April 11, 2025
(press release)
–
Association Warns New Tariffs Will Further Inflate Construction Costs, Disrupt Supply Chains, and Undermine Project Delivery, and Urges Caution
The price of materials and services used in nonresidential construction rose 0.4 percent in March, the third monthly increase in a row, according to an analysisPercentage Change in Producer Price Indexes (PPIs) and Employment Cost Indexes (ECIs) for Construction, 2019-2025 BLS Series ID Average annual percentage change in: to March 2025 since: BLS Series ID Average annual percentage change in: to March 2025 since: 2020 2021 2022 2023 2024 2/2025 3/2024 2/2020 2020 2021 2022 2023 2024 2/2025 3/2024 2/2020 Table 1: Changes in consumer, producer & construction prices Table 5: Changes in PPIs for processed goods important to construction CUUR0000SA0 Consumer price index (CPI-U) 1.2 4.7 8.0 4.1 2.9 0.2 2.4 23.6 WPU057303 #2 diesel fuel -20.6 79.8 66.0 -24.9 -15.2 -8.1 -25.2 48.8 WPUFD4 Producer price index (PPI) for final demand 0.2 7.0 9.5 2.0 2.3 -0.1 2.7 24.8 WPU1394 Paving mixtures and blocks (asphalt) -3.0 3.6 16.7 4.5 2.5 0.2 7.0 33.9 WPUFD43 Final demand construction 2.4 5.2 19.2 7.6 0.2 0.5 2.3 37.9 WPU136 Asphalt felts and coatings 1.8 10.5 16.9 3.9 2.3 -0.2 -0.3 38.2 WPUFD431 Construction for private capital investment 2.4 5.6 20.9 7.9 0.0 0.4 1.9 40.4 WPU1361 Prepared asphalt & tar roofing & siding products 2.2 11.5 17.7 3.8 3.2 -0.2 -0.6 41.6 WPUFD432 Construction for government 2.1 4.3 16.1 6.9 0.7 0.5 3.2 33.4 WPU1322 Cement 1.0 4.0 9.6 12.2 5.9 -0.1 0.9 38.2 WPU80 Construction (partial) 1.9 5.1 17.5 6.8 0.6 0.7 2.8 35.4 WPU133 Concrete products 2.7 4.9 12.7 11.0 5.1 -0.2 1.4 41.1 WPU801 New nonresidential building construction 2.5 5.2 19.9 7.9 0.1 0.4 2.1 38.9 WPU1331 Concrete block and brick 3.0 4.2 12.0 11.0 5.8 0.5 3.7 43.8 WPU801101 New warehouse building construction 1.6 7.6 28.0 4.8 -0.2 0.2 0.4 43.6 WPU1332 Concrete pipe 5.1 4.6 19.6 13.0 6.5 -1.9 7.2 64.5 WPU801102 New school building construction 2.6 3.6 16.4 7.4 0.5 0.1 2.6 32.8 WPU1333 Ready-mixed concrete 2.6 3.8 10.3 11.1 5.8 -0.4 0.5 36.4 WPU801103 New office building construction 2.4 6.1 20.7 10.0 0.6 0.1 2.2 43.9 WPU1334 Precast concrete products 2.9 8.1 13.8 8.7 3.3 0.4 2.6 42.7 WPU801104 New industrial building construction 3.0 5.2 22.3 7.6 -0.3 0.0 0.7 40.0 WPU1335 Prestressed concrete products 1.7 7.7 25.6 11.3 2.1 0.0 -1.4 52.8 WPU801105 New health care building construction 2.4 4.8 17.2 8.2 -0.5 1.7 4.2 38.1 WPU1342 Brick and structural clay tile 2.2 4.7 9.3 7.4 4.6 0.2 2.2 32.4 WPU802 Maint & repair of nonres buildings (partial) 0.4 4.8 11.0 4.0 4.2 2.7 7.8 31.3 WPU0721 Plastic construction products 1.8 22.3 23.2 -1.5 -1.0 0.0 -1.8 47.2 Table 2: Changes in PPIs for new, repair & maintenance work by subcontractors WPU1311 Flat glass 1.5 5.3 10.3 5.8 1.2 0.0 1.4 26.0 PCU23811X23811X Concrete contractors, nonresidential building work 2.1 6.8 17.6 2.0 1.5 0.1 2.4 31.9 WPU13710102 Gypsum building materials 0.1 18.1 19.9 4.0 3.0 0.0 1.0 51.9 PCU23816X23816X Roofing contractors, nonresidential building work 3.2 6.0 18.8 14.9 2.7 0.0 3.6 54.3 WPU1392 Insulation materials 1.1 11.2 16.7 5.4 5.4 0.4 4.4 48.8 PCU23821X23821X Electrical contractors, nonresidential building work 2.7 4.5 13.7 9.2 -0.4 0.2 2.8 31.7 WPUSI004011 Lumber and plywood 17.0 41.1 -0.8 -23.1 -1.7 2.7 7.1 30.8 PCU23822X23822X Plumbing contractors, nonresidential building work 1.1 3.9 13.3 8.0 1.2 2.2 2.8 31.1 WPU062101 Architectural coatings 