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Producer Prices For Construction Materials And Services Jump 24 Percent Over 12 Months, Threatening Contractors’ Solvency And Workers’ Jobs

June 15, 2021

Construction Association Calls on President to Immediately End Tariffs and Quotas on Steel, Aluminum, and Lumber as First Step to Easing Pressure on Construction Costs and Supply-Chain Bottlenecks

The cost of goods and services used in construction climbed by a record-setting 4.3 percent in May and 24.3 percent over the past 12 months, jeopardizing contractors’ solvency and construction workers’ employment, according to an analysis by AGC of government data released today. Association officials urged the Biden administration to move more quickly to end tariffs and quotas that are adding to construction materials costs and availability problems.

“The increase in producer prices for construction materials over the past year far outstrips contractors’ ability to charge more for projects,” said Ken Simonson, the association’s chief economist. “That gap means contractors are being hit with huge costs that they did not anticipate and cannot pass on.”

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