Engineering and construction costs continued to rise in March 2026

Engineering and construction costs continued to rise in March, according to the Engineering and Construction Cost Indicator from PEG and S&P Global Market Intelligence.

The Engineering and Construction Cost Indicator, a leading measure of wage and material inflation for the engineering, procurement, and construction sector, increased to 69.2 in March, from 62.6 in February. Materials and equipment led the cost increases.

The sub-indicator for materials and equipment costs increased by 11.7 points to 73.9. Increases were reported in all 12 tracked components compared to February.

The most significant gains were observed in turbines, as well as in ANSI pumps and compressors. These components scored above 70.0, with copper-based wire posting the highest score. 

Alloy steel pipe and copper-based wire experienced smaller increases, but copper saw the highest reading of all categories. Ocean freight had a notable increase of above 10.0 points, signaling complications related to logistics in the current geopolitical climate.

There was some relief in the overall cost picture as the sub-indicator for subcontractor labor costs decreased by 5.2 points to 63.5.