{"id":33447,"date":"2025-12-01T10:31:17","date_gmt":"2025-12-01T18:31:17","guid":{"rendered":"https:\/\/essential.construction\/news\/construction-costs-climb-for-5th-straight-month\/"},"modified":"2025-12-01T10:31:17","modified_gmt":"2025-12-01T18:31:17","slug":"construction-costs-climb-for-5th-straight-month","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/construction-costs-climb-for-5th-straight-month\/","title":{"rendered":"Construction costs climb for 5th straight month"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">3 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/806493\/2025-12-01_12.34.01\/construction-costs-PPI-climb-5th-straight-month.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<h3>Dive Brief:<\/h3>\n<ul>\n<li><a rel=\"nofollow noopener\" href=\"https:\/\/www.abc.org\/News-Media\/News-Releases\/abc-construction-materials-prices-continue-to-rise-up-35-since-last-september\" target=\"_blank\"><span><span><span><span><span><span><span>Construction input prices ticked up 0.2%<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in September, driven largely by key materials such as iron and steel, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics\u2019 Producer Price Index data.<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>Input costs sit 3.5% higher than a year ago for overall construction and 3.8% higher for nonresidential work, according to ABC.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<li><span><span><span><span><span><span>\u201cConstruction input prices rose for the fifth straight month in September,\u201d said Anirban Basu, ABC chief economist, in the release. \u201cWhile that represents the longest streak of monthly increases since the first half of 2022, those increases are relatively modest. Materials prices have risen at a 3.2% annualized rate since April, a rate that is faster than ideal but nowhere near the escalation that occurred in 2021 and 2022.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/li>\n<\/ul>\n<h3>Dive Insight:<\/h3>\n<p><span><span><span><span><span><span>The latest PPI data, which was pushed back due to the government shutdown, still shows <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/rising-materials-costs-test-construction-producer-price-index\/759940\/\" target=\"_blank\"><span><span><span><span><span><span><span>cost pressures across major construction inputs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, according to the Associated General Contractors of America.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>That pattern is keeping <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.agc.org\/news\/2025\/11\/25\/construction-input-costs-rise-again-september-metals-diesel-and-concrete-products-drive-year-over\" target=\"_blank\"><span><span><span><span><span><span><span>procurement unpredictable for contractors<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> across the board, said Macrina Wilkins, senior research analyst at AGC.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cPersistent input-price pressure, even when the increases are modest, creates a stop and go rhythm in procurement and production instead of a steady flow contractors and suppliers need,\u201d said Wilkins in the release. \u201cThese month-to-month swings make it harder for firms to plan confidently and protect already thin-margins.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Several key materials posted significant year-over-year gains, according to the data. For example, steel mill products jumped 12.4% over the past 12 months, while switchgear, switchboard and industrial controls equipment increased 10.3% year-over-year, according to ABC. Copper wire and cable prices also jumped 9.1% over the past year.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><img decoding=\"async\" alt=\"-\" src=\"https:\/\/www.abc.org\/Portals\/1\/CEU\/PPI_Table_11.25.25.jpg?ver=UdTF98dM_0bL5kVfjSMMKQ%3d%3d\"><\/p>\n<p><span><span><span><span><span><span>\u201cUnfortunately, it\u2019s unclear how higher tariffs on key materials like iron and steel and aluminum and copper will affect prices over the next several months, and it\u2019s noteworthy that commodities related to those materials have exhibited significant year-over-year price increases,\u201d said Basu. \u201cDespite the prospect of ongoing materials price escalation, contractors remain cautiously upbeat about their <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/contractor-backlog-strength-data-center-manufacturing\/805489\/\" target=\"_blank\"><span><span><span><span><span><span><span>profit margins and sales<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> over the next six months.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>On that positive note, energy categories were one of the few areas to offer relief in September, according to the data. Natural gas and unprocessed energy materials prices ticked down 8.7% and 3%, respectively, and crude petroleum prices dropped 1.7%.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>But contractors remain caught between higher materials costs and softer bid prices, according to the AGC report. That mismatch adds pressure at a moment when several <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/federal-shutdown-project-stress-index-constructconnect\/806352\/\" target=\"_blank\"><span><span><span><span><span><span><span>commercial construction segments show weakness<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cContractors can manage modest cost increases, but they need a predictable environment to keep projects moving,\u201d said AGC CEO Jeffrey Shoaf. \u201cGreater clarity on tariff policy and progress on outstanding trade issues would help stabilize materials markets and give firms more confidence to plan for the work ahead.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/construction-costs-PPI-climb-5th-straight-month\/806493\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 3 min This audio is auto-generated. Please let us know if you have feedback. Dive &#8230; <a title=\"Construction costs climb for 5th straight month\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/construction-costs-climb-for-5th-straight-month\/\" aria-label=\"Read more about Construction costs climb for 5th straight month\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-33447","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/33447","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=33447"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/33447\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=33447"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=33447"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=33447"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}