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June 20, 2017 02:00 AM

New geosynthetics coalition wants infrastructure spending, import relief

Steve Toloken
Assistant Managing Editor
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    Tensar Corp.
    The Coalition to Promote the Adoption of Geosynthetics is meeting with lawmakers to promote the use of geosynthetics in infrastructure projects such as road construction.

    With the U.S. government debating large new spending programs for infrastructure, a group of U.S. manufacturers and distributors of plastic geosynthetics have formed a new coalition to try to increase use in roads and infrastructure.

    The group, the Coalition to Promote the Adoption of Geosynthetics (CPAG), also said they plan to lobby for higher tariffs on imports, possibly targeting China, India, the Middle East and other parts of Asia.

    Executives with the four member companies — Propex Operating Co., Tensar Corp., Hanes Geo Components and Tencate Geosynthetics Americas — said they see opportunities with Trump administration plans to boost spending on roads and other government spending projects.

    Steve Toloken

    Gorey

    "The current administration's interest in infrastructure and attending to infrastructure, combined with the budget limitations at the federal level, we felt like this was an opportune time for our industry to reintroduce our technology at the federal level and increase adoption," said Michael Gorey, president and CEO of Propex in Chattanooga, Tenn.

    Geosynthetics made from polypropylene or polyethylene can be used as inner layers in roads, drainage or highway walls. CPAG said they can make roads more stable and last longer, as well as save money by reducing the thickness of layers of rock aggregate used under roads.

    The group came to Washington June 14-16 to meet with government officials, its first major activity since forming earlier this year. In a group interview, representatives from the four companies said they saw it a unique time in Washington.

    "This environment that appears to be evolving in Washington appears to be one of acceptance of change," Gorey said.

    CPAG materials argue that geosynthetics can reduce highway construction costs by $50,000 per lane mile and are being used in less than 10 percent of possible applications. More widespread use of geosynthetics could save the U.S. $5 billion a year in construction costs, they say.

    "Our roads could be built to last two or three times longer at the same cost as current construction," said Michael Lawrence, CEO of Alpharetta, Ga.-based Tensar.

    The group said it wants to build on a 2015 law signed by President Obama, the Fixing America's Surface Transportation, or FAST, Act, which has language encouraging the use of geosynthetics in Federal Highway Administration projects.

    But CPAG member said the law could be implemented more forcefully.

    "That's really the disconnect we see, though the FAST act encourages the evaluation of geosynthetics in projects, there's really no step to review or confirm that as the funding flows out to the state level," said John Dowdell, president of Hanes Geo, based in Winston-Salem, N.C.

    Steve Toloken

    Dowdell

    California and Texas have led in adopting geosynthetics, but wider use of new technology and methods sometimes meets resistance in road construction, said CPAG Executive Director Michael Taylor.

    CPAG said Europe and some developing countries make much wider use of geosynthetics in road building, and said it's a proven technology.

    "We're spending way too much time trying to convince the same people over and over again to adopt the technologies in their specifications," Gorey said.

    Coalition to Promote the Adoption of Geosynthetics

    An example from the geosynthetics trade group on how it can be used in infrastructure projects.

    Tariffs on imports

    Gorey said the industry has "been under siege" by imports that have increased by 100 percent since 2012, and now represent about 35 percent of the market.

    While CPAG has not filed any formal trade complaints, the coalition said in briefing papers that a 35 percent tariff would protect the 12,000 jobs in the U.S. geosynthetics industry. The group estimated that 1,500 more jobs would be created if all geosynthetics were made in the U.S.

    The coalition argues that Asian producers have raw material and labor cost advantages, in addition to tariff advantages.

    CPAG said Indian and Chinese manufacturers can send their products to the U.S. with no tariffs but U.S. geosynthetics face tariffs of 27 percent on exports to China and 29 percent to India.

    "The three manufacturers here have operations all over the world, it's not like we're U.S. centric," said John Henderson, president of Tencate, in Pendergrass, Ga. "It's really fair trade, that's what we're after."

    But there are signs that not all four members of CPAG see eye to eye on all aspects of trade.

    Dowdell, from Hanes Geo, said that his company challenged an earlier duty protection that Tensar successfully petitioned and gained from the U.S. government, against Chinese makers of some geogrid products.

    "The Hanes Geo business actually challenged that finding because we do source from global supply and they do make wonderful products," Dowdell said. "The bottom line is the economics today dictate that buying pattern."

    Hanes Geo distributes geosynthetics that it buys globally, while the other three GPAG members are manufacturers.

    The coalition members said they would reassess after their initial meetings with government officials. They noted that all of them are members of the Roseville, Minn.-based Geosynthetics Materials Association, but formed the new group to provide an additional push on their issues.

    "Once we get through this step, we'll come back from it and see what we feel we've accomplished or not accomplished, [and] we'll define what's next," Gorey said.

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