• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Groundbreak Carolinas

MENUMENU
  • News
  • Careers
  • Resources
    • 2020 ABC of the Carolinas EIC Awards
    • AEC Industry Blogs
    • AEC School Directory
    • Asbestos Resources
    • Content Marketing
    • Coronavirus Resources
    • Diversity and Inclusion
    • Economic Forecasts
    • GroundBreak Carolinas Newsletter Archive
    • Health and Wellness
    • New Silica Standard Resources
    • Workforce Development Resources
  • Subscribe

GroundBreak Carolinas

Your source for construction industry news in the Carolinas

MENUMENU
  • Featured
  • Business
    • Accounting
    • Government Affairs
    • Management
    • Human Resources
    • Finance, Bonding, & Insurance
    • Leadership
    • Marketing & BD
    • Operations Management
    • Legal
    • Risk Management
    • Technology
  • Markets
    • Commercial
    • Distribution / Warehouse
    • Government Facilities
    • Health Care
    • Hotels / Hospitality
    • Industrial/Manufacturing
    • Mission Critical / Data Centers
    • Residential/Multi-Family Residential
    • Office Buildings
    • Power / Energy
    • Retail / Shopping Centers
    • Roads, Bridges and Highways
    • Schools (K-12 and Higher Education)
    • Strategy
  • Workforce
    • Apprenticeships
    • Education
      • Colleges
      • High Schools
      • Technical Schools
    • Recruiting
    • Safety
    • Training
    • Veterans Programs
  • Operations
    • Architecture
    • Contracting
    • Energy
    • Engineering
    • Equipment
    • Facilities
    • Products
  • Projects
  • People
  • Economic Development
  • Partners
  • News
  • Events
  • Careers
  • Resources
    • AEC Industry Blogs
    • AEC School Directory
    • Asbestos Resources
    • Content Marketing
    • Coronavirus Resources
    • Economic Forecasts
    • GroundBreak Carolinas Newsletter Archive
    • New Silica Standard Resources
    • Workforce Development Resources
  • Let’s Talk Construction

Business

Monthly Construction Input Prices Rise in September, Says ABC

by Joan Krause on October 14, 2020

WASHINGTON, Oct. 14, 2020 — Construction input prices increased 1.6% in September compared to the previous month, according to an Associated Builders and Contractors analysis of Producer Price Index data released today by the U.S. Bureau of Labor Statistics. Nonresidential construction input prices rose 1.4% for the month.

Among 11 subcategories, eight experienced monthly increases, with the largest increase registered in softwood lumber prices, which rose by 27.4%. The price of softwood lumber is up an astonishing 81.2% over the past year, a reflection of supply chain disruptions combined with the rapid expansion of single-family homebuilding. Natural gas prices were 12.1% higher than the previous month, while crude petroleum and unprocessed energy materials, were down 9.8% and 0.7%, respectively. Steel mill products was the only other subcategory in which prices declined in September, falling 0.1%.

“Rising materials prices represents yet another risk facing nonresidential contractors going forward,” said ABC Chief Economist Anirban Basu. “For months, many contractors have expressed concern that global supply chain disruptions would produce a combination of materials shortages and rising prices. Indeed, many contractors have reported occasional issues procuring necessary inputs to production, further slowing construction service delivery. This has been reflected in ABC’s Construction Confidence Index, which showed a mere 23% of contractors expect their profit margins to expand over the next two quarters. But in general, materials prices have not raced higher as feared with the noteworthy exception of softwood lumber.

“That may be changing,” said Basu. “Materials prices expanded nearly 2% in September and are now higher than they were at the same time last year. Despite the lingering pandemic, the global economy has been recovering, increasing demand for key commodities. Rapid viral spread, including in Europe and parts of North America, render materials shortages more likely during the winter months. Were Congress to pass a stimulus package under current conditions, especially one offering a meaningful infrastructure component, materials prices could rise even faster.

“But fears of persistently rising materials prices may be overblown,” said Basu. “For now, Congress is not focused on passing a near-term stimulus. The pace of economic expansion has been softening recently, and the global economy is poised to slow during the winter months as economic shutdowns have begun to reappear. All of this suggests potentially softening demand for materials during the months ahead, which would help to suppress rapid price increases.”

Topics: Business
ABC, Associated Builders and Contractors (ABC), Construction Input prices

Primary Sidebar

What We’re Reading

  • Williams Development, True Homes launch 231-home project in Winston-Salem
    Source: Business North Carolina Published on May 27, 2025
  • Turkish company to make $82 million investment in Goldsboro, create 216 jobs
    Source: Business North Carolina Published on May 27, 2025
  • Charlotte lawyers gain key posts at K&L Gates law firm
    Source: Business North Carolina Published on May 27, 2025
  • Meals on Wheels celebrates $11M raised with topping-off ceremony
    Source: Greenville Journal Published on May 25, 2025
  • Status update: 7 Upstate commercial real estate projects
    Source: Upstate Business Journal Published on May 22, 2025

Recent Posts

  • Design-Build for Manufacturers: Collaboration is King
  • Senior Executives and Young Leaders Give Firsthand Advice to New Graduates Entering AEC Industry
  • Tariffs and the Transformation of Construction Financing and Delivery
  • Optimism and Opportunity: SCEDA’s 2025 Conference Highlights South Carolina’s Economic Momentum Amid Uncertainty
  • Western NC Construction Career Day Draws 600 High Schoolers: Inspiration for a Resilient Region
  • Search
  • News
  • Careers
  • Resources
    • 2020 ABC of the Carolinas EIC Awards
    • AEC Industry Blogs
    • AEC School Directory
    • Asbestos Resources
    • Content Marketing
    • Coronavirus Resources
    • Diversity and Inclusion
    • Economic Forecasts
    • GroundBreak Carolinas Newsletter Archive
    • Health and Wellness
    • New Silica Standard Resources
    • Workforce Development Resources
  • Subscribe

Footer

  • About GBC
  • Contact Us
  • Submit Editorial
  • Submit Event
  • Partnerships/Contributors

Sponsorship Opportunities

Join Our Mailing List

"*" indicates required fields

Name*
By clicking Submit you agree to our Privacy Policy and Terms of Use.
This field is for validation purposes and should be left unchanged.

Copyright © 2025 GroundBreak Carolinas LLC.

  • Privacy Policy
  • Terms of Use