After rising for 18 months straight, construction material prices fell for the second consecutive month in April, posting a 1.1% annual decline, Construction Dive reports. The most notable year-over-year construction input declines include a 64.1% drop in prices for natural gas and a 38.9% decline in softwood lumber prices, which were particularly volatile mid-pandemic.
Some materials, such as cement, concrete products, and gypsum products, are still seeing year-over year increases, however, with gains of 13.7%, 13.2%, and 12.1%, respectively.
“Despite the annual decline in input costs, contractors’ profit margins are still under pressure,” said [Anirban] Basu. “Due to higher borrowing costs and labor costs and the substantial increase in materials prices over much of 2021 and 2022, the proportion of contractors that expect their profit margins will increase over the next two quarters has slipped in recent months.”
Advertisement
Related Stories
Awards
6th Annual Most Valuable Product Awards
Drumroll ... Please join us in celebrating our 6th Annual MVP Awards winners, which represent the best in innovative building products
Sustainability
Fortera Takes Concrete Steps to Reduce the Climate Impact of Cement
Clean-tech company Fortera, which uses technology to capture carbon emissions form cement manufacturing, will open its first commercial-scale operation on April 12, 2024, in California
Building Materials
Lumber Leads Building Materials Prices Higher in March
Overall, the cost of building materials rose during March, with softwood lumber, gypsum products, and concrete all seeing price increases. Only steel mill materials saw price drops