Construction Material Costs Down in October

November 15, 2012

Construction contractors face a continuing cost squeeze, even though a key price index for construction materials dipped in October and showed only a moderate increase over the past year, according to an analysis of federal figures by AGC.

Association officials warned that recent and announced price increases may threaten the survival of some contractors. “Although several materials retreated in price last month, prices in the past year have still outpaced the tiny increases in contractors’ bids,” said Ken Simonson, chief economist for AGC.

“In addition, some of the price drops have already reversed, or will soon, leaving contractors who have already submitted bids vulnerable to losses.”

Source: AGC