Public agencies are increasingly facing a double whammy: transportation funding is decreasing, while the cost of construction materials is increasing.
Asphalt & related products are up 4.8% over 12 months ago, and iron and steel are up 14.3% over last year, according to Associated Builders and Contractors. Concrete products are down slightly compared to last year.
Less funding and higher costs mean fewer projects will get started, and fewer people will be hired.
Recently, the White House directed USDOT and other federal agencies to prepare 2013 budget scenarios that reflect a 5% cut and a 10% cut using 2011 as a baseline.
Source: “Construction Materials Prices 8.9% Higher than Last Year,” ForConstructionPros.com