News
Construction Costs · Fuel Prices · Metals Prices · Supply Chain
The Associated General Contractors of America reports nonresidential construction material prices rose 3.1% year-over-year by February 2026, driven by sharp increases in metals and fuel, causing project delays and making further increases likely due to the Iran war.
The producer price index for materials and services used in nonresidential construction increased 0.1 percent from January. Metals prices saw significant year-over-year jumps from February 2025 to February 2026, with aluminum mill shapes up 39.1 percent, steel mill products up 20.9 percent, fabricated structural metal bar joists and rebar up 20.0 percent, and copper and brass mill shapes up 15.1 percent.
Diesel fuel prices surged 20.3 percent from January, contributing to a 3.1 percent increase in truck transportation costs over the past year. Ken Simonson, AGC's chief economist, states these increases occurred before the Iran war, which now pushes costs further due to Middle East supply disruptions.
Jeffrey D. Shoaf, AGC's chief executive officer, warns that project owners will put projects on hold if price increases continue and urges federal officials to stabilize supply chains and reduce tariff uncertainty.
Houthi Attacks Elevate Shipping Costs, Disrupt Global Trade
Construction Costs Surge as Metals, Fuel Prices Jump(current)
