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
Bronze Award: Trenton Daylight/Twilight High School Trenton, N.J.
The story of the Trenton Daylight/Twilight High School is one of renewal and rebirth—both of the classic buildings that symbolize the city's past and the youth that represent its future. The $39 million, 101,000-sf urban infill project locates the high school—which serves recent dropouts and students who are at risk of dropping out—within three existing vacant buildings.
| Aug 11, 2010
New school designs don't go by the book
America needs more schools. Forty-five percent of the nation's elementary, middle, and high schools were built between 1950 and 1969, according market research firm ZweigWhite, Natick, Mass. Yet even as the stock of K-12 schools ages and declines, school enrollments continue to climb. The National Center for Education Statistics predicts that enrollment in public K-12 schools will keep rising...
| Aug 11, 2010
Bronze Award: Lincoln High School Tacoma, Wash.
Lincoln High School in Tacoma, Wash., was built in 1913 and spent nearly a century morphing into a patchwork of outdated and confusing additions. A few years ago, the Tacoma School District picked Lincoln High School, dubbed “Old Main,” to be the first high school in the district to be part of its newly launched Small Learning Communities program.
| Aug 11, 2010
Great Solutions: Technology
19. Hybrid Geothermal Technology The team at Stantec saved $800,000 in construction costs by embedding geothermal piping into the structural piles at the WestJet office complex in Calgary, Alb., rather than drilling boreholes adjacent to the building site, which is the standard approach. Regular geothermal installation would have required about 200 boreholes, each about four-inches in diameter ...
| Aug 11, 2010
Cronkite Communication School Speaks to Phoenix Redevelopment
The city of Phoenix has sprawling suburbs, but its outward expansion caused the downtown core to stagnate—a problem not uncommon to other major metropolitan areas. Reviving the city became a hotbed issue for Mayor Phil Gordon, who envisioned a vibrant downtown that offered opportunities for living, working, learning, and playing.
| Aug 11, 2010
Bronze Award: Hawthorne Elementary School, Elmhurst, Ill.
At 121 years, Hawthorne School is the oldest elementary school building in the Elmhurst, Ill., school district and a source of pride for the community. Unfortunately, decades of modifications and short-sighted planning had rendered it dysfunctional in terms of modern educational delivery. At the same time, increasing enrollment was leading to overcrowding, with the result that the library, for ...
| Aug 11, 2010
Platinum Award: Reviving Oakland's Uptown Showstopper
The story of the Fox Oakland Theater is like that of so many movie palaces of the early 20th century. Built in 1928 based on a Middle Eastern-influenced design by architect Charles Peter Weeks and engineer William Peyton Day, the 3,400-seat cinema flourished until the mid-1960s, when the trend toward smaller multiplex theaters took its toll on the Fox Oakland.