2.6 8.3 26.8 5.1 0.3 0.0 0.3 47.4 Table 3: Changes in PPIs for inputs to construction industries, excluding capital investment, labor and imports WPU1017 Steel mill products -9.6 90.3 8.7 -16.2 -8.8 7.1 -5.6 53.9 WPUIP230000 Inputs to construction industries 1.3 18.7 14.5 -1.6 0.9 0.4 1.0 38.6 WPU101706 Steel pipe and tube -5.2 44.9 26.9 -17.2 -8.6 5.3 -3.7 36.2 WPUIP2300001 Inputs to construction industries, goods -1.3 18.8 18.4 -0.7 0.5 0.5 0.8 41.6 WPU102502 Copper and brass mill shapes 2.9 41.8 2.9 -1.6 6.7 -2.6 9.5 69.3 WPUIP23000012 Inputs to construction industries, energy -22.8 59.9 45.2 -16.3 -8.9 -4.2 -16.2 36.8 WPU102501 Aluminum mill shapes -8.6 24.9 12.8 -8.4 0.9 5.1 16.8 39.5 WPUIP23000013 Inputs to construction industries, goods less foods and e2n.2ergy 15.2 15.5 1.4 1.6 0.9 2.6 42.5 WPU1073 Sheet metal products -0.5 19.6 20.8 1.1 1.4 1.5 1.3 50.2 WPUIP2300002 Inputs to construction industries, services 4.6 18.1 8.5 -3.1 1.6 0.4 1.4 32.4 WPU107405 Fabricated structural metal -2.3 26.7 27.7 -0.5 -7.1 3.8 4.6 51.8 WPUIP231000 Inputs to new construction 1.3 18.8 14.6 -1.3 0.9 0.5 1.1 39.2 WPU1074051 Fabricated structural metal bar joists & rebar 0.2 34.2 24.7 0.5 -17.3 7.3 2.3 37.5 WPUIP231200 New nonresidential construction 0.3 18.5 15.7 -0.3 0.6 0.4 1.1 39.7 WPU10740514 Fabricated structural metal for non-industrial buildings 0.0 36.8 25.6 1.7 -23.5 8.8 1.2 29.3 WPUIP231211 Commercial structures 0.2 18.2 15.9 0.4 0.5 0.7 1.6 40.7 WPU10740553 Fabricated structural metal for bridges -7.5 28.5 25.6 -1.2 -3.9 -1.2 -1.5 45.4 WPUIP231212 Healthcare structures 0.9 17.8 15.6 0.0 0.7 0.7 1.6 40.5 WPU107408 Ornamental and architectural metal work 3.2 29.2 28.1 1.5 6.8 11.2 21.0 112.1 WPUIP231220 Industrial structures 0.5 16.6 14.6 1.4 1.1 0.6 1.3 39.2 WPU1076 Fabricated steel plate -2.5 30.4 17.4 -0.9 - - - - WPUIP231230 Other nonresidential 0.1 18.6 15.7 -0.6 0.6 0.4 1.0 39.2 WPU1079 Prefabricated metal buildings 0.9 35.1 12.5 1.4 1.7 0.9 -1.7 60.7 WPUIP231231 Highways and streets -1.6 17.2 16.1 0.3 0.5 0.2 0.9 37.2 WPU112 Construction machinery and equipment 1.7 4.9 10.6 8.8 2.9 0.0 0.7 30.4 WPUIP231232 Power and communications structures -0.6 19.1 15.7 -1.3 0.2 0.4 0.9 37.3 WPU07120105 Truck & bus (incl. off-the-highway) pneumatic tires -0.3 6.6 17.4 3.3 -3.0 -0.2 -0.4 26.1 WPUIP231233 Educational and vocational structures 1.5 18.0 14.9 -0.4 0.8 0.6 1.4 39.8 WPUIP231234 Other misc. nonresidential construction 0.1 19.4 15.0 -1.0 0.9 0.4 1.0 39.4 Table 6: Changes in PPIs for unprocessed goods important to construction WPUIP231100 New residential construction 2.4 18.3 12.6 -2.6 1.7 0.6 1.3 37.0 WPU058102 Asphalt (at refinery) -26.9 43.8 43.5 -24.9 0.0 -3.3 -3.5 22.5 WPUIP231110 Single-family 2.2 18.4 12.0 -2.9 1.7 0.6 1.4 35.9 WPU1321 Construction sand/gravel/crushed stone 4.5 4.0 10.1 9.9 7.5 0.3 8.3 46.0 WPUIP231120 Multifamily 3.3 18.7 11.6 -2.6 2.0 0.6 1.1 37.5 WPU1012 Iron and steel scrap -1.6 69.6 -6.7 -9.4 -6.9 4.8 8.6 51.7 WPUIP232000 Maintenance and repair construction 1.5 18.0 14.0 -2.1 1.1 0.4 1.1 37.1 WPU101212 Stainless and alloy steel scrap -0.4 52.2 2.3 -18.9 -0.7 -0.8 -6.9 24.0 WPUIP232200 Nonresidential maintenance and repair 0.9 18.9 14.5 -2.2 0.9 0.4 0.8 37.6 WPU102301 Copper base scrap 2.5 48.0 -1.4 -1.2 7.6 2.5 9.7 77.4 WPUIP232100 Residential maintenance and repair 2.0 17.1 12.5 -2.3 1.7 0.5 1.5 35.9 Table 7: Changes in ECIs for total compensation, wages & salaries (through Dec 2024) Table 4: Changes in PPIs for services