Construction material prices increased 3.5% from February to March, and 12.9% compared with March 2020. It’s the highest month-over-month and year-over-year price increase ever recorded in the 35-year history of the price tracking index, according to AGC.
“These material cost increases—steep as they are—tell only part of the story,” stated AGC Chief Economist Ken Simonson. “They are based on prices the government collected a month ago, and they fail to capture the notices contractors are receiving daily about longer lead times, shipments held to a fraction of previous orders, and other challenges.”
Some of the supply chain issues are caused by the pandemic, AGC added. AGC said it is urging the Biden administration to initiate a tariff relief plan on key building materials such as lumber and steel to help mitigate soaring prices.
Lumber prices alone have skyrocketed more than 253% since April 2020, according to Markets Insider.
The full AGC report can be found here.
