flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

ABC: Construction materials prices continue to expand briskly in February

Market Data

ABC: Construction materials prices continue to expand briskly in February

Compared to February 2017, prices are up 5.2%.


By ABC | March 15, 2018

Overall construction input prices rose 0.7% in February, slightly lower than the rate set in January, according to an Associated Builders and Contractors (ABC) analysis of Bureau of Labor Statistics data. Compared to February 2017, prices are up 5.2%. Nonresidential construction materials prices are also up 0.4% on a monthly basis and 4.9% compared to the same time last year.

Prices for all 11 subcategories increased year over year, and only three saw monthly declines. Crude petroleum saw the largest drop in price, falling 7.3% for the month, though it is up 16.6% on a year-over-year basis. Prices were also down for prepared asphalt, tar roofing and siding products (-4.9%) and nonferrous wire and cable (-2.6%). The largest monthly increase was in natural gas, which rose 23.5% in February. The rise in natural gas and drop in crude petroleum is a reversal of what was seen in January’s data.

 

 

“For the last several months, construction firms have become increasingly concerned about rising construction materials prices,” said ABC Chief Economist Anirban Basu. “Today’s data show those concerns are warranted. A confluence of factors will likely continue to push materials prices higher in the months to come. These factors include global monetary policy, which continues to help accelerate growth in much of the world, a strong U.S. construction market and a policymaking environment that has impacted the price of softwood lumber, steel and aluminum.

“Recently enacted tariffs are making headlines, but steel prices were already rising rapidly,” said Basu. “Based on today’s report, iron and steel prices rose 7.1% from February 2017 to February 2018. The price of steel mill products was up 4.8%, while the price of softwood lumber was up 15.6%.

“On top of materials price increases are, of course, expanding human capital shortfalls and rising compensation costs,” said Basu. “These factors have likely moderated near-term confidence among construction firms regarding profit margin growth in the midst of a healthy economy.”

 

Related Stories

Market Data | Mar 14, 2019

Construction input prices rise for first time since October

Of the 11 construction subcategories, seven experienced price declines for the month.

Market Data | Mar 6, 2019

Global hotel construction pipeline hits record high at 2018 year-end

There are a record-high 6,352 hotel projects and 1.17 million rooms currently under construction worldwide.

Market Data | Feb 28, 2019

U.S. economic growth softens in final quarter of 2018

Year-over-year GDP growth was 3.1%, while average growth for 2018 was 2.9%.

Market Data | Feb 20, 2019

Strong start to 2019 for architecture billings

“The government shutdown affected architecture firms, but doesn’t appear to have created a slowdown in the profession,” said AIA Chief Economist Kermit Baker, Hon. AIA, PhD, in the latest ABI report.

Market Data | Feb 19, 2019

ABC Construction Backlog Indicator steady in Q4 2018

CBI reached a record high of 9.9 months in the second quarter of 2018 and averaged about 9.1 months throughout all four quarters of last year.

Market Data | Feb 14, 2019

U.S. Green Building Council announces top 10 countries and regions for LEED green building

The list ranks countries and regions in terms of cumulative LEED-certified gross square meters as of December 31, 2018.

Market Data | Feb 13, 2019

Increasingly tech-enabled construction industry powers forward despite volatility

Construction industry momentum to carry through first half of 2019.

Market Data | Feb 4, 2019

U.S. Green Building Council announces annual Top 10 States for LEED Green Building in 2018

Illinois takes the top spot as USGBC defines the next generation of green building with LEED v4.1.

Market Data | Feb 4, 2019

Nonresidential construction spending dips in November

Total nonresidential spending stood at $751.5 billion on a seasonally adjusted annualized rate.

Market Data | Feb 1, 2019

The year-end U.S. hotel construction pipeline continues steady growth trend

Project counts in the early planning stage continue to rise reaching an all-time high of 1,723 projects/199,326 rooms.

boombox1
boombox2
native1

More In Category


Contractors

Nonresidential construction spending decreased 0.2% in June

National nonresidential construction spending declined 0.2% in June, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.21 trillion. Nonresidential construction has expanded 5.3% from a year ago.



Construction Costs

Data center construction costs for 2024

Gordian’s data features more than 100 building models, including computer data centers. These localized models allow architects, engineers, and other preconstruction professionals to quickly and accurately create conceptual estimates for future builds. This table shows a five-year view of costs per square foot for one-story computer data centers. 

halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021