On Tuesday, FHWA released nearly $60B in FY23 funding representing its second round of apportionments under the Infrastructure Investment and Jobs Act (IIJA). The funding supports 12 formula programs at a level that is 25 percent higher than pre-IIJA levels. Funding will support programs like the Carbon Reduction Program and the Surface Transportation Block Grant Program. It’s welcome news that regular and reliable federal funding is making its way to the states, but is this federal funding coming at a time when its robust levels can be the least impactful and keep up with needed investments? Also, are market forces causing state DOTs to be conservative with project planning and project timing in order to account for inflation and supply concerns?

Recently, ACPA and its Chapter/State Executives sat down with FHWA representatives to discuss issues facing the concrete paving industry, including the Biden Administration’s prioritization of sustainability, resiliency and carbon reduction through the use of environmental product declarations (EPDs). The group also discussed the need to promote the fact that concrete paving does not necessarily restrict the ability to reopen lanes quickly. In all, ACPA’s message was clear: concrete is a cost-effective and smart option when considering a variety of objectives, including the overall life cycle of the project. But the conversation also included mentioning difficulties faced by materials and construction groups across the country, tightening of supply, workforce shortages and inflationary impacts.

ACPA had turned its attention to this issue a few months ago when it interviewed American Trucking Association President and CEO Chris Spear for its Concrete Considerations podcast to discuss trucking constraints and the ability to meet high demand. Although it was noted that demand may be softening giving indications that a recession could be possible, and in fact a recession is now being predicted by many economists, the overall cost of materials and labor remains high. Ed Sullivan, PCA’s economist, noted that although he doesn’t have a crystal ball, conditions could remain uncertain through FY23 – two full years into the five-year authorization of the IIJA.

So, what does this all mean for concrete paving contractors and ACPA members? First, if state DOTs are being conservative in project planning and the use of federal dollars aren’t stretching as far as they could, the case for concrete paving is needed now more than ever in that there is no other material that produces long-life pavement while meeting all of the sustainability and resiliency objectives the way concrete can. Secondly, if dollars truly aren’t going as far as they would in a more favorable economy, it is critical that the federal government remain engaged on infrastructure investments. The IIJA enactment can’t be the end of the story, as our infrastructure needs as a nation persist. The federal government needs to not only regularly pass routine appropriations bills but also ask questions about whether first-cost or low-bid environments meet our global or social needs. In short, because the economy is uncertain, the needs of the people don’t go away.

To help our members continue to evaluate market conditions, including supply, Ed Sullivan will speak at ACPA’s Annual Meeting, and a lunchtime panel of contractors who’ve been in the industry for some time will discuss bidding tips during times of tight materials supply and the continued need to promote proper maintenance as part of achieving long-life pavements.

Also, check out the news stories below: four On The Grade stories spanning from Michigan to Colorado, new information about the Annual Meeting, an opportunity to recognize those who have dedicated their career to our industry, a webinar from the Southwest Concrete Pavement Association, an industry day with Illinois DOT, a new study from MnDOT on FRC, a concrete upgrade to a US-Canada trade route, and information about the Thriving Communities Program.

Cheers!