NEW ORLEANS —
Economic uncertainty, driven by tariffs and inflation, is affecting road projects in Southeast Louisiana, with costs rising and timelines possibly being delayed.
Neil Schneider, the director of capital projects with Jefferson Parish, expressed cautious optimism about future projects.
The widening of Causeway Boulevard to six lanes between West Napoleon and Airline is one such project affected, with current estimates exceeding $20 million, up from $15 million in 2017.
Andre Kelly, vice president and director of workforce development for the Louisiana Associated General Contractors, said the rising price of supplies, such as steel and pipe, as a major factor in increased costs.
“The biggest thing is the conversation with the suppliers,” Kelly said, noting that negotiated prices are only available for a short time.
Contractors are adding contingencies to their bids, acknowledging that today’s price may not be tomorrow’s price.
Kelly also mentioned that manufacturers supplying contractors can only secure prices for 48 hours, which impacts both costs and timelines.
“Especially locally in the city of New Orleans, I think we are possibly going to see a slower output of the projects,” Kelly said, adding that the timeline for the city’s $2.3 billion joint infrastructure recovery request program may extend.
Scott Boyle, from the Louisiana Department of Transportation and Development, said that major projects, such as potential interstate widening, could take years from identification to execution, with funding being a key factor.
“Those are things that we’re looking at and preliminarily discussing,” Boyle said,
As work continues in Jefferson Parish, Schneider said the long-term financial impact of tariffs and inflation on road projects won’t be clear until projects are out for bid.
“I would say three to five years when we would start to see those impacts,” Schneider said.
Read more: HERE
