flexiblefullpage -
billboard - default
interstitial1 - interstitial
catfish1 - bottom
Currently Reading

Construction input prices rise 2.6% in February, says ABC

Industry Research

Construction input prices rise 2.6% in February, says ABC

Construction input prices show increase in February.


By ABC | March 17, 2022
PPI
PPI Table

Construction input prices increased 2.6% in February 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 released today. Nonresidential construction input prices rose 2.5% for the month.

Construction input prices are up 24.4% from a year ago, while nonresidential construction input prices are up 25.1%. Input prices for natural gas and unprocessed energy materials increased for the month, rising 65.1% and 32.3%, respectively. Crude petroleum prices increased 13.7% in February. All three energy subcategories are up significantly on a year-over-year basis.

“It will get worse before it gets better,” said ABC Chief Economist Anirban Basu. “Not only has Russia’s assault on democratic Ukraine created supply challenges in a number of categories, including oil and natural gas, but the reemergence of COVID-19 in parts of Asia and Europe is also poised to produce additional impacts. While many still expect commodity prices to decline later this year, the wait has been meaningfully extended by geopolitical conflicts and ongoing COVID-19 lockdowns.

 

PPI Graph
Producer Price Index Percent Change

“For contractors, this has the potential to put even more downward pressure on margins,” said Basu. “It is likely that, as bid prices continue to soar, more project owners will choose to delay project starts. The current state of affairs also creates complications for public agencies considering when to start large-scale infrastructure projects. It is a challenging time to begin such projects, given the workforce shortages that remain and materials price inflation. Undoubtedly, some public administrators will decide to extend planning time, delaying project start dates.

“Remarkably, many projects to date have continued to move forward,” said Basu. “Construction backlog, as measured by ABC’s Construction Backlog Indicator, has remained stable for several months in the wake of rapidly rising materials prices. It remains to be seen whether this stability can prove resilient in the face of additional, severe supply challenges.”

Related Stories

Market Data | Oct 11, 2016

Building design revenue topped $28 billion in 2015

Growing profitability at architecture firms has led to reinvestment and expansion

Market Data | Oct 4, 2016

Nonresidential spending slips in August

Public sector spending is declining faster than the private sector.

Industry Research | Oct 3, 2016

Structure Tone survey shows cost is still a major barrier to building green

Climate change, resilience and wellness are also growing concerns.

Industry Research | Sep 28, 2016

Worldwide hotel construction shows modest year-over-year growth

Overall construction for hotel projects is up, but the current number of hotels currently being built has dipped slightly from one year ago.

Industry Research | Sep 27, 2016

Sterling Risk Sentiment Index indicates risk exposure perception remains stable in construction industry

Nearly half (45%) of those polled say election year uncertainty has a negative effect on risk perception in the construction market.

Industry Research | Sep 21, 2016

The global penetration of smart meters is expected to reach approximately 53% by the end of 2025

Large-scale smart meter deployments are underway across Western Europe, while new deployments continue among later adopters in the United States.

Industry Research | Sep 12, 2016

Evidence linking classroom design to improved learning mounts

A study finds the impact can be as much as 25% per year.

Healthcare Facilities | Sep 6, 2016

Chicago Faucets releases white paper: Reducing the risk of HAIs in healthcare facilities

The white paper discusses in detail four options used to mitigate transmission of waterborne bacteria

Market Data | Sep 2, 2016

Nonresidential spending inches lower in July while June data is upwardly revised to eight-year record

Nonresidential construction spending has been suppressed over the last year or so with the primary factor being the lack of momentum in public spending.

Industry Research | Sep 1, 2016

CannonDesign releases infographic to better help universities obtain more R&D funding

CannonDesign releases infographic to better help universities obtain more R&D funding.

boombox1 - default
boombox2 -
native1 -

More In Category




MFPRO+ Special Reports

Top 10 trends in affordable housing

Among affordable housing developers today, there’s one commonality tying projects together: uncertainty. AEC firms share their latest insights and philosophies on the future of affordable housing in BD+C's 2023 Multifamily Annual Report.

halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021