Input Prices for Nonresidential Construction Climb 21% between March 2021, March 2022

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Prices of materials and services used in new nonresidential construction jumped more than 21% from March 2021 to March 2022, according to an analysis by the Associated General Contractors of America of government data. “Construction firms have been burdened with cost increases of 20% per year or more since early 2021,” said Ken Simonson, the association’s chief economist. “Since contractors can seldom pass along increases on projects that are underway, these extreme price hikes threaten the viability of many firms. Unfortunately, the continuing war in Ukraine is likely to keep input costs elevated for many more months, if not longer.” … Read more

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Construction Officials Renew Push for Immediate Removal of Tariffs on Key Construction Materials, Urge Congress and Administration to Take Steps to Repair ‘Every Level’ of Supply Chain

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The prices contractors pay for construction materials far outstripped the prices contractors charge in the 12 months ending in September, despite a recent decline in a few materials prices, while delivery problems intensified, according to an analysis by the Associated General Contractors of America of government data. Association officials urged Washington officials to end tariffs on key construction materials and take steps to help unknot snarled supply points. “Construction materials costs remain out of control despite a decline in some inputs last month,” said Ken Simonson, the association’s chief economist. “Meanwhile, supply bottlenecks continue to worsen.” The producer price index … Read more

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Association Reports Prices for Key Construction Materials Increase, Contractors Struggle to Deliver On-Time

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The prices contractors pay for construction materials continued to increase in August, while many firms report struggles to get those materials delivered on time, according to an analysis by the Associated General Contractors of America of government data. Association officials urged Washington officials to take steps to help address the challenges impacting the entire supply chain and driving the price escalations. “July was the seventh-straight month of double-digit price increases for construction inputs,” said Ken Simonson, the association’s chief economist. “Adding to the challenge, contractors are struggling to pass along even a fraction of these added costs onto their clients.” … Read more

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Construction Officials Caution Rising Materials Prices Threaten to Undermine Economic Recovery

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Unprecedented price increases for a wide range of goods and services used in construction pushed up contractors’ costs by a devastating 26.3% from June 2020 to June 2021, according to an analysis by the Associated General Contractors of America of government data. Association officials cautioned that rising materials prices are making it difficult for many construction firms to benefit from the re-opening of the economy, undermining the sector’s ability to add new, high-paying jobs. “Contractors have been pummeled in the past year by cost increases, supply shortages and transport bottlenecks,” said Ken Simonson, the association’s chief economist. “Meanwhile, falling demand … Read more

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Monthly Construction Input Prices Rise in September, says ABC

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Construction input prices increased 1.6% in September compared to the previous month, according to an Associated Builders and Contractors analysis of Producer Price Index data released by the U.S. Bureau of Labor Statistics. Nonresidential construction input prices rose 1.4% for the month. Among 11 subcategories, eight experienced monthly increases, with the largest increase registered in softwood lumber prices, which rose by 27.4%. The price of softwood lumber is up an astonishing 81.2% over the past year, a reflection of supply chain disruptions combined with the rapid expansion of single-family homebuilding. Natural gas prices were 12.1% higher than the previous month, … Read more

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