Construction input prices jumped 1.4% in January, marking the largest monthly increase in two years, according to an analysis by Associated Builders and Contractors. However, the price jump also stems from a rush to purchase materials ahead of potential tariffs, said Anirban Basu, ABC chief economist. The cost of inputs to construction now sits 40.5% higher than February 2020, according to the report. Even before Trump’s inauguration, the high probability of tariffs already appeared to have been driving price increases, said Ken Simonson, AGC chief economist. “A strong majority of contractors expect their sales to increase over the next six months,” said Basu. “The combination of increased demand for construction inputs and ongoing supply chain confusion suggest input price escalation could accelerate through the first half of 2025.”
https://www.constructiondive.com/news/tariff-fears-biggest-construction-cost-jump-2-years/740116/