Construction input prices fell 0.6% in May compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices declined 0.5% for the month.
Overall construction input prices are 3.7% lower than a year ago. Nonresidential construction input prices are 3.4% lower. Prices declined in all three energy subcategories. Crude petroleum prices were down 10.2% in May, while unprocessed energy materials were down 7.8%. Natural gas prices fell 2.0% for the month.
“The headline numbers suggest broad-based deflation in construction materials prices,” said ABC Chief Economist Anirban Basu. “But the declines in input prices are less broad than meets the eye. Much of the deflation is tied to energy, steel and softwood lumber.
“Beyond those spheres, there is plenty of input price inflation,” said Basu. “For instance, concrete prices increased 1.1% for the month and more than 12% for the year. The price of construction machinery and equipment rose marginally for the month and is up more than 9% over the past year. Prices for brick and structural clay tile as well as adhesives and sealants are also up more than 9% over the past 12 months. In short, there are still supply chain challenges, but a weakening global economy has helped place downward pressure on several traded commodities. With so many public and private megaprojects under development in the United States, it is likely that many input price categories will continue to show inflationary tendencies even if the overall economy dips into recession.”
Related Stories
| Mar 27, 2012
Groundbreaking held for Valencia College West Campus Building 10 in Orlando
Project led by design-build team of SchenkelShultz Architecture and McCree General Contractors, both of Orlando.
| Mar 26, 2012
Jones Lang LaSalle completes construction of $536M Parkview Regional Medical Center
Hospital ushers in new era of local access to advanced medical treatments in Northeast Indiana.
| Mar 26, 2012
McCarthy tops off Math and Science Building at San Diego Mesa College
Designed by Architects | Delawie Wilkes Rodrigues Barker, the new San Diego Mesa College Math and Science Building will provide new educational space for students pursuing degree and certificate programs in biology, chemistry, physical sciences and mathematics.
| Mar 22, 2012
Hawaiian architecture firm chooses FRP trellis system over traditional materials
MGA Architecture plans to add five more trellis systems on the neighboring building.
| Mar 22, 2012
Moline Public Library uses copper as an exterior building material
Architects incorporate decorative copper panels to create the look of a heavy plate copper shingle.
| Mar 20, 2012
FMI releases 2012 first quarter construction outlook
The last time construction put in place was at this level was 2000-2001.
| Mar 20, 2012
Stanford’s Knight Management Center Awarded LEED Platinum
The 360,000-sf facility underscores what is taught in many of the school’s electives such as Environmental Entrepreneurship and Environmental Science for Managers and Policy Makers, as well as in core classes covering sustainability across the functions of business.
| Mar 19, 2012
Obama’s positioned to out-regulate Bush in second term
Proposed ozone rule would cost $19 billion to $90 billion in 2020, according to the White House.
| Mar 19, 2012
Skanska promotes Saunders to VP/GM of Bayshore Concrete Products
During his more than 13 years with Bayshore, Saunders has provided products for Victory Bridge in New Jersey, Route 52 Causeway in Ocean City, N.J., and for numerous piers at Naval Station Norfolk and the Norfolk Naval Shipyard.
| Mar 16, 2012
Temporary fix to CityCenter's Harmon would cost $2 million, contractor says
By contrast, CityCenter half-owner and developer MGM Resorts International determined last year that the Harmon would collapse in a strong quake and can't be fixed in an economical way. It favors implosion at a cost of $30 million.
