Research by ARTBA and the U.S. Bureau of Labor Statistics (BLS) confirms that material prices for highway construction projects are increasing faster then the general price level.
BLS reports the July 2004 producer price index (PPI) for highway and street construction increased 9.2% when compared to July 2003. There was a 3% increase in general prices during the same time period. The PPI is a measure of the relative cost of constructing highways and streets based on the prices of material inputs such as asphalt, steel, cement or aggregates. The index does not include labor costs.
ARTBA's Quarterly Transportation Construction Industry Conditions Survey provided further evidence of higher market prices. Ninety-one percent of contractor respondents indicated paying more between April and June 2004 for construction materials used in transportation projects compared to the preceding months. Sixty-five percent said wages and salaries increased between April and June 2004 compared to the preceding months.
