Price Increase Confirmed – Unfortunately!

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.

Click chart for a larger image

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!

Best Regards,
Henry Miller
PS: Feel Free to reach out to me to discuss if you have any questions, comments or concerns about the content of this email.
Pavement Exchange Group
(855) 506-7251 (TOLL FREE)

Mileage Contest

Currently, there are 4.12 million miles of road in the United States, according to the Federal Highway Administration, including Alaska and Hawaii. The core of the nation’s highway system is the 47,575 miles of Interstate Highways, which comprise just over 1 percent of highway mileage but carry one-quarter of all highway traffic. The Interstates plus another 179,650 miles of major roads comprise the National Highway System, which carries most of the highway freight and traffic in the U.S.

Most of the roads in the U.S., 2.94 million miles, are located in rural areas, with the remaining 1.18 million miles located in urban areas. Local governments are responsible for maintaining and improving 3.18 million miles of road or 77.3 percent of the total. State highway agencies are responsible for over 780 thousand miles of road, or 19.0 percent. The federal government is responsible for only 150 thousand miles of road or 3.7 percent, largely roads in national parks, military bases and Indian reservations.

Of the 4.07 million miles of road, about 2.68 million miles are paved, which includes most roads in urban areas. However, 1.39 million miles or more than one-third of all road miles in the U.S. are still unpaved gravel or dirt roads. These are largely local roads or minor collectors in rural areas of the country. (Source: Highway Statistics 2013 Table HM-20HM-10HM-12HM-15VM-202)