News for the Hospitality Executive
|Phoenix, AZ (Wednesday, May
18, 2011) -- The lack of an ongoing,
sustainable and strategic commitment to rebuild and expand its
will begin to seriously weaken the US’s competitive position in the
years, predicted Howard Roth, Ernst & Young’s Global Real Estate
Leader. The warning came during an address today to
urban planners, architects as well as real estate developers, investors
lenders attending the Spring Meeting of the Urban Land Institute (ULI)
Phoenix, AZ. The ULI and Ernst & Young released the
latest results of their annual joint global infrastructure survey on
this week. http://www.ey.com/Publication/vwLUAssets/2011_infrastructure_report_setting_strategic_priorities/$FILE/Real
Roth said that while the forecast may look grim, there are some immediate options that can help close the gap and also help the country create sustainable jobs:
In contrast, the mainstay of the recent US approach to infrastructure improvement – the federal economic stimulus program -- peaked in 2010 at just over US$20 billion, and will see a significant reduction in outlay next year and through to 2020. In addition, state and municipal authorities are dealing with what has become for most “an era of less” – less revenue, less capital for investment and less ambition to address the infrastructure challenge, even though voters rank building and maintaining our infrastructure as a key goal. “It’s hard to see a comprehensive approach to addressing infrastructure issues here in the US,” Roth said, adding “the stimulus helped, but it was only a down payment on what’s needed.” The American Society of Civil Engineers (ASCE) has projected that the US needs to invest US$2 trillion over the next five years just to maintain its existing infrastructure.
"As if the past few years of economic debilitation haven't been enough, in just the past few months we’ve had major setbacks by Mother Nature on several fronts. Tornadoes, floods and other major catastrophes have damaged a lot of what the US did have in place last year, and they are an additional wake-up call that the nation’s foundation needs constant attention. Rebuilding the US is no longer an option, it’s a necessity – and one that requires a strategic and considered approach if we are to remain a global leader,” he said.
About Ernst & Young’s Global Real Estate Center
Today’s real estate industry must adopt new approaches to address regulatory requirements and financial risks, whilst meeting the challenges of expanding globally and achieving sustainable growth. Ernst & Young’s Global Real Estate Center brings together a worldwide team of professionals to help you achieve your potential — a team with deep technical experience in providing assurance, tax, transaction and advisory services. The Center works to anticipate market trends, identify the implications and develop points of view on relevant industry issues. Ultimately it enables us to help you meet your goals and compete more effectively. It’s how Ernst & Young makes a difference.
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Ernst & Young is a global leader in assurance, tax, transaction and advisory services. Worldwide, our 141,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve their potential.
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This news release has been issued by Ernst & Young LLP, a client-serving member firm of the global Ernst & Young organization in the U.S.
About the Urban Land Institute
The Urban Land Institute (www.uli.org) is a global nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has nearly 30,000 members representing all aspects of land use and development disciplines.
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Ernst & Young Report Indicates 2011 will see Reawakening of
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