Contractors are receiving price hike notices on several key inputs, complicating efforts to plan and budget new projects
Dive Brief:
- Construction input prices increased 0.5%
in March, while nonresidential input prices climbed 0.6%, both
unusually steep jumps, according to an analysis by Associated Builders
and Contractors of U.S. Bureau of Labor Statistics data.
- Both overall and nonresidential
input prices are now 0.8% higher than a year ago and sit more than 40%
higher compared to February 2020, largely due to a sharp rise in natural
gas, steel, copper and lumber prices.
- The price escalations across the board reflect early impacts from tariffs and mark the third straight month of price jumps, said Anirban Basu, ABC chief economist.
“Construction input prices increased at a rapid pace for the third consecutive month in March and have now risen at a 9.7% annualized rate through the first quarter of 2025,” said Basu. “The emerging effects of tariffs are glaring in the March data release.”
Pressure is mounting for owners and builders heading into the second quarter, especially as tariff-related uncertainty clouds purchasing and pricing decisions, according to the Associated General Contractors of America...
...morePressure is mounting for owners and builders heading into the second quarter, especially as tariff-related uncertainty clouds purchasing and pricing decisions, according to the Associated General Contractors of America...
RSK: This will no doubt delay many a project and the ones that are completed will need to charge higher than average rents to make them financially feasible.
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- - Volume: 25 - WEEK: 16 Date: 4/15/2025 1:19:18 PM -