What's Hot

    Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

    August 1, 2025

    State’s Largest Data Center Project Part of Vermaland Pinal Plan

    August 1, 2025

    Pinal Considering 215-Acre Data Center Development

    August 1, 2025
    Facebook Twitter Instagram
    AZBEX
    NEWS TICKER
    • [August 1, 2025] - Eloy P&Z Hears Dual Requests for Major Land Use Overhaul
    • [August 1, 2025] - State’s Largest Data Center Project Part of Vermaland Pinal Plan
    • [August 1, 2025] - Pinal Considering 215-Acre Data Center Development
    • [August 1, 2025] - Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction
    • [August 1, 2025] - Arizona Projects 08-01-25
    • [July 29, 2025] - Scottsdale Hospitals War May Heat Up with New Banner Request
    • [July 29, 2025] - Dominium Planning 304-Unit BTR in Surprise
    • [July 29, 2025] - Next Steps Coming for Bartlett Dam Expansion
    Facebook Twitter YouTube LinkedIn
    • Home
    • News
      1. View Latest
      2. Planning & Development
      3. Local News
      4. Classifieds
      5. Editorial Analysis
      6. Budgets & Funding
      7. Commercial Real Estate
      8. People on the Move
      9. Arizona Projects
      10. Legislation & Regulations
      11. Trends

      Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

      August 1, 2025

      State’s Largest Data Center Project Part of Vermaland Pinal Plan

      August 1, 2025

      Pinal Considering 215-Acre Data Center Development

      August 1, 2025

      Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction

      August 1, 2025

      Mohave County May Remove Data Centers as Economic Development Goal

      July 23, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      Scottsdale Report Shows Multifamily Pipeline Half of Common Estimate

      July 22, 2025

      Alleging Breaches, ZenniHome Closes NGS Operations

      July 21, 2025

      Scottsdale Hospitals War May Heat Up with New Banner Request

      July 29, 2025

      Glendale Voters to Determine VAI Resort’s Fate

      May 16, 2025

      Legislation Would Effectively Strip NIMBYs of Referendum Tool

      February 11, 2025

      2025 Forecast Tries to Clarify an Uncertain Market

      February 7, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      State Government Shutdown Averted as Hobbs Signs Budget

      July 1, 2025

      Arterial Life Cycle Program Covers 20 Years of Street Development

      June 27, 2025

      $56M+ MAG Program will Enable $90M in Arterial Street Widening Projects

      June 24, 2025

      Commercial Real Estate 07-29-25

      July 29, 2025

      Commercial Real Estate 07-22-25

      July 22, 2025

      Commercial Real Estate 07-15-25

      July 15, 2025

      Commercial Real Estate 07-08-25

      July 8, 2025

      Industry Professionals 07-29-25

      July 29, 2025

      Industry Professionals 07-22-25

      July 22, 2025

      Industry Professionals 07-15-25

      July 15, 2025

      Industry Professionals 07-08-25

      July 8, 2025

      Arizona Projects 08-01-25

      August 1, 2025

      Arizona Projects 07-25-25

      July 25, 2025

      Arizona Projects 07-18-25

      July 18, 2025

      Arizona Projects 07-11-25

      July 11, 2025

      Mohave County May Remove Data Centers as Economic Development Goal

      July 23, 2025

      Alleging Breaches, ZenniHome Closes NGS Operations

      July 21, 2025

      Ariz. LIHTC to Sunset Under New Budget

      July 8, 2025

      Tax Bill Would Make LIHTC Permanent

      July 2, 2025

      Ariz. Construction Gained 600 Jobs in June

      July 22, 2025

      BEX Updates Construction Sector Projections in Annual Mid-Year Update

      July 18, 2025

      Phoenix Industrial Sees First Vacancy Drop in Years; YoY Completions Drop 75%

      July 18, 2025

      Phoenix Construction Costs See 4.42% Q2 Annual Change

      July 15, 2025

      Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

      August 1, 2025

      State’s Largest Data Center Project Part of Vermaland Pinal Plan

      August 1, 2025

      Pinal Considering 215-Acre Data Center Development

      August 1, 2025

      Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction

      August 1, 2025
    • AZBEX
      • Subscribe
      • Classifieds
      • Advertising
    • DATABEX
      • Webinars
      • Monthly Snapshot
    • Events
      • 2025 Mid-Year Update
      • 2025 Industrial LMS
    • About Us
      • Meet the Company
      • Meet the Sales Team
      • Meet the Editorial Team
      • Meet the BEXperts
    • CIP Special Report
    AZBEX
    Home » Trends » Construction Input Prices Up 23.1% Year-Over-Year
    Trends

    Construction Input Prices Up 23.1% Year-Over-Year

    BEX StaffBy BEX StaffAugust 17, 2021No Comments2 Mins Read
    Credit: Associated Builders and Contractors
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By Associated Builders and Contractors 

    Construction input prices rose 0.6 percent in July, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices increased 0.8 percent for the month. 

