Construction Materials Prices Squeeze Strapped Contractors
The amount that contractors pay for a range of key construction materials edged down 0.1% in November but climbed 6.2% from a year earlier, outstripping the increase in contractors’ bid prices for finished buildings, according to an analysis of producer price index figures released recently by the Associated General Contractors of America.
Officials with the construction association warned that the cost squeeze on contractors, combined with declining public sector investments in construction, may drive many contractors out of business.