Ensuring Competition Between Pavement Industries Increases Public Spending Efficiency & Stimulates Innovation
When it comes to building roads, increased competition between pavement industries can lower prices and save public money. Karl Downey, Secretary General-European Concrete Paving Association (EUPAVE), recently wrote an article on EurActiv.com titled “Greater Competition Between Pavement Industries Could Save the Public Millions”. Non-discrimination, transparency and open competition are principles enshrined in the treaties of the European Union (EU) and relevant EU legislation. However, for various reasons (tradition, lack of experience, aversion to change), road authorities are often conservative when it comes to pavement type selection—restricting competition by shutting potential competitors out of the market. Today, many EU member states and local authorities stick to their traditions, despite the fact that alternative, long-lasting solutions turn out to be very competitive elsewhere.
EUPAVE is convinced that increased competition between pavement industries should be a common thread in all the recommended processes and policies to procure pavement in Europe. A new paper from the American Concrete Pavement Association (ACPA) titled “Competition Between Pavement Types: Extending the Purchasing Power of the Highway Dollar” shows the potential to save millions in public money – and the concept could easily be applied in Europe as well. Average five-year state cost data confirm that US states which use a more even balance of pavement types (asphalt and concrete) get better value for money than those that use only one pavement type. As the share of concrete in the overall paving budget increases from 0 to 35%, asphalt unit prices drop around 22% and concrete unit prices drop an incredible 45%. That means a road authority could get over one million square meters of extra concrete pavements for the same annual budget! It show an increasing share of concrete pavements in the market indicates healthy competition between industries, thus increasing public spending efficiency and stimulating innovation.
Ensuring competition between pavement industries would increase public spending efficiency, stimulate innovation, and would be a win-win for everyone – taxpayers, public authorities and industry!
For the recommendations for European market, and to read the full EurActiv article titled “Greater Competition Between Pavement Industries Could Save the Public Millions”, please click here.
For the ACPA paper “Competition Between Pavement Types: Extending the Purchasing Power of the Highway Dollar”, please click on the image below, or click here.
For the “Competition Paves” website, please click here.