Material price rises could be ‘a real headwind’ to construction activity

Neil Gerrard Senior Editor, Construction Briefing

19 March 2026

Professional installation work on a construction building site. Assemblers perform high-altitude installation works on the telescopic boom lifts platforms. Image: Sodel Vladyslav via AdobeStock - stock.adobe.com

Construction input prices in the US increased by 1.3% in February, as the cost of key resources like oil, copper, lumber and steel increased even before the impact of the Middle East conflict.

That’s according to Associated Builders and Contractors’ (ABC) latest analysis of Bureau of Labor Statistics Producer Price Index data.

Overall construction input prices were 3.1% higher than a year ago in February, with non-residential input prices 3.7% higher.

All three energy categories increased, with natural gas and unprocessed energy materials…

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