Nobody saw it coming. After more than a decade of relative price stability, contractors have been blind- sided by the largest price hikes for materials since the early 1970s. Steel products caused the most damage but prices for lumber, plywood, gypsum wallboard, copper, stainless steel, pipe and fuel are all joining in to pummel contractors.
In the steel industry, prices have hit crisis proportions, affecting everything from bridge girders to hinges. In the first quarter, construction faced price hikes for steel products ranging from 20 to 60%. Firms with fixed-price contracts were devastated. Many are being pushed toward bankruptcy, with fabricators particularly vulnerable, observers say.