Article source: ConstructConnect
Currently, there’s no letup in the rising tide of construction material costs.
Graph 1 shows that the average year-over-year increase for two material cost indices published along with Producer Price Index (PPI) results by the Bureau of Labor Statistics (BLS) is forging ahead more than twice as speedily as bid prices (i.e., +26.6% y/y vs +12.4%).
Graph 2 showcases that 13 of 15 major construction input indices published by the BLS registered double-digit year-over-year percentage increases in December 2021. After energy-related prices (i.e., +69.5% for asphalt; +67.4% for regular unleaded gasoline; and +54.9% for diesel fuel), the largest gain was +58.9% for steel bars, plates, and structural shapes.
Aluminum mill shapes and copper wire and cable weren’t up to quite the same degree, but +29.8% y/y and +20.7% y/y are nothing to scoff at nonetheless,
