{"id":65824,"date":"2018-07-12T16:48:37","date_gmt":"2018-07-12T20:48:37","guid":{"rendered":"https:\/\/www.constructionspecifier.com\/?p=65824"},"modified":"2018-07-12T16:48:37","modified_gmt":"2018-07-12T20:48:37","slug":"metal-tariffs-continue-to-ramp-up-u-s-construction-costs","status":"publish","type":"post","link":"https:\/\/www.constructionspecifier.com\/metal-tariffs-continue-to-ramp-up-u-s-construction-costs\/","title":{"rendered":"Metal tariffs continue to ramp up U.S. construction costs"},"content":{"rendered":"<figure id=\"attachment_65825\" aria-describedby=\"caption-attachment-65825\" style=\"width: 351px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2018\/07\/bigstock-Business-Graph-With-Arrow-And-980023.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-65825\" src=\"https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2018\/07\/bigstock-Business-Graph-With-Arrow-And-980023.jpg\" alt=\"The producer price index for aluminum mill shapes increased 20 percent over a 12-month period; copper and brass mill shapes increased 17.4 percent during this period and steel mill products rose 12.3 percent. Photo \u00a9 BigStockPhoto.com\" width=\"351\" height=\"263\" srcset=\"https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2018\/07\/bigstock-Business-Graph-With-Arrow-And-980023.jpg 900w, https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2018\/07\/bigstock-Business-Graph-With-Arrow-And-980023-300x225.jpg 300w, https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2018\/07\/bigstock-Business-Graph-With-Arrow-And-980023-768x576.jpg 768w, https:\/\/www.constructionspecifier.com\/wp-content\/uploads\/2018\/07\/bigstock-Business-Graph-With-Arrow-And-980023-500x375.jpg 500w\" sizes=\"auto, (max-width: 351px) 100vw, 351px\" \/><\/a><figcaption id=\"caption-attachment-65825\" class=\"wp-caption-text\"><span style=\"font-size: 10pt; font-family: arial, helvetica, sans-serif;\">The producer price index for aluminum mill shapes increased 20 percent over a 12-month period; copper and brass mill shapes increased 17.4 percent during this period and steel mill products rose 12.3 percent. <\/span><br \/><em><span style=\"font-size: 10pt; font-family: arial, helvetica, sans-serif;\">Photo \u00a9 BigStockPhoto.com<\/span><\/em><\/figcaption><\/figure>\n<p>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 an analysis of new labor department data conducted by the <a href=\"https:\/\/www.agc.org\/\" target=\"_blank\" rel=\"noopener\">Associated General Contractors of America<\/a> (AGC). The producer price index (PPI) for aluminum mill shapes jumped by 20 percent between June 2017 and June 2018, reports AGC chief economist Ken Simonson; copper and brass mill shapes saw an increase of 17.4 percent during this period, while steel mill products rose 12.3 percent.<\/p>\n<p>\u201cContractors\u2019 costs for a wide range of materials and services have escalated dramatically in the past few months, putting a squeeze on profits and dimming the outlook for both public and private projects,\u201d added Simonson.<\/p>\n<p>He noted that recent tariffs will likely push costs up even further, referring to President Trump\u2019s imposed steel and aluminum tariffs on imports from Canada, Mexico, and the European Union, which went into effect May 31, as well as more than $200 billion in tariffs on Chinese goods.<\/p>\n<p>Other building materials that experienced a surge in price from May 2017 to May 2018 include:<\/p>\n<ul>\n<li>diesel fuel (52.8 percent);<\/li>\n<li>lumber and plywood (18.3 percent);<\/li>\n<li>asphalt felts and coatings (7.5 percent);<\/li>\n<li>ready-mixed concrete (5.5 percent); and<\/li>\n<li>paving mixtures and blocks (5 percent).<\/li>\n<\/ul>\n<p>\u201cMany of these increases far outstripped the 4.3 percent rise in the price index for new construction\u2014what contractors are charging to build projects, implying that contractors\u2019 profit margins are shrinking as they absorb some of the increased costs,\u201d said Simonson.<\/p>\n<p>The PPI for \u201cinputs to construction industries, goods\u201d\u2014a measure of all materials used in construction projects, including items consumed by contractors (<em>e.g.<\/em> diesel fuel)\u2014rose 9.6 percent over 12 months. The year-over-year increase was the steepest since October 2008, Simonson noted.<\/p>\n<p>Imposed metal tariffs are putting cost pressures on many construction firms, asserts AGC, which could result in staffing shortages and less available funds to invest in new technologies.<\/p>\n<p>\u201cThe broader impact of the new tariffs and the trade fights that are now emerging is a significant and costly loss in productivity for many construction firms,\u201d said Stephen E. Sandherr, AGC\u2019s CEO.<\/p>\n<p>To download the PPIs for construction, click <a href=\"https:\/\/www.agc.org\/sites\/default\/files\/Files\/Communications\/PPI_Tables_201806.xlsx\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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. <\/p>\n","protected":false},"author":4887,"featured_media":65825,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1029],"tags":[76,933,1955,1337,4202,4515,138,875,4205,4544],"class_list":["post-65824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-agc","tag-aluminum","tag-associated-general-contractors-of-america","tag-construction","tag-costs","tag-industry-trends","tag-metal","tag-steel","tag-tariffs","tag-trade-war","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - 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