The Associated General Contractors of America (AGC) analyzes construction material cost trends and compares them to average fees contractors can charge. October 2011 figures were released Tuesday and show that prices for key construction materials dropped slightly in October. Despite the recent drop, most materials cost more now than at the same time last year. For example, diesel fuel dropped 2.2 in October but is 27.3 percent higher than October 2010. And although gypsum, cooper, and brass prices all decreased marginally during the past 12 months, costs for steel mill products rose 13.6 percent.
Prices for construction materials are predicted to remain volatile in the near future according to AGC chief economist Ken Simpson. He adds that while material costs are still high and unstable, some relief has occurred because fees for new construction projects are slightly better this month and up overall when compared with October 2010 statistics. An overall imbalance lingers between what materials cost and the prices contractors can charge, however, which puts a strain on builders primarily in the commercial sector but also those doing residential work. Click here to view complete details on the AGC price indexes.
