A measure of construction contractors’ bid prices moved sharply higher in October as firms coped with ongoing supply chain challenges and a tight labor market, according to an analysis by the Associated General Contractors of America of government data released Nov. 15. Association officials said rising construction costs threaten to undermine demand for projects and urged administration officials to remove remaining tariffs on construction materials and to boost investments in construction-focused education and training.

The price of materials and services used in nonresidential construction declined by 1.1 percent from July to August as a steep drop in fuel prices masked increases in the cost of other construction inputs, according to an analysis by the Associated General Contractors of America of government data released on Sept. 14. Association officials cautioned that limited price declines cannot undo the harm of clogged supply lines and labor shortages.

The price of materials and services used in nonresidential construction fell 1.3% last month, while contractors’ bid prices rose 5.4%, according to an analysis by the Associated General Contractors of America of government data released today. Association officials noted that, despite the monthly decline, materials prices remain high and the availability of certain key materials is erratic.

Wall and ceiling professionals today face numerous challenges: a global pandemic, the affects it has had on the global supply chain, and how they respond to customers, prospects and the public using the latest communications tools.

Builders are looking for alternative products and construction methods to reduce their reliance on wood and help mitigate material costs and supply-chain disruptions for wood-framed homes and other construction.

Construction starts are once again increasing after a slowdown in the fourth quarter of 2021. But labor shortages continue, and after a brief decline, materials prices are again climbing, caused partially by the war in Ukraine. 

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.