Prices Surge for Construction Materials with No Signs of Dropping

Prices for numerous construction materials are still rising in conjunction with the response from governments and manufacturers to the war in Ukraine. Stainless steel, aluminum coil, aluminum accessories, PVC and other materials are seeing rising prices and extended lead times due to lack of inventory. Both the Associated General Contractors of America and Associated Builders and Contractors reported double-digit price increases across multiple categories of the latest nonresidential producer price index. ABC said last week construction input prices are up 24.4% from a year ago, while nonresidential construction input prices are up 25.1%. AGC analysis of government data shows prices of construction materials used in new nonresidential construction jumped more than 21% from February 2021 to February 2022. The association noted that more recent price announcements after the February data were collected suggest contractors are experiencing even worse cost pressures this spring. “Even though the February numbers represent some of the highest year-over-year price increases ever recorded, they have already been surpassed by even steeper price hikes since the war in Ukraine broke out,” said Ken Simonson, AGC’s chief economist. “Since the time these prices were collected, multiple increases have taken effect for metals, fuel and trucking, while supply chains have become even more snarled.” READ FULL ARTICLE>>