Rising cost of materials test construction’s breaking point
The cost of materials such as iron, aluminum and steel is rising, increasing overall construction input prices by 0.2% in August. Analysis by the Associated Builders and Contractors shows materials hit especially hard by tariffs are driving up prices. The U.S. Bureau of Labor Statistics’ data from the Producer Price Index demonstrates how much more costly construction projects have become thanks to price hikes.
Construction input prices have grown 2.3% over the past year, and 43% since February of 2020, before the pandemic halted all projects. Prices are not as high as they could be, however, as lower demand and higher domestic production help level out prices. Trade negotiations by the current administration could settle tariff disputes and ease the burden on contractors going into next year. The cost of materials increasing should not deter contractors, however, as input increase is stable.
