The price of various construction inputs increased at its fastest pace in six years in November, a national construction group reported on Tuesday.
The Associated Builders and Contractors found that the price of 11 commonly used construction materials and supplies increased by 0.7 percent in November and were up by 31 percent from the same month last year. The biggest increase was in the price of crude petroleum, which went up by 11 percent from October to November.
Other sizable increases were seen in unprocessed energy materials (up 5.5 percent), natural gas (up 2.9 percent) and prepared asphalt, tar roofing and siding products (up 1.2 percent). Anirban Basu, chief economist for the ABC, said one cause of the increases has been the currently strong global economy.
Basu said he expects prices to either remain steady or continue rising next year.
“This will place more pressure on estimators who must increasingly build into their bids the possibility of cost increases over the course of individual projects,” Basu said. “Labor shortages continue to represent the number one concern of construction firms in America, but materials price inflation can no longer be ignored.”