The U.S. Federal Highway Administration (FHWA) recently released the newest National Highway Construction Cost Index (NHCCI), which estimates the rising cost of domestic highway construction and maintenance over a period of time.
The report’s publication marks the first time the index, now known as NHCCI 2.0, has been published with the agency’s new methodological guidelines, which were implemented to improve reporting accuracy.
According to index figures, highway construction costs nationwide grew by an estimated 68 percent over the last 13 years. Between 2003 and 2016, asphalt costs rose by 107 percent, concrete grew by 61 percent, and metals increased by 45 percent, each of which are classified by the FHWA as key highway components.
The FHWA noted in a release that its figures fluctuated slightly from quarter-to-quarter due to a number of factors including market conditions, labor supply, materials costs, and inflation.
Individual states also track similar costs, with some states experiencing much higher inflation rates than others. The report notes that California’s composite cost index rose by 143 percent between 2003 and 2016 while Texas’ index increased by only 122 percent over that same time period.
FHWA is an agency within the U.S. Department of Transportation responsible for supporting the design, construction, and maintenance of the nation’s highway system through its Federal Aid Highway Program.