Highway Construction Costs Dropped 1.1% in Oct-Dec 2022 Quarter

After almost two years of explosive growth, the Federal Highway Administration’s metric of highway construction costs dipped in the fourth quarter of calendar year 2022 according to data released today.

FWHA’s National Highway Construction Cost Index (NHCCI) dropped to 2.763, a 1.1 percent drop from the all-time high in the previous quarter. However, costs are still up 48.5 percent from the level in the October-December 2020 quarter (when the NHCCI was just 1.860).

Digging into the data, a 3.1 percent drop in the cost of asphalt (due to declining oil prices) was somewhat offset by a 2.4 percent increase in the cost of grading and excavation (which is one of the more labor-intensive cost sectors, in a very tight job market).

By our reckoning, the result of the highway construction cost inflation in 2022 and 2023 has been to devalue the construction dollar to the point that FHWA has lost $24.1 billion in buying power, as shown in the calculations below. Obligation data is from usaspending.gov.

Total FHWA Obligations (Excluding Emergency Relief)

Nominal NHCCI “Real” Real Are
Obligations NHCCI Rebased to Obligations Less Than
Million $ Actual FY21 Q1 Million $ Nominal by:
FY21 Q1 4,506 1.8601 1.0000 4,506 0
FY21 Q2 9,859 1.9112 1.0274 9,596 -263
FY21 Q3 14,775 2.0363 1.0947 13,497 -1,278
FY21 Q4 23,238 2.1075 1.1330 20,510 -2,728
FY22 Q1 3,628 2.1821 1.1731 3,093 -535
FY22 Q2 8,490 2.2841 1.2279 6,914 -1,576
FY22 Q3 19,301 2.5555 1.3738 14,049 -5,252
FY22 Q4 31,279 2.7930 1.5015 20,832 -10,447
FY23 Q1 6,175 2.7628 1.4853 4,157 -2,018
TOTAL 121,252 97,154 -24,098

Search Eno Transportation Weekly

Latest Issues

Happening on the Hill


Related Articles

House Subcommittee Meets to Discuss Autonomous Maritime Technology, Submarines

Sep 22, 2023 | Kirbie Ferrell
September 19, 2023 - The House Subcommittee on Coast Guard and Maritime Transportation met to discuss the use of autonomous...

The History of the Inland Waterways Trust Fund

Aug 31, 2023 | Jeff Davis
August 31, 2023 - The story of the creation of, and changes to, the Inland Waterways Trust Fund

As Other Agencies Face Cutbacks, House Appropriators Give Corps Water Program 15% Increase

Jun 16, 2023 | Jeff Davis
June 16, 2023 - A draft bill approved in an House subcommittee yesterday would provide $9.6 billion in new funding...

Trade Subcommittee Discusses Strategies to Modernize Customs Policies

May 26, 2023 | Anusha Chitturi
May 26, 2023 - The House Ways and Means’ Subcommittee on Trade held a hearing on May 25 to discuss...

House T&I Approves 16 Surface and Maritime Transportation Bills

May 26, 2023 | Jeff Davis
May 26, 2023 - The House Transportation and Infrastructure Committee this week approved sixteen bills making discrete policy changes to...

House Committee Reviews Port Cybersecurity in Latest Hearing

May 12, 2023 | Garett Shrode
May 12, 2023 - On Wednesday, May 10, the Subcommittee on Transportation and Maritime Security under the House Committee on...

House Committee Approves 2-Year Coast Guard Authorization Bill

Apr 28, 2023 | Jeff Davis
April 28, 2023 - The House Transportation and Infrastructure Committee on April 26 approved a bipartisan, two-year Coast Guard and...

Maritime Industry Discusses Ocean Shipping Reform and More

Mar 31, 2023 | Anusha Chitturi
March 31, 2023 - The House T&I’s Sub-committee on Coast Guard and Maritime Transportation held a hearing on maritime transportation...

Senate Clears Defense/Water/Coast Guard Bill After Rejecting Manchin Permitting Amendment

Dec 16, 2022 | Jeff Davis
December 16, 2022 - Last night, the Senate voted to approve the 4,310-page legislative behemoth based on the national defense...

Defense Authorization Bill Adds WRDA, Coast Guard, MARAD, Drone Bills

Oct 14, 2022 | Jeff Davis
October 14, 2022 - The annual Pentagon policy bill took shape this week as one of the two must-pass vehicles...

House Hearing Outlines Need to Resolve Interagency Disputes for Enforcing Cargo Preference

Sep 15, 2022 | Philip Plotch
September 15, 2022 - This week, the House Coast Guard and Maritime Subcommittee held a hearing to discuss how to...

Senate Releases FY23 Corps of Engineers Funding While Passing WRDA Bill

Jul 29, 2022 | Jeff Davis
July 29, 2022 - Yesterday, the Senate Appropriations Committee released the text of its bill funding the Corps for the...


Related Articles