Construction Material Costs Skyrocket

A 22 percent increase in the cost of materials used for highway and street construction over the past two years is eroding the impact of the new federal highway bill and will likely limit the ability of the states to meet their ever-growing transportation needs, according to an analysis by the American Road & Transportation Builders Association (ARTBA). In 2005 alone, highway contractors paid 13 percent more for materials over the previous year, ARTBA's analysis of Bureau of Labor Statistics' data found. By contrast, the overall rate of inflation for 2005, as measured by the consumer price index, was just 3.4 percent. Of course the Catch 22 here, is that construction materials prices have seen only meager increases over the years. So the increases are overdue, but now that they are occuring, they stand to drain budgets sooner. Go figure. Your comment?