Tariffs and Trade Measures Lead to Surge in Construction Costs for April
The cost of goods used in construction jumped in April at the fastest year-over-year rate since 2011, with ongoing increases for a wide range of building materials, including many that are subject to proposed tariffs that could drive prices still higher and cause scarcities, according to an analysis by the Associated General Contractors of America of Labor Department data released. Association officials said that the new data indicates many firms are already being squeezed by higher materials prices that they are unable to pass along to their customers.
"Contractors have started to boost the prices they charge, but they are falling further behind on the cost of materials they buy," said the association's chief economist, Ken Simonson. "This imbalance poses two risks—either contractors will suffer decreased profit margins or project owners with fixed budgets will cut back on the projects they undertake."