Road material costs on the rise
Asphalt and cement prices have gone up 22% over the past two years. With the federal government kicking in just 4.5% annually for road construction, it's increasingly difficult for road projects to be properly funded and completed on time. Source: American Road and Transportation Builders Association
With no end in sight to rising oil prices and the increasing global demand for cement, transportation projects continue to experience significant delays.
According to the American Road and Transportation Builders Association, highway and street construction costs increased 16.4% in May 2006 compared to May 2005. Over the past two years, material costs have jumped 22%.
Unfortunately for public works departments, supply costs are rising faster than municipal budgets. Federal funding for highways is set to increase 4.5% each year until SAFETEA-LU is no longer active. With construction costs exceeding the allotment outlined in SAFETEA-LU, additional financial resources will be necessary to pay for and complete transportation projects on time.
For more information, visit www.artba.org.