Ken Simonson, chief economist at the Associated General Contractors of America, echoed Basu’s concerns about rising input costs and its impact on contractors’ bids and project expenses.
“Prices for construction inputs have risen faster than contractors’ bids every month so far in 2024,” said Simonson. “In addition, persistently long lead times for electrical equipment are adding to the cost of many building and infrastructure projects.”
While iron, steel, asphalt and gypsum product prices fell in April, oil and copper prices surged, driving the overall monthly increase, said Basu.
For example, prices increased in two of the three energy subcategories in April. Crude petroleum prices jumped 10.6%, while unprocessed energy materials prices increased 8.2%. Natural gas costs decreased slightly by 0.9% in April.
