Association officials said that in addition to the cost squeeze, the construction industry was suffering from decreasing demand for public sector construction activity. They said that while state and local construction budgets will continue to contract for the foreseeable future, Washington could help offset some of the decline by enacting legislation to make needed, long-term investments in highways, transit systems, clean water systems, airports and runways.

“Given the stagnant construction bid prices, taxpayers stand to benefit if Washington acts quickly to enact new infrastructure investments,” said AGC CEO Stephen E. Sandherr. “Even if construction prices rebound in the near future, it is still a lot less expensive to maintain infrastructure while it is operating than to fix it once it breaks.”