ForConstructionPros.com

"Construction costs are going up much faster than highway construction budgets," says Alison Premo Black, the ARTBA research economist who conducted the analysis. "Last year, Congress enacted a new highway bill that increases federal funding for highways about 4.5 percent per year. This is only a fraction of the recent rise in construction costs. State governments will need additional financial resources to move forward on transportation projects that could improve road safety and reduce traffic congestion."

Black's analysis found that materials and services account for about one half of total project costs.

Increases have hit a number of important highway construction materials including iron and steel, which rose more than 60 percent in two years; asphalt paving mixtures up 10 percent; construction sand, gravel and crushed stone up 11 percent; and ready mix concrete up 18 percent. The cost of construction machinery rose 10 percent, while diesel fuel for construction vehicles rose 88 percent in two years.

Black says highway contractors are facing much higher material price increases than other sectors of the construction industry. Material prices for non-residential construction were up 7.6 percent in 2005, maintenance and repair construction material prices were up 8.7 percent, and residential construction material prices increased 7.9 percent. These differences are due to the different types of materials used in the construction process, she says.

Ingersoll Rand Celebrates Milestone
Blaw-Knox marks 75th anniversary
Ingersoll Rand Co. is preparing to celebrate a major milestone in the paving industry with the company's Blaw-Knox product line.