Construction materials costs across the spectrum continued to climb last month, according to a new survey, with the end result seeing contractors paying more for such items than their average bid price for a job.
“Construction materials costs remain out of control despite a decline in some inputs last month,” Ken Simonson, chief economist with the Associated General Contractors, said of his group’s survey.
Matters have only been made worse, Simonson added, by ongoing supply bottlenecks.
Overall, the producer price index for new nonresidential construction, measuring what contractors say they would charge to build nonresidential structures, was up by a healthy 5.2% between September of 2020 and September of this year.
But during that same time period, general materials costs were up by some 17%.
While the numbers were generally miserable for contractors in every conceivable materials category, one bright spot was seen with the cost of lumber and plywood, which saw a 12.3% decline since September of last year.
Lumber reached an unprecedented $1,600 per thousand feet this spring, but has since dropped to around $400.
That decline, according to analysts, is attributable to stepped-up production at the nation’s sawmills, as well as a decrease in demand among homeowners who during the early months of the covid lockdown were taking on home improvement projects.
Meanwhile, copper prices were up by 39.5%, followed by aluminum mill shapes, with a 35.1% jump.
Wallboard prices increased over the year by 23%, while insulation materials were up by 19%. An only marginally lower increase was noted in prepared asphalt and tar roofing products, with a 13.5% jump.
By Garry Boulard
