Construction input prices saw a 3.5% increase last month, according to a new study released by the Associated Builders and Contractors.
Looking at numbers recently compiled by the U.S. Bureau of Labor Statistics’ Producer Price Index, the ABC report also notes that input prices in March were nearly 13% higher than where they were in March of 2020.
Greatly contributing to the overall price jump has been the extraordinary rise in natural gas, up by more than 178%, with crude petroleum increasing by 90% and lumber prices seeing an 83.4% hike.
“With the global economy reawakening from its slumber, demand for key inputs is expanding,” Anirban Basu, chief economist with the ABC, said in a statement.
Basu additionally noted, meanwhile, that “supply continues to be constrained by many factors, including ongoing concerns regarding worker health, trade disputes, shifting global supply chains, and political actions.”
Other price increases over the last year, according to the ABC report, include a 40% rise in steel mill products, a 19% increase in nonferrous wires and cables, and 9.4% rise in fabricated structural metal products.
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Industry analysts have suggested that while such elevated materials prices are expected to remain in place for the time being, the pace of the increase as seen in the last year may not be as rapid.
By Garry Boulard
