to building better, represents a crucial evolution in our approach.
Public-private partnerships have also shown promise. When Hurricane Helene devastated parts of the Southeast, logistics companies deployed rapid response teams to help stabilize operations. These collaborative efforts demonstrate how the private sector can play a vital role in addressing infrastructure challenges.
The Road Ahead
As I look to the future, we stand at a critical juncture. Authorization for IIJA expires next year. So, Congress must decide how to fund these infrastructure programs in the future.
While maintaining these investment levels is essential, so is buy-in from other levels. We need to increase participation from state and local governments and the private sector.
The resilience challenge looms particularly large. With severe weather events intensifying, engineers must design infrastructure not just for today’s conditions but for tomorrow’s challenges. This means incorporating climate resilience into every aspect of planning and construction processes.
Our Infrastructure Journey Has Only Just Begun
America’s infrastructure reflects our national priorities and vision for the future. While recent investments have yielded improvements, the journey toward resilient, modern infrastructure requires sustained commitment from policymakers, businesses and individuals.
We can and must do better. The $3.7 trillion investment gap identified by ASCE represents both a challenge and an opportunity. By addressing our aging infrastructure, we can strengthen supply chains, enhance economic competitiveness and build communities ready for future challenges.
The roadblocks ahead are significant.
But with collaborative effort and strategic investment, we can build an infrastructure network that supports a prosperous, equitable and resilient America.
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Jim Tompkins, Chairman of Tompkins Ventures, is an international authority on designing and implementing end-to-end supply chains. Over five decades, he has designed countless industrial facilities and supply chain solutions, enhancing the growth of numerous companies. He previously built Tompkins International from a backyard startup into an international consulting and implementation firm. Jim earned his B.S., M.S. and Ph.D. in Industrial Engineering from Purdue University.