    Construction input prices are 23.1 percent higher than a year ago, while nonresidential construction input prices increased 23.4 percent over that span. Energy prices continue to experience substantial year-over-year price increases. The price of natural gas is up 146.7 percent, while crude petroleum and unprocessed energy materials prices are up 102.9 percent and 93.8 percent, respectively. Prices for steel mill products increased 10.8 percent for the month and are up 108.6 percent for the year. 

    “One’s definition of transitory needs to evolve with these data,” said ABC Chief Economist Anirban Basu. “While it is quite likely that there will be less inflation a year from now, a rebounding economy, ongoing supply chain disruptions and limited productive capacity have conspired to generate rapid price increases. Many economists insist that the current situation is merely temporary; still, today’s input price increases can meaningfully affect contractor fortunes by trimming margins and delaying the onset of projects.” 

    “The good and bad news is that the economy is flush with liquidity,” said Basu. “Injections of money supply by the Federal Reserve, which has yet to indicate when it will begin to moderate its quantitative easing program, have helped create large pools of investable money. A significant fraction of that money is being invested in real estate, which often translates into construction projects. That is consistent with the stable-to-rising backlog observed in recent months as well as ongoing confidence among contractors, reflected in ABC’s Construction Backlog Indicator and Construction Confidence Index. However, that liquidity also serves to help push prices higher.” 

    “One can only conclude that the economy will continue to run hot into 2022 despite the malign impacts of the delta variant, producing both hefty advances in gross domestic product and unusually elevated inflation,” said Basu. “The fact that steel prices are rising is not only an indication of the recovery transpiring in goods-producing industries like construction and manufacturing, but also of the difficulty global suppliers are having keeping up with demand. That dynamic does not appear poised to change substantially in the very near-term, though there was some evidence of moderating inflation in the most recent Consumer Price Index report. Contractors should assiduously build contingencies into their contracts to protect themselves from additional materials price spikes. Given that construction firm services are in high demand, contractors should have enough negotiating leverage to accomplish that under most circumstances.” (Source) 

    ABC Anirban Basu Associated Builders and Contractors Bureau of Labor Statistics Construction Backlog Indicator Construction Confidence Index construction input prices Consumer Price Index economic impacts economic indicator energy federal reserve inflation lumber materials prices Natural Gas nonresidential construction petroleum Private Producer Price Index residential construction steel mill products unprocessed energy materials
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Tumblr Email

    Related Posts

    Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

    August 1, 2025

    State’s Largest Data Center Project Part of Vermaland Pinal Plan

    August 1, 2025

    Pinal Considering 215-Acre Data Center Development

    August 1, 2025

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    Our Picks

    Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

    August 1, 2025

    State’s Largest Data Center Project Part of Vermaland Pinal Plan

    August 1, 2025

    Pinal Considering 215-Acre Data Center Development

    August 1, 2025

    Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction

    August 1, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • LinkedIn
    • YouTube
    Don't Miss
    Planning & Development

    Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

    August 1, 20250

    By Roland Murphy for AZBEX In its July 16 meeting, the Eloy Planning and Zoning…

    State’s Largest Data Center Project Part of Vermaland Pinal Plan

    August 1, 2025

    Pinal Considering 215-Acre Data Center Development

    August 1, 2025

    Hundred-Unit Skyline Towns Townhome Development Moves Forward in Apache Junction

    August 1, 2025

    BEX serves architecture, engineering and construction firms as well as all the ancillary product and service categories that market to them. These include manufacturing representatives, public agencies and private real estate organizations, specialty subcontractors and services providers related to our industry.

    Our Picks

    Eloy P&Z Hears Dual Requests for Major Land Use Overhaul

    August 1, 2025

    State’s Largest Data Center Project Part of Vermaland Pinal Plan

    August 1, 2025

    Pinal Considering 215-Acre Data Center Development

    August 1, 2025
    Contact Us

    Phone: 480-709-4190
    Address: P.O. Box 12196 Tempe, AZ 85284
    Email: sales@azbex.com

    Type above and press Enter to search. Press Esc to cancel.