Results from the Bureau of Labor Statistics showed that prices for construction materials rose 0.8% in March. According to Associated Builders and Contractors, Inc., it was the largest monthly increase in more than two years.
Prices for construction materials have risen for two straight months after falling for the previous six.
Although prices are up on a monthly basis, statistics showed that input prices are down 3.6% on a year-over-year basis, the fourth consecutive month this has occurred. The steady decline in input prices is the longest streak since 2009 as crude petroleum prices fell 4% in March and are down eight of the last nine months.
"Though U.S. nonresidential and residential segments continue to expand, global construction volumes remain suppressed by widespread weakness in Asia, Europe, and Latin America," said ABC Chief Economist Anirban Basu. "With the U.S. dollar likely to get stronger over the next few months as domestic interest rates begin to rise, there is little likelihood of significant increases in construction input prices over the next six to nine months. Overall producer prices managed to increase 0.5% on a monthly basis, the first increase since June 2014. This reading serves to increase the likelihood that the Federal Reserve will begin to increase short-term interest rates later this year."
There were only two key material categories that saw an increase in construction prices in March: fabricated strucutal metal produce prices (0.4%) and natural gas prices (1.5%).
While these two inputs rose, others fell:
- Prices for plumbing fixtures dropped 0.3% in March but remain up 2.5% year-over-year.
- The price of prepared asphalt, tar roofing, and siding dipped 0.4% in March.
- Iron and steel prices dropped 2.5% in March and are down 11.5% year-over-year.
- Prices for steel mill products slipped 1.9% in March and are down 4.8% on a yearly basis.
- Concrete products prices were flat but up 4.1% year-over-year.
- Crudge petroleum prices dropped 4% in March and are down 55% from the same time last year.
- Crude energy material costs decreased 1.4% in March and are down 43.7% from the previous year.
- Softwood lumed prices fell 4.1% and are down 7.4% year-over-year.
- Prices for nonferrous wire and cable were flat in March and rose 2.5% on a yearly basis.
To read the entire report, click here.
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.
