Tariffs Push Construction Input Prices Higher
Date Posted: January 15, 2026
Posted In: News,
From Construction Dive: Construction input prices increased 0.6% in November as the effects of tariffs became more visible in the data, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index figures.
Both overall and nonresidential construction input costs are 3.4% and 3.8% higher than a year ago, according to the report.
While that annual uptick is relatively modest, it’s also the largest since January 2023 and presents “plenty of cause for concern,” said Anirban Basu, ABC chief economist.
Dive Insight:
The latest PPI report did little to alleviate worries around materials costs, which ranked as one of the top headwinds for contractors in 2026, according to the Associated General Contractors of America.
For example, the producer price index for aluminum mill shapes, which are subject to a 50% tariff, soared 28% from November 2024 to November 2025. Meanwhile, the index for steel mill products, which are also subject to a 50% tariff, increased 4.6%. Other indices on steel products, such as for fabricated structural metal bar joints and rebar, also jumped 16.6%, according to the AGC report.