Economic Analysis

Transportation is a critical element of success for regions competing in today’s global economy. Public and private leaders seek to invest in transportation systems that will ensure each region’s success in global markets. In addition, decision-makers seek clear, rigorous, and timely analysis of how much economic benefit will be generated from competing infrastructure investments. Cambridge Systematics is recognized nationally for its work with federal, state, and local agencies to plan and manage transportation systems in a way that supports broader economic goals. We also apply our core skills in consensus-building, strategic planning, market research, and decision support to help establish state and regional economic development strategies.

Our Services

• Economic Impact Analysis. Cambridge Systematics is renowned nationally for evaluating the economic development impacts of major infrastructure investments. We pioneered the use of econometric models to assess the full economic impact of major transportation infrastructure investments, and adapted these techniques to evaluate other public investments and policies, including military base expansions and closures, utility mergers, environmental policies, growth management policies, and other public infrastructure investments. We combine these techniques with traditional benefit/cost analysis to provide our clients with a clear understanding of the real benefits and costs of investments.
• Prioritization and Decision Support Tools. Faced with shrinking budgets and deteriorating assets, government must consider ways to invest resources wisely. Cambridge Systematics has developed economic analysis tools that support better decisions on resource allocation, needs assessment, and project selection. We have developed the Federal government’s primary economic analysis tools for the transportation industry, many of them employed by hundreds of transportation executives at the state, regional, and local levels. These include the Highway Economic Requirements System (HERS) and the Surface Transportation Efficiency Analysis Model (STEAM). We also have worked with numerous state departments of transportation (DOT) and metropolitan planning organizations (MPO) to develop tools for assessing the economic impacts of transportation investments and supporting informed decision making. These tools include innovative use of geographic information systems (GIS) to make transportation and economic information accessible to decision makers and the public, and enhance coordination between stakeholders.
• Economic Development. Cambridge Systematics works with states and regions to develop strategies for enhancing competitiveness in global markets through investments in transportation infrastructure and other public policy areas. We are familiar with the broad range of economic development programs and tools that can be applied in conjunction with infrastructure investments and public policy changes to improve a region’s competitiveness. Cambridge Systematics staff work with both public and private entities to encourage participation in programs and investments to support economic growth in a region. Recent statewide economic development planning efforts were conducted in Florida, Kansas, and Mississippi, all of which are now being implemented.
• Innovative Finance. Cambridge Systematics staff work at the state, regional, and local levels to design and implement financing strategies that integrate private investment with highly leveraged public funding. We are able to forge consensus and cooperation among diverse private firms and public agencies because we understand the risk and return criteria of private investors and the institutional constraints faced by public agencies. We have experience with tools ranging from debt service and cash management to impact fees and private/public partnerships.

Why Cambridge Systematics

Cambridge Systematics is a national leader in evaluating the economic impacts of transportation policies, programs, and projects. For more than 30 years, our projects have addressed every mode of transportation, and have supported better decisions on infrastructure improvements and investments, operational enhancements, and pricing strategies. Over the past five years, we have led studies that examine the relationship between transportation and economic growth for state DOTs, MPOs, and transit authorities in Arizona, California, Colorado, Florida, Georgia, Indiana, Montana, New York, Ohio, Oregon, Washington, Wisconsin, and other states. Cambridge Systematics has led several landmark efforts, including development of Florida’s Strategic Intermodal System to better link the State’s transportation and economic strategies; economic analysis of improvements to corridors of national significance, such as I-95 along the eastern seaboard, I-69 in Indiana and Texas, and I-5 in Washington and Oregon; analysis of the value of investment in the nation’s largest public transit systems, including those in New York, Los Angeles, Chicago, and Philadelphia; and development of leading-edge analytical tools such as the Indiana DOT’s Major Corridor Investment-Benefit Analysis System and the Montana DOT’s Highway Economic Analysis Tool (HEAT).

Our work has helped state and local agencies make better decisions about selecting projects and allocating resources; helped chambers of commerce and industry associations build a case for strategic investments in transportation and economic development; and helped elected officials better understand the value of state and local investment in transportation and other foundations for a competitive economy. Our work has led to development of some of the nation’s largest infrastructure projects; successful legislative enactment of sweeping changes in transportation investment strategies and other public policies; and major shifts in the programming and prioritization process in some of the nation’s largest transportation agencies.

You can learn more about our economic analysis services from examples of our recent work.