Construction Costs
Showing Tariff Impacts, Material Prices Rise in March
Courtesy of Bureau of Labor Statistics
Construction material prices rose 0.5% on a monthly basis in March, with yearly prices up 0.8%, according to the U.S. Bureau of Labor Statistics’ Price Producer Index released April 11. While U.S. tariff application ordered by the Trump administration to various countries remains volatile, prices for many materials are beginning to see the effects.
“Lumber and metals prices shot up in March, while contractors’ inboxes are bulging with ‘Dear Valued Customer’ letters announcing further increases for many products,” said Ken Simonson, chief economist at Associated General Contractors of America in a press release. “Rapid-fire changes in tariffs threaten to drive prices higher for many essential construction goods.”
Steel mill product prices rose 7.1% in March, compared to February 2025, while prices for copper wire and cable as well as iron and steel each increased 5.5% in the same time period. Softwood lumber also experienced a significant increase, at a rate of 4.7%.
“The emerging effects of tariffs are glaring in the March data release, with iron and steel, steel mill products and copper wire and cable prices all rising more than 5% for the month,” Anirban Basu, chief economist at Associated Builders and Contractors announced. “While contractors remain busy for the time being, according to ABC’s Construction Backlog Indicator, this pace of input price escalation, coupled with rising uncertainty, will cause projects to be delayed and canceled if it persists for any meaningful length of time."
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