The price of new nonresidential buildings accelerated in October as contractors attempted to recoup fast-rising costs for materials and labor, according to an analysis by the Associated General Contractors of America (AGCA) of new Labor Department data. Association officials said trade tensions and labor shortages are contributing to higher construction prices, making it harder for public officials to improve aging and over-burdened infrastructure.
According to an analysis of new government data by the Associated General Contractors of America (AGCA), construction spending increased 0.1 percent from July to August and 5.3 percent for eight months of 2018 combined, with continued year-to-date gains for major public and private categories.
Construction costs accelerated again in June, with steep price increases for a range of building and road construction materials as tariffs against foreign goods come into effect, according to a report from the Associated General Contractors of America.
In response to President Donald Trump’s announcement last month that the United States would be imposing tariffs on metal imports from Canada, the European Union, and Mexico, the Canadian government introduced dollar-for-dollar retaliation duties. Beginning July 1, a number of U.S. steel products faced fees of 25 percent, while an array of aluminum products cost Canadian importers 10 percent more.
Construction costs continued to accelerate in May with double-digit increases for a range of building and road materials, including many that are subject to newly proposed tariffs that could drive prices even higher, reports the Associated General Contractors of America.