important to construction CIU2010000000000PI rivate industry--total compensation 2.6 3.6 5.2 4.4 3.8 0.6 3.6 WPU4531 Architectural services -0.1 1.3 2.6 1.8 2.1 0.1 1.7 9.4 CIU2012300000000CI onstruction--total compensation 2.8 3.1 4.0 4.3 3.0 0.5 2.4 WPU4532 Engineering services 0.4 3.0 5.5 3.8 2.5 0.0 2.5 17.2 CIU2020000000000PI rivate industry--wages and salaries 2.9 4.0 5.3 4.6 4.0 0.7 3.7 WPU3012 Truck transportation of freight -0.6 12.5 18.5 -7.9 -1.5 0.7 3.6 23.6 CIU2022300000000CI onstruction--wages and salaries 3.2 3.3 4.4 4.8 3.1 0.6 2.4 WPU443 Const, mining & forestry mach & eq rental & leasing -2.8 -1.3 4.7 5.6 0.1 0.1 -0.4 6.8 Updated 4/11/2025 Source: BLS: www.bls.gov/cpi for CPI, www.bls.gov/ppi for PPIs; www.bls.gov/ect for ECIs. Compiled by Ken Simonson (ken.simonson@agc.org), Chief Economist, Associated General Contractors of America, www.agc.org. by the Associated General Contractors of America of government data released today. Association officials noted that the flurry of tariff-related announcements in recent weeks has been contributing to a series of announced price hikes from a range of materials suppliers.
“Lumber and metals prices shot up in March, while contractors’ inboxes are bulging with ‘Dear Valued Customer’ letters announcing further increases for many products,” said Ken Simonson, the association’s chief economist. “Rapid-fire changes in tariffs threaten to drive prices higher for many essential construction goods.”
The producer price index for inputs to new nonresidential construction—a weighted average of all materials and certain services used in new construction—rose by0.4 percent in March, following increases of 0.6 percent in February and 0.8 percent in January. That was the first time since September 2023 that input prices had risen for three consecutive months, and it followed more than a year of stable or falling prices, Simonson said.
Metals and lumber prices were the major contributors to the increase in March. The index for steel mill products soared 7.1 percent in March. Aluminum mill shapes jumped 5.1 percent in price for the month and the index for lumber and plywood rose 2.7 percent.
Prices used to calculate the indexes were collected around March 11, Simonson noted. Since then, the administration has imposed new tariffs of 25 percent on steel and aluminum imports, 25 percent on many goods from Mexico and Canada, 145 percent on imports from China, and 10 percent on most other countries. Additional tariffs on copper and lumber are under review and much higher tariffs on many countries were imposed on April 9 but then suspended for 90 days.
Association officials noted that new and planned tariffs will not only increase costs for many construction materials, but are likely to lead to higher costs for many private and public sector construction projects. They urged the Trump administration to consider delaying imposing new tariffs until there was greater market certainty about the impacts of those that have already been put in place.
“Our members are trying to deliver the best value for the public and private sector clients they serve,” said Jeffrey Shoaf, the chief executive officer of the Associated General Contractors of America. “But it is hard to deliver that best value when you have no idea how much you are going to have to pay for many of the materials required to build projects.”
* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistribute or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.