‘Runaway’ Construction Input Prices are Crushing Contractor Profit

November Producer Price Index data confirms soaring prices of energy, iron and steel, and double-digit leaps over the past 12 months for many construction necessities such as aluminum, copper and brass mill shapes and plastic products. Construction input prices increased 1.4% in November compared to the previous month, according to an Associated Builders and Contractors (ABC) analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices also increased 1.4% for the month. Construction input prices are up 23.5% from a year ago, while nonresidential construction input prices rose 24.5% over that span. All three energy subcategories increased significantly. Natural gas prices were up 150.6% compared to last year, while crude petroleum and unprocessed energy materials prices increased 115.2% and 113.6%, respectively. Prices also rose rapidly in the steel mill products (+141.6%) and iron and steel (105.1%) subcategories over the past year. READ FULL ARTICLE>>