According to Dr. Jean DellAmore, president of Stertil-Koni, the Federal Reserve’s decision to increase interest rates by a quarter point will spur new capital expenditures on infrastructure projects, especially vehicle maintenance facilities serving municipalities and transit agencies across the U.S.

“It’s apparent that the Fed is telegraphing that it will be patient with future rate increases. After all, the recovery is far from robust. At the same time,” said DellAmore. “In what could appear to be an economic example of inverse logic, the specter of increased borrowing costs may actually have a positive impact – potentially driving municipalities to lock-in their cost of borrowing for new capital projects now, but with a caveat – the projects must be cost-effective. In essence, the central bank’s action creates a sense of urgency, and that in turn will contribute to greater economic growth.

“The bottom line is that big public projects will continue. However, cost controls will likely play an even larger role in securing approvals for local governments, state agencies and municipalities across the country.”

Stertil-Koni, a brand of the Stertil Group, is a provider of heavy duty vehicle lifts specifically bus and truck lifts.