The price tag for any number of infrastructure projects is seeing an increase of at least 20% due to inflation, says a new report.
In some cases, the increase has been as high as 40%.
Such projects are supposed to be funded via the Infrastructure Investment and Jobs Act, but estimated project costs frequently rise depending upon the costs of such materials as asphalt, concrete, and fabricated structural metal.
All those material categories have seen price increases in recent months of anywhere from 14% to 23%, says the Pew Stateline report.
Projects have also been challenged by the cost of fuel, which saw a dramatic increase earlier this year.
Several months ago, Missouri Representative Sam Graves, during a House Transportation & Infrastructure Committee roundtable, noted: “Companies, states, and local governments are struggling with the cost of fuel, materials, equipment, and everything that goes into planning projects and building our infrastructure.”
Graves added that matters “will only get worse if we go into the recession that many economists are predicting.”
According to the Pew Stateline report, “Transportation officials say supply chain disruptions also are extending the time it takes to get and deliver materials and equipment.”
State transportation departments across the country are getting up to $350 billion over a span of 5 years because of the Infrastructure and Jobs Act legislation. But that funding doesn’t consider material price increases.
Despite such challenges, notes the Pew Stateline report, states are moving ahead on an estimated 29,000 transportation projects funded through the legislation.
By Garry Boulard
