Construction Materials Prices Rise 0.5 Percent in April While Bid Prices Slip, Squeezing Contractor Profits
The price of materials and services used in nonresidential construction increased 0.5 percent from March to April, while an index that measures contractors’ bid prices declined 0.3 percent, according to an analysis by the Associated General Contractors of America of government data released today. Association officials said the new data indicates contractors are getting squeezed by rising materials prices at a time when what they charge to build projects is declining.
“Prices remain volatile for many key construction materials, making it difficult for contractors to bid projects that may take years to complete,” said Ken Simonson, the association’s chief economist. “Even some materials that have dropped in price recently have still posted year-over-year increases exceeding 10 percent.”