Construction Input Costs Jump in March

Construction costs climbed in March on a wide range of building materials, according to an analysis of Labor Department data by the Associated General Contractors of America. The producer price index for input goods to the construction industry rose at its steepest year-over-year rate since 2011. The goods index climbed 0.8 percent in March alone and 5.8 percent over 12 months.  The index is a measure of all materials used in construction projects including items consumed by contractors, such as diesel fuel.

“Prices increased for many items in March, even before tariffs announced for steel, aluminum and many items imported from China have taken effect,” said the association’s chief economist, Ken Simonson. “Steel service centers and other suppliers are warning there is not enough capacity at U.S. mills or in the trucking industry to deliver orders on a timely basis. Thus, contractors are likely to experience still higher prices, as well as delivery delays, in coming months.”