A new report from the Associated Builders and Contractors found that prices for inputs to construction industries rose by 1.1% in May—the largest month-over-month increase in more than two years. The rise is also the third time in the last 10 months that construction materials prices have grown on a monthly basis.
Although prices saw gains in May, year-over-year prices dropped by 3% in May and have now fallen by more than 3% in each of the first five months of 2015. Of the 11 key construction inputs, only three experienced monthly price increases in May.
"Commodity markets experienced a reversal of several patterns that have been in place for many months in May," said Associated Builders and Contractors' Chief Economist Anirban Basu. "Most notably, key energy prices rose meaningfully, with oil prices rising to roughly $50 per barrel. While natural gas prices did not rise for the month according to the producer price index, they remained relatively flat after falling by more than 10% in three of the year's first four months. Many economic forces were at work, including a weaker U.S. dollar. Many commodities are priced in dollars, which helps to lay a floor under the associated prices. With the European economy showing signs of life the dollar's rise against the euro has effectively stalled."
Basu added that stakeholders should not consider this news the beginning of a new trend as there are several reasons to expect the U.S. dollar to advance against other major currencies over the course of the next few months. Of these expectations, there's an anticipated shift in monetary policy. An increase in interest rates will help to suppress further increases in commodity prices including those related to energy.
Only three of the key materials' prices increased in May:
• Crude petroleum prices expanded 15.6% in May but are down 42% from the same time last year.
• Crude energy materials prices gained 7.7% in May but are 37.3% lower year-over-year.
• Nonferrous wire and cable prices expanded 0.9% on a monthly basis but shed 2.8% on a yearly basis.
Eight of the 11 key construction inputs did not expand for the month:
• Fabricated structural metal product prices dropped 0.5% lower for the month but have expanded 0.8% on a year-over-year basis.
• Natural gas prices fell 1.7% in May and are down 48.4% from the same time one year ago.
• Prices for plumbing fixtures remained flat in May and are up 4.9% on a year-over-year basis.
• Prices for prepared asphalt, tar roofing and siding fell 1.5% for the month and are down 1.9% on a year-ago basis.
• Iron and steel prices fell 1% in May and are down 14.9% from the same time last year.
• Steel mill products prices fell 2% for the month and are 11% lower than one year ago.
• Softwood lumber prices fell 2.5% and are 7.9% lower than one year ago.
• Concrete product prices remained flat in May and are up 4.9% on a yearly basis.
Related Stories
| Jun 27, 2013
Thermal, solar control designs can impact cooling loads by 200%, heating loads by 30%
Underestimating thermal bridging can greatly undermine a building’s performance contributing to heating load variances of up to 30% and cooling load variances of up to 200%, says the MMM Group.
| Jun 19, 2013
Florida is latest battleground over LEED standards centered on certified wood
A nationwide battle over forest certification standards continues to be played out nationally and in Florida with legislation passed this month.
| Jun 14, 2013
Purdue, industry partners test light steel framing for seismic safety
A partnership of leading earthquake engineering researchers from top U.S. and Canadian universities and design professionals from the steel industry have begun the final phase of a three-year project to increase the seismic safety of buildings that use lightweight cold-formed steel for their primary beams and columns.
| Jun 13, 2013
Health Product Declaration Collaborative names Knott as Executive Director
John L. Knott Jr. has been named as the Health Product Declaration Collaborative’s (www.hpdcollaborative.org) first Executive Director following a national search. The Health Product Declaration Collaborative (HPDC) is a customer-led standards-setting organization committed to the continuous improvement of the building industry’s environmental and health performance, through transparency and innovation in the building product supply chain.
| Jun 4, 2013
SOM research project examines viability of timber-framed skyscraper
In a report released today, Skidmore, Owings & Merrill discussed the results of the Timber Tower Research Project: an examination of whether a viable 400-ft, 42-story building could be created with timber framing. The structural type could reduce the carbon footprint of tall buildings by up to 75%.
| May 21, 2013
7 tile trends for 2013: Touch-sensitive glazes, metallic tones among top styles
Tile of Spain consultant and ceramic tile expert Ryan Fasan presented his "What's Trending in Tile" roundup at the Coverings 2013 show in Atlanta earlier this month. Here's an overview of Fasan's emerging tile trends for 2013.
| May 17, 2013
5 things AEC pros need to know about low-e glass
Low-emissivity glasses are critical to making today’s buildings brighter, more energy-efficient, and more sustainable. Here are five tips to help AEC professionals understand the differences among low-e glasses and their impact on building performance.
| May 14, 2013
Paints and coatings: The latest trends in sustainability
When it comes to durability, a 50-year building design ideally should include 50-year coatings. Many building products consume substantial amounts of energy, water, and petrochemicals during manufacture, but they can make up for it in the operations phase. The same should be expected from architectural coatings.
| May 9, 2013
10 high-efficiency plumbing fixtures
From a "no sweat" toilet to a deep-well lavatory, here's a round up of the latest high-efficiency plumbing fixtures.
