Construction Materials Prices Flat in March but Spikes in Key Items Leave Contractors Vulnerable

Prices for construction materials were flat in March, as plunging diesel fuel and metals prices offset increases in items used in new housing and nonresidential building renovations, according to an analysis of new federal figures released today by AGC of America. Association officials noted that contractors have kept the prices they charge to build structures level, leaving their margins vulnerable to price spikes for key inputs. “Thanks to a recent, sharp drop in diesel fuel prices last month—along with continuing declines in steel, copper and aluminum prices—overall construction costs were unchanged from February and up only 0.9 percent over the past year,” said Ken Simonson, chief economist for the construction trade association. “However, building contractors had to absorb another month of increases in the cost of lumber and plywood, gypsum products, construction plastics, paint and roofing materials.” Read the full press release here. News covered by the Reno Gazette Journal, Albuquerque Business First and Equipment World.