Dive brief:
- Construction input prices decreased by 0.9% in September due to declines in two of the three energy subcategories, according to an analysis by Builders and Contractors Association.
- The decline reflects the overall stabilizing trend in material prices over the past 12 months. According to the report, construction input prices are 1.9% lower than a year ago, while non-residential construction input prices fell 2.1% over the period.
- “The decline in construction input costs seen in September was almost entirely due to a large decline in oil prices,” said Anirban Basu, ABC’s chief economist. However, some materials saw notable price increases during the month, including gypsum, fabricated metal structural products, asphalt and lumber.
Diving knowledge:
Materials prices remained relatively stable in September, Macrina Wilkins, senior research analyst at Associated General Contractors of America, said in an email to Construction Dive.
However, Wilkins noted that over the past year, there has been significant variation in specific materials, particularly with diesel, fabricated structural metal, steel products, insulation and factory shapes. copper and brass.
Meanwhile, high global container shipping rates and emerging supply chain issues could put upward pressure on material prices in the coming months, Basu said.
This is a cause for concern for contractors, many of whom are still waiting for theirs profit margins to hire over the next six months, according to ABC. Overall, non-residential construction submissions remain 39% higher than in February 2020, before the COVID-19 pandemic.
Courtesy of Associated Builders and Contractors
Prices fell in two of the three energy subcategories in September, according to ABC. Crude oil prices fell 16.7%, while unprocessed energy materials fell 12.6%. Natural gas prices, on the other hand, rose by 2.4% in September.
