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ARTBA Top Economist: 2006 was a Record Year for Transportation Construction Market
The 2006 U.S. transportation construction market was the most robust in more than 20 years with the value of work on highways, bridges, airports and transit systems up 15 percent over the last year, according to the American Road & Transportation Builders Association (ARTBA).

Fueled by increased federal, state and local highway investments, a $2.3 billion congressional appropriation for repair work on highways damaged by Hurricane Katrina and greater investments in freight rail, the total value of construction performed on transportation projects was expected to hit a record $106 billion in 2006, up from $92 billion in 2005, says ARTBA Vice President of Economics and Research Dr. William Buechner.

Highway and bridge construction provided much of the driving force for the 2006 growth. The value of construction work on highways and bridges grew almost $11 billion — or 16 percent — to $76.3 billion—the largest increase since 1984, when Congress was funding extra highway construction to help end a severe recession.

Some of the increased spending reflected higher construction costs, particularly for asphalt, cement and aggregates. But, even after accounting for higher costs, the real increase in highway and bridge construction was a robust eight percent or more, Buechner, a Harvard-trained economist, says.