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Construction Material Costs in March Outpace Contractors' Pricing; Industry Association Warns Against Policies that Would Add to Squeeze

April 13, 2017

Double-digit price increases for key construction materials pushed up construction costs in March, while the prices charged by contractors remained moderate, according to a new analysis of federal producer price data released today by the Associated General Contractors of America. Association officials urged policy makers to avoid adopting restrictions on international trade that would add to materials costs and potentially drive up the price of infrastructure, buildings and new homes and apartments.

“Prices have jumped in recent months for diesel fuel, steel, copper, wallboard and lumber—materials essential for houses, nonresidential buildings and infrastructure projects,” said Ken Simonson, the association’s chief economist. “Contractors generally cannot pass these costs along on projects that have broken ground, and the data show they have not been able to price new buildings at a level that reflects their rising materials, services, and labor costs.”

Read full news release here

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