With the U.S. poised to invest heavily in roads and highways and as legislation designed to expand major infrastructure projects looming on the horizon, a report released by the Portland Cement Association (PCA) points to how concrete is fast emerging as not only the more cost-effective long-term solution for road construction, but also as a far less-expensive initial investment.
The report, “Update: Paving, The New Realities,” written by PCA Chief Economist Ed Sullivan, compares the cost for one mile of standard two-lane roadway (concrete vs. asphalt) calculated with estimating software used by state departments of transportation (DOTs).
In the past, initial bid costs have long favored asphalt roads. Six years ago, asphalt held a $120,000 initial bid cost advantage versus a concrete-paved road. Today that situation has reversed completely. Concrete now enjoys the initial bid advantage—to the tune of $82,000 in FY 2009. PCA estimates that by 2015 concrete-paved roads will enjoy a $500,000 initial bid cost advantage over asphalt—roughly a 41% savings.
“Given the supply challenges facing asphalt and the need to repair and expand the nation’s infrastructure, if all roads in 2015 were paved with concrete, state governments would save $37.5 billion in initial paving costs,” remarked Sullivan. “During the road’s life cycle, the savings resulting from paving with concrete compared to asphalt would total nearly $55 billion dollars.”
Much of the savings comes from the durability of concrete roads. A recent PCA survey of DOT specifiers concludes that concrete pavement on average lasts 29.3 years before a major rehabilitation is required. This compares to 13.6 years for asphalt pavement.
According to Sullivan, changes in refining practices and the potential of reduced import supplies occurring at the same time as an increased demand for paving materials may create shortages of asphalt in the future. This will result in the continued price escalation that has marked asphalt for much of the decade.
“The potential savings incurred by choosing concrete versus asphalt for road construction are overwhelmingly compelling, particularly at a time when states are facing tight budgets conditions,” Sullivan said. “The new realities in the road construction materials markets will force DOTs to make huge changes to how they evaluate road-paving projects.”
