Several weeks we posted an article regarding a price increase alert. Unfortunately, the prediction was accurate and the industry is indeed seeing price increases of 4 to 7 Dollars Per Ton in May.
The price increase appears to be continuing without any sign of slowing down. All contractors incorporate a caveat in their contracts (varies from contractor to contractor) that their pricing is good for 15-30 day and increases are based upon what the asphalt plants must do, which is tied to the Liquid Asphalt Price index., and that is provided by the DOT in each state.
This is for materials, not labor, so the economic impact is somewhat mitigated.
Small repairs shouldn’t be affected drastically but it will have a much more significant impact on large repairs and major mill and pave projects. It should also be noted that sealcoat pricing is predicted to be increasing as well. It’s my guess that increase will be around 10-15%, dependent on the state and remoteness of the sites.
Please share this news with your Facility Managers as soon as possible. The Price Alert is designed to inform, not inflame.
We are in the beginning stages of the price increase, I recommend quick action on any work planned to be completed for mitigating the impact of the pricing trend.
The quicker Facility Management can turn around proposals submitted by their contractor base, the quicker we can lock down prices for their projects.
The time to act is now!