The news from the Consumer Price Index (CPI) for March wasn’t as positive as hoped as inflation continues to hover at 3.5%, trending in the opposite direction of the targeted 2% Federal Reserve goal. The impact will likely mean no cuts to interest rates soon. While general wages remain high, a continued impact on borrowing power is expected. In the construction industry, non-residential infrastructure inflation is forecasted to still be 17% in certain segments. Again, not welcomed news as the cost of projects may impact decision-making at the state level since the dollars aren’t going as far as anticipated. ACPA has predicted a concrete paving market growth opportunity of 4% in FY24 and 5% in FY25 based on STIPs and available Infrastructure Investment and Jobs Act (IIJA) funding so, in general, things remain positive—although far from ideal. However, as we’ve cautioned, watch the August Redistribution dollars, which may be as high as $8.5B. States need all the dollars they can grab, even if projects are slow and steady.

New to this newsletter is a segment we will run providing information on efforts from the Reduced Carbon Concrete Consortium (RC3) which is a joint effort between ACPA, CP Tech Center, and engineer partners to assist DOTs with the Low Carbon Transportation Materials (LCTM), which puts almost $2B in play. Also, connected to these efforts is the technical support with Environmental Product Declarations (EPDs) for contractors. See the Reduced Carbon Concrete Corner for links to relevant announcements, websites and next steps for contractors on EPDs. ACPA is currently working on efforts to try to secure grants to provide offsets to contractors for the creation of EPDs.

The time to register for ACPA’s Mid-Year Meeting being held in Kansas City, MO on June 4-6 is now. Secure your hotel room to get the discounted rate. Speakers include Chris Klieman, the Head Coach at K-State. Register today here!