The Associated General Contractors of America has reported a 3.3 percent increase in the producer price index for materials and services used in nonresidential construction from December 2024 to December 2025. This rise is attributed mainly to significant increases in the prices of aluminum, steel, and copper.
Ken Simonson, chief economist for the association, stated, “Even though these indexes are based on selling prices of domestic producers, it is clear that the steep tariffs on imported metals and products are enabling U.S. sellers to push up costs for construction materials and equipment. Construction costs are sure to rise further in 2026 as long as the current tariffs remain in place.”
Aluminum mill shapes saw a 30.5 percent year-over-year increase—the largest since early 2022—following the imposition of a 50 percent tariff last June. Steel mill products also experienced a notable jump of 17 percent over the past year, while copper and brass mill shapes rose by 11.8 percent. These metals are all subject to high tariffs.
Simonson added, “These higher prices are now showing up as well in the cost of construction equipment and machinery. That index rose 5.6 percent in the latest 12 months, the most in two years. And with copper futures prices setting new records this month, the cost of copper in construction equipment and projects is sure to go even higher this year if the tariffs stay in place.”
Officials from the association have called on federal leaders to resolve ongoing trade disputes with countries such as China and Canada. They believe that reaching trade agreements could help lower tariff levels and bring more predictability to material pricing for contractors.
Jeffrey D. Shoaf, chief executive officer of the association, said: “It is hard for contractors to make reliable estimates on how much to charge for new construction projects when they don’t know how much prices will increase for key materials. Getting fair trade agreements completed will provide the kind of tariff and price stability contractors need to predict future costs.”
More details about recent changes can be found by viewing producer price index data.
