US construction input costs rise 11.9% in a year

The AGC found that construction companies have suffered a “double whammy” of increased fuel and materials costs.

Association officials said construction firms appear to be absorbing most of the cost increases amid relatively soft demand for construction projects except data centres.

The largest increases affected petroleum products. The producer price index for diesel fuel more than doubled over the past 12 months, rising 115.2%. Liquid asphalt rose 17.7% year on year. Truck transportation of freight was up 19.3%.

Metal prices have also risen since tariffs of up to 50% were imposed in 2025, with prices up 25.2% year on year for aluminium mill shapes, 27.6% for steel mill products, and 30% for copper and brass mill shapes.

The AGC said construction companies were also encountering “extreme difficulty” with steel availability and pricing. Contractors report that the firms producing beams and other steel shapes needed to erect building frames say their order books are full through the spring of 2027. It added that some contractors report that they will only receive a “small fraction” of the beams they had ordered and that alternative suppliers are refusing orders from new customers.

“Public policy uncertainty and instability impedes construction activity. Full stop. Having a new transportation bill is necessary before states plan for and launch major projects that boost demand for construction and create opportunities for economic growth,” said Jeffrey D. Shoaf, chief executive officer of the AGC. “Resolving trade disputes will ease the price uncertainty that slows private construction.”