MITCHELL, SD (Mitchell Now) — Construction input costs continued to rise in September, according to new federal data analyzed by the Associated General Contractors of America. The producer price index for materials and services used in nonresidential construction increased 0.2% for the month and 3.2% compared to September 2024.
AGC officials said the data shows renewed cost pressures for contractors, even as demand in several private-sector segments remains soft. Macrina Wilkins, the association’s senior research analyst, said persistent but uneven price increases are disrupting procurement and production.
Wilkins noted that month-to-month swings make it difficult for firms to plan effectively and protect thin margins.
Several material categories posted sharp year-over-year increases. The producer price index for aluminum mill shapes rose 1.7% in September and is up 26% from a year earlier. Steel mill products fell 1.5% for the month but climbed 12.4% year-over-year. Precast concrete products increased 0.3% in September and 5.5% over 12 months. Diesel fuel rose 1.8% in September and 8.2% year-over-year.
AGC officials said rising input costs are colliding with cooling bid prices, putting added pressure on contractors. They also cited uncertainty surrounding tariff policy and global trade conditions as factors making long-term planning more difficult.
“Contractors can manage modest cost increases, but they need a predictable environment to keep projects moving,” said Jeffrey D. Shoaf, the association’s chief executive officer. Shoaf said greater clarity on trade and tariff issues would help stabilize markets and give firms more confidence to plan ahead.
To view the full producer price index data, visit the U.S. Bureau of Labor Statistics: https://www.bls.gov/ppi/.
