Construction input prices fell 0.6% in May compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data. Nonresidential construction input prices declined 0.5% for the month.
Overall construction input prices are 3.7% lower than a year ago. Nonresidential construction input prices are 3.4% lower. Prices declined in all three energy subcategories. Crude petroleum prices were down 10.2% in May, while unprocessed energy materials were down 7.8%. Natural gas prices fell 2.0% for the month.
“The headline numbers suggest broad-based deflation in construction materials prices,” said ABC Chief Economist Anirban Basu. “But the declines in input prices are less broad than meets the eye. Much of the deflation is tied to energy, steel and softwood lumber.
“Beyond those spheres, there is plenty of input price inflation,” said Basu. “For instance, concrete prices increased 1.1% for the month and more than 12% for the year. The price of construction machinery and equipment rose marginally for the month and is up more than 9% over the past year. Prices for brick and structural clay tile as well as adhesives and sealants are also up more than 9% over the past 12 months. In short, there are still supply chain challenges, but a weakening global economy has helped place downward pressure on several traded commodities. With so many public and private megaprojects under development in the United States, it is likely that many input price categories will continue to show inflationary tendencies even if the overall economy dips into recession.”
Related Stories
| May 7, 2012
2012 BUILDING TEAM AWARDS: Audie L. Murphy VA Hospital
How a Building Team created a high-tech rehabilitation center for wounded veterans of the conflicts in Iraq and Afghanistan.
| May 3, 2012
2012 BUILDING TEAM AWARDS: Rush University Medical Center
This fully integrated Building Team opted for a multi-prime contracting strategy to keep construction going on Chicago’s Rush University Medical Center, despite the economic meltdown.
| May 3, 2012
Best commercial modular buildings and marketing programs recognized
Judges scored entries on architectural excellence, technical innovation, cost effectiveness, energy efficiency, and calendar days to complete.
| May 3, 2012
Zero Energy Research Lab opens at North Texas
The living lab—the only one of its kind in Texas—is designed to test various technologies and systems in order to achieve a net-zero consumption of energy.
| May 3, 2012
NSF publishes ANSI standard evaluating the sustainability of single ply roofing membranes
New NSF Standard provides manufacturers, specifiers and building industry with verifiable, objective criteria to identify sustainable roofing products.
| May 3, 2012
Ground broken for $94 million hospital expansion at Scripps Encinitas
New facility to more than double emergency department size, boost inpatient beds by 43%.
| May 3, 2012
Rudolph and Sletten, Inc. wins CMAA award
Firm recognized for the renovation of Grossmont-Cuyamaca Community College’s Student Administrative & Griffin Student Center.
| May 2, 2012
Building Team completes two additions at UCLA
New student housing buildings are part of UCLA’s Northwest Campus Student Housing In-Fill Project.
| May 2, 2012
Sasaki selected for 2012 National Planning Firm Award
The award recognizes a firm for its body of distinguished work influencing the planning profession.
| May 1, 2012
White paper discusses benefits of diaphragm and piston flushometer valves
The white paper highlights considerations that impact which type of technology is most appropriate for various restroom environments.
