Steel Markets
July 15, 2021
AGC: Rising Materials Costs Threaten to Undermine Recovery
Written by Tim Triplett
Unprecedented price increases for a wide range of goods and services used in construction pushed up contractors’ costs by a devastating 26.3% from June 2020 to June 2021, according to an analysis of government data by the Associated General Contractors of America. Association officials cautioned that rising materials prices are making it difficult for many construction firms to benefit from the re-opening of the economy, undermining the sector’s ability to add new jobs. AGC is urging the Biden administration to act, including the removal of tariffs on steel and other construction materials.
“Contractors have been pummeled in the past year by cost increases, supply shortages, and transport bottlenecks,” said Ken Simonson, the association’s chief economist. “Meanwhile, falling demand for many types of projects meant contractors could not raise bid prices enough to recoup these expenses.”
