The U.S. Department of Transportation's Federal Highway Administration (FHWA) today released its latest National Highway Construction Cost Index (NHCCI 2.0), a quarterly estimate of the rising cost of domestic highway construction and maintenance over time.
NHCCI 2.0 is the first major revision since FHWA created this index in 2007, and reflects steadily rising costs of highway construction and repair. Though the data fluctuate slightly each quarter due to a variety of factors, including market conditions, labor supply, materials costs and inflation, the latest figures show that highway construction costs today have climbed by 67% compared to similar costs in 2003.
Key highway components, as measured by the Bureau of Labor Statistics, like asphalt, concrete and metal, grew at 107%, 61% and 45% respectively between 2003 and 2016.
Many states track their own construction costs, with some experiencing much higher inflation than others. For example, California’s composite cost index increased by 143% between 2003 to 2016, while Texas’ increased by 122% over the same period.
Click here to review the entire NHCCI 2.0.
Source: Federal Highway Administration