The Flour in Our Economic Cake
Welcome to "Flour in Our Economic Cake," where we sprinkle a little fun on the serious topic of Utah's construction aggregate shortage!
Imagine building a cake without flour - that's Utah without enough sand, gravel, and stone.
Our state's growth, from skyscrapers to our cozy homes, depends on these unsung heroes of the construction world. But, our "flour" is running low, and it's time to mix things up!
Join us as we dig into innovative solutions, from recycling rubble to exploring new quarries, ensuring our economic cake rises to new heights. Let's embark on this rocky road together, securing a sustainable future for Utah's economy, one pebble at a time!
A ‘Hidden Tax’ On New Homes
Governor Cox's plan to build 35,000 starter homes in Utah faces a critical challenge: rising costs of aggregates, essential for construction.
An estimated 294 tons of aggregates, current prices are manageable. However, if constraints double aggregate prices, each home would see a $7,600 increase in costs. This totals nearly $250 million in total increased costs.
This surge effectively acts as a 'hidden tax' on new homes, underscoring the urgency to keep aggregates accessible and affordable for sustainable housing development.
Our Population Is Growing, And Our Supply Is Not
As Utah's population surges, our supply of critical construction materials isn't keeping pace, leading to a steep climb in construction costs per capita. This imbalance not only strains our economy but also puts essential infrastructure and housing development at risk. Without immediate action to address the supply shortfall, building anything in our state will become increasingly expensive, impacting affordability and economic growth. This situation demands urgent, strategic interventions to boost our aggregate supply, ensuring the sustainability of our development and the well-being of our communities.
Transportation Projects At Risk
Foundation of Transportation Projects: Aggregates play a pivotal role in Utah's transportation infrastructure, crucial for highways, roads, transit systems, and bridges.
Original Budget and Cost Doubling: Utah's Unified Transportation Plan initially allocated $116.9 billion for construction. If aggregate costs double, this could potentially swell the budget by $100 billion.
Economic Implications of Increased Costs: Such a drastic increase in costs presents a tough choice: significant tax increases, prioritizing projects, or reducing the number of projects. Each of these options carries substantial economic consequence