 |
APAI ARTICLE ARCHIVES (www.apai.net)
Asphalt Paving Association of Iowa 116 Clark Avenue, Suite C Ames, Iowa 50010 Phone (515) 233-0015 Fax (515) 233-0017 |
FROM THE DESK OF THE EVP Asphalt Costs Remain Competitive in Light of Oil Hikes
As stated by the National Asphalt Pavement Association, contrary to what logic might suggest, recent increases in the price of oil have not forced asphalt paving costs beyond what could be considered a standard rate of inflation. In fact, asphalt has sustained one of the lowest cost increases of any building material over the last two years. According to a study by American Road and Transportation Builders Association research economist Alison Premo Black, the cost of HMA pavement material has risen only 10%, while ready-mix is up 18% and steel up 60% (ref.: www.roadsbridges.com). Hot Mix Asphalt continues to be the most economic value for pavements, in the initial cost to construct, in the total cost to maintain, and beyond the engineered analysis period. According to the Iowa Department of Transportation’s “Price Trend Index for Highway Construction” report, the cost of Hot Mix Asphalt has increased at an average rate of 2.8% annually over the 20 year period. Looking beyond the standard pavement life analysis period, because an HMA structure ages from the top down, only the surface course ever requires periodic renewal, the main structure remains intact saving the tax paying public time and money. |
