According to an Associated General Contractors of America report, the price of materials and services for non-residential construction increased from June to July by 0.2 percent.
Additionally, a government index that measures contractors’ bid prices decreased by 1.4 percent.
The information was taken from a recent analysis done by the Associated General Contractors of America. The Association noted that contractors are seeing fewer supply chain issues and less price increases, but the competitive market causes needed items to be difficult to obtain.
Though the damage done by the pandemic and Russia’s attack on Ukraine have faded, electrical equipment and construction machinery are surging in price. Cement, lumber, plywood, and asphalt coatings are some of the materials showing constant price increases.
The report also noted the producer price index for new nonresidential construction, a measurement of what contractors said they would charge to erect certain types of buildings, dropped by 1.4 percent in July. There was no change in the month before and a small decrease in May.
Most major construction inputs had a consistent level or dropped in July. The more substantial declines included diesel fuel, which dropped 8.4 percent, steel mill products fell 7.6 percent and fabricated structural metal, was down 6.4 percent.
Association officials claim that Buy America requirements that make up Infrastructure Law will limit the amount of supplies contractors can use and will experience a surge in price. The new requirements are strict and will not allow U.S. made products to be outsourced to other nations.
“Federal officials continue to inhibit the ability of contractors to utilize an established diversified construction material supply chain by drumming up strict regulations,” said AGC CEO Stephen E. Sandherr. “Infrastructure is needed now, and until we have the capability of keeping all manufacturing on U.S. soil, we need to take advantage of all resources available.”