Construction InflationConstruction Inflation
Wisconsin is not immune from worldwide demand for construction material.† As Asian and South American countries ramp up building projects to support their rapidly growing economies, Wisconsinís transportation market feels the pinch.† These prices for construction materials often rise at a rate much faster than consumer or producer prices indices, which serve as the benchmark for many discussions of funding increases.†
The Wisconsin Construction Cost Index measures the price of materials used for highway and bridge projects in the state.† The Wisconsin Department of Transportation monitors unit prices in monthly bid lettings for a range of quantities.† This reflects the actual cost of building projects in Wisconsin.†
The chart below shows the Wisconsin Construction Cost Index for the past five years:
The average annual increase in the index over the past 10 years has been 4.9%.