Steel Markets
November 9, 2018
AGC: Tariffs Contribute to Rising Cost of Construction
Written by Tim Triplett
The price of new nonresidential buildings accelerated in October as contractors attempted to recoup fast-rising costs for materials and labor, according to an analysis by the Associated General Contractors of America of new Labor Department data. Association officials said that trade tensions and labor shortages are contributing to higher construction prices, making it harder for public officials to improve aging and over-burdened infrastructure.
“Contractors and subcontractors raised their bid prices in November to make up for past cost increases, but the cost of goods and services that they buy rose even faster,” said the association’s chief economist, Ken Simonson. “That makes further bid-price increases likely, but also implies some contractors will just stop bidding on projects where costs are too unpredictable to ensure they can be built profitably.”
