Construction input prices registered a significant increase last month, with a 23% jump from where they were in the summer of 2020.
According to a new study released by the Associated Builders and Contractors, almost everything a construction company needs to purchase to build a given project has seen an increase in the last year.
Natural gas saw the greatest price jump: a 146% increase over July of last year, with unprocessed energy materials and crude petroleum not far behind, posting a 93% and 102% increase respectively.
Steel mill products also saw a big increase: up by 108% from July of last year to July 2021.
In a statement, Anirban Basu, chief economist with ABC, said a “rebounding economy, ongoing supply chain disruptions, and limited productive capacity have conspired to generate rapid price increases.”
Basu added that the current input price increases “can meaningfully affect contractor fortunes by trimming margins and delaying the onset of projects.”
Continued Basu: “One can only conclude that the economy will continue to run hot into 2022, despite the malign impacts of the delta variant, producing both hefty advances in gross domestic product and unusually elevated inflation.”
Among the other materials seeing substantial price increases over last July: fabricated structural metal products, up by nearly 29%; nonferrous wire and cable, posting a 31% price gain; and prepared asphalt, tar roofing, and sliding projects, up by just under 11%.
The smallest price increases were registered in plumbing fixtures and fittings segment, up by 3.5%; and concrete products, with a 4.5% jump over last July.
By Garry Boulard
