New data from the Associated General Contractors of America (AGC) has found that U.S. construction input costs were up year-over-year for an 11.9 percent increase from September 2025 through 2026.
Construction companies have been hit by what the AGC referred to as “a double whammy” due to rising fuel and material costs, which have had an impact on input costs overall. While many construction firms are absorbing a lot of the cost increases, there is no telling how long this can be sustained, as demand remains weaker in most segments besides data centres.
Petroleum products have been the hardest hit. The producer price index for diesel fuel more than doubled over the past year, up 115.2 percent, impacting transportation costs and the costs of materials like liquid asphalt. Tariffs have also wreaked havoc on metal prices. Aluminum mill shape prices were up 25.2 percent year-over-year, while steel mill products were up 27.6 percent and copper and brass mill shapes up 30 percent. Steel availability and pricing have been a challenge, with order books for some materials full through spring 2027, which impacts existing orders and limits the new orders that can be taken.
“Public policy uncertainty and instability impedes construction activity. Full stop. Having a new transportation bill is necessary before states plan for and launch major projects that boost demand for construction and create opportunities for economic growth,” said Jeffrey D. Shoaf, Chief Executive Officer of the AGC. “Resolving trade disputes will ease the price uncertainty that slows private construction.”
