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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Construction Input Prices Rise in May, Says ABC

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Construction input prices rose 0.8% in May compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released recently. Nonresidential construction input prices rose by 0.8% for the month as well. Of the 11 subcategories, only three experienced monthly decreases, with the largest decrease in steel mill products, which fell 3.1% in May. The rise in prices was driven primarily by the three energy subcategories, which experienced significant increases over the previous month. Crude petroleum was up 41.6%, while natural gas and unprocessed energy materials were up … Read more

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Construction Input Prices Rebound in July, Says ABC

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Construction input prices expanded 0.8% in July but are down 0.6% year-over-year, according to a recently released Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices also increased 0.8% for the month but have declined 0.3% on a year-ago basis. Much of the year-over-year decline can be explained by plummeting energy prices, including crude petroleum (-20.3%), natural gas (-31%) and unprocessed energy materials (20.9%). The prices of softwood lumber (-19.5%) and iron and steel (-11.1%) are also down significantly since July 2018. “The decline in construction input prices over … Read more

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