Strong nonresidential construction activity is maintaining price pressures on concrete, steel and other key materials, said Chris Delaney, commercial manager in the Americas division at construction consultancy firm Linesight.
After a brief drop in the second half of 2022, steel prices came under renewed upward pressure in the first half of 2023. At the same time, cement prices have also continued to increase in recent months, said Delaney.
Meanwhile, the cost of energy transition and the ongoing scarcity of construction labor will drive additional upward pressure on prices in the long-term. That increase will sustain materials pricing through much of 2024 and 2025.