ABC: Tariffs Drove Construction Material Prices Up 2.8% in 2025
Construction input prices decreased 0.6% in December compared to the previous month, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data.
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Nonresidential construction input prices decreased 0.7% for the month.
Overall construction input prices are 2.8% higher than a year ago, while nonresidential construction input prices are 3.2% higher. Prices increased in 2 of 3 energy categories last month. Natural gas and unprocessed energy materials prices were up 34.8% and 5.5%, respectively, while crude petroleum prices were down 2.7% in December.
“Construction materials prices posted a welcome decline in December, yet key inputs are still experiencing rapid escalation,” said Anirban Basu, ABC chief economist “This is especially true for materials most exposed to tariffs.”
For example, he said copper wire and cable prices, jumped an incredible 4.6% in December and are up more than 22% year over year, and prices for primary nonferrous metals are up nearly 62% over the past 12 months.
“Prices for commodities less exposed to tariffs, like asphalt or crushed stone, will likely remain tame in the coming months due to soft demand for construction services,” Basu said. “While that may limit increases in overall materials prices, trade policy will continue to put upward pressure on certain materials.”
Despite the price fluctuations, he said contractor optimism