FutureStructure interviews Michael Wilson, Managing Director of Public Transportation for North America at Accenture, about why transit agencies should be investing in transportation asset management.
Welcome to FutureStructure Radio – a new feature of FutureStructure that will focus on interviewing public and private sector experts whose ideas, visions and experience will help shape the future of smart, sustainable and resilient cities.
Transportation systems across the U.S. are facing increasing challenges resulting from rapidly increasing costs, highly constrained funding and aging infrastructure. The U.S. Federal Transit Administration recently reported that the national transit State of Good Repair (SGR) is at a backlog of $86 billion and growing $2.5 billion annually. Recent research from Accenture shows that half of transit asset managers surveyed reported that their organization could not meet even 25 percent of their SGR backlog at current funding levels. The default response – to simply replace aging assets with new purchases – no longer works. To reduce the additional $2.5 billion SGR, transit agencies must select technology upgrades that will not only improve safety, more reliable service levels and lower costs, but also are the most cost effective to upgrade.
While asset management technology was deemed the most important items for future success by US transportation managers, it is also not surprising to learn that most transit agencies have yet to invest enough of their dollars in it. In fact, according to the research, for every $10 of total budget, organizations spend one penny on average to maintain or improve transportation asset managemen tools and systems.
Mike Wilson (pictured above right) is the Managing Director of Public Transportation for North America at Accenture. Mike was kind enough to spend some time talking about why transit agencies should be investing in transportation asset management.