Engineering, construction costs continue to rise in early 2026

Following hikes in December, engineering and construction costs continued to increase in January, according to the Engineering and Construction Cost Indicator from PEG and S&P Global Market Intelligence.

The materials and equipment indicator showed increases in seven of the twelve tracked components compared to December 2025. The highest gains were in copper-based wire and cable, electrical equipment, and transformers. 

Redi-mix concrete, shell and tube heat exchangers, and ANSI pumps and compressors also saw moderate increases. Fabricated structural steel posted a smaller rise.

There were declines in alloy steel pipe, turbines, and both ocean freight categories (Asia to the U.S. and Europe to the U.S.), with ocean freight experiencing the largest negative movement at 21.4-points.

The sub-indicator for subcontractor labor costs increased in January to 56.4, up from 51.3 in December. Most categories remained unchanged at a neutral reading of 50.0, indicating stability across regions and disciplines.

Notable increases were observed in mechanical and I&E subcontractor costs in the U.S. South and Eastern Canada.