Sources: Associated Builders & Contractors, Washington, D.C.
An Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data indicates a 1.4 percent construction input price increase in January over the prior month, bringing the metric just past the 40 percent threshold since the beginning of the decade. Over the February 2020 to January 2025 window, prices of raw materials underlying principal structural products have paced the overall construction input trajectory:
| CATEGORY | 2020-2025 PRICE INCREASE |
| Concrete Products | 41.4 percent |
| Construction Sand, Gravel, Stone | 42.3 percent |
| Brick and Structural Clay Tile | 32.0 percent |
| Gypsum Products | 48.2 percent |
| Iron and Steel | 39.9 percent |
| Structural Metal Products | 53.8 percent |
| Hot Rolled Steel Bars, Plates, Structural Shapes | 56.3 percent |
“Materials prices increased at the fastest monthly pace in two years in January,” says ABC Chief Economist Anirban Basu. “This rapid escalation is largely due to three factors. First, energy prices rose sharply. Second, producers often raise their prices at the start of the year. And third, many purchasers rushed to buy inputs before potential tariffs could go into effect, and that surge in demand pushed prices higher.”
“Of these three factors, tariffs are the only one that could continue to push input prices higher in the coming months,” he adds. “Import taxes allow domestic producers to raise their prices, and the new 25 percent levies on steel and aluminum will result in just that if they remain in place. A strong majority of contractors expect their sales to increase over the next six months, according to ABC’s Construction Confidence Index, and the combination of increased demand for construction inputs and ongoing supply chain confusion suggests input price escalation could accelerate through the first half of 2025.”