US transportation construction up in 2006

The 2006 US transportation construction sector was “the most robust in more than 20 years” with the value of work on highways, bridges, airports and transit systems up +15% over the last year, according to the American Road & Transportation Builders Association (ARTBA).

Fuelled by increased federal, state and local highway investments, a US$ 2.3 billion congressional appropriation for repair work on highways damaged by Hurricane Katrina, and greater investments in rail freight, the total value of construction performed on transportation projects is expected to hit a record US$ 106 billion in 2006, up from US$ 92 billion in 2005, said ARTBA vice president of economics and research Dr William Buechner.

Highway and bridge construction provided much of the driving force for the 2006 growth, said Dr Buechner. The value of construction work on highways and bridges grew almost US$ 11 billion, +16%, to US$ 76.3 billion. “This is the largest increase since 1984, when Congress was funding extra highway construction to help end a severe recession,” said Dr Buechner.

“Some of the increased spending reflected higher construction costs, particularly for asphalt, cement and aggregates. But, even after accounting for higher costs, the real increase in highway and bridge construction was a “robust” +8% or more,” added Dr Buechner.