Construction input prices increased 1.9% in June compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data released today. Nonresidential construction input prices increased 1.8% for the month.
Construction input prices are up 20.1% from a year ago, while nonresidential construction input prices are 20.3% higher. On a monthly basis, input prices were down in four of 11 subcategories in June, with the largest decline registered in the softwood lumber category (-24.8%). All three energy subcategories experienced price increases, with natural gas prices rising 24.3% for the month.
“It’s no secret that contractors and their customers have been walloped by massive increases in construction materials prices,” said ABC Chief Economist Anirban Basu. “That inflation continued through June, as reflected in the decline in profit margin expectations seen in the most recent reading of ABC’s Construction Confidence Index. But more recently, key commodity prices have declined, so it may be possible we have achieved peak inflation.
“Indeed, with much of the world at risk of recession, there is likely to be further downward pressure on commodity prices going forward,” said Basu. “Oil prices had been in the range of $120/barrel recently. As of this morning, the price of oil has dipped into the low $90s. Similarly, natural gas prices have been in decline. In part, this may be because global supply chains are readjusting to disruptions caused by the Russia-Ukraine war. The war creates an ongoing risk of sudden spikes in certain commodity prices, but we appear to be entering a new phase in input price trajectory.”
Related Stories
| Aug 11, 2010
Harvard Public Library
Harvard, Mass.
Five years ago, the town of Harvard, Mass., which lies about 30 miles west of Boston, faced two problems. First, its iconic public schoolhouse, known as Old Bromfield, which was built in 1877, had become outdated. So, too, had its public library, which had no room to grow on its site.
| Aug 11, 2010
Green consultant guarantees LEED certification or your money back
With cities mandating LEED (Leadership in Energy and Environmental Design) certification for public, and even private, buildings in growing numbers, an Atlanta-based sustainability consulting firm is hoping to ease anxieties over meeting those goals with the industry’s first Green Guaranteed.
| Aug 11, 2010
Skanska, Turner most active in U.S. hotel construction, according to BD+C's Giants 300 report
A ranking of the Top 50 Hotel Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit http://www.BDCnetwork.com/Giants
| Aug 11, 2010
An American perspective: skyscraper architecture goes modular in the UK
At 25 stories, Victoria Hall, a new modular high-rise in the city of Wolverhampton, England, is the world’s tallest building constructed principally off-site. The ground floor is site-built, but the other 24 stories are assembled from 383 individual modules shipped over from Cork, Ireland. The mixed-used complex, designed by O’Connell East Architects of Manchester and developed by Victoria Hall Ltd., will house students at the University of Wolverhampton.
| Aug 11, 2010
Architecture Billings Index bounces back after substantial dip
Exhibiting a welcome rebound following a 5-point dip the month prior, the Architecture Billings Index (ABI) was up almost 6 points in July. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the July ABI rating was 43.1, up noticeably from 37.7 the previous month.
| Aug 11, 2010
Gilbane, Whiting-Turner among nation's largest university contractors, according to BD+C's Giants 300 report
A ranking of the Top 50 University Contractors based on Building Design+Construction's 2009 Giants 300 survey. For more Giants 300 rankings, visit /giants
| Aug 11, 2010
70% of Qualified Trade Association Members Attain “Green Brick Specialist” Designation in Comprehensive Training Program
The Brick Industry Association (BIA), the national trade group representing distributors and manufacturers of clay brick and suppliers of related products and services, has announced that 70% of its eligible members have passed the industry’s first-ever online training program, “Sustainability/Green Building Design and Brick.”
| Aug 11, 2010
Rafael Vinoly-designed East Wing opens at Cleveland Museum of Art
Rafael Vinoly Architects has designed the new East Wing at the Cleveland Museum of Art (CMA), Ohio, which opened to the public on June 27, 2009. Its completion marks the opening of the first of three planned wings.
| Aug 11, 2010
Suffolk breaks ground on colorful charter school in Boston
Suffolk Education has broken ground and began renovations and construction of a new $39.6 million facility to house the Boston Renaissance Charter Public School. The Suffolk team is renovating an existing, three-story mill building and warehouse in the Hyde Park section of Boston, Massachusetts, and constructing a 20,000 square-foot addition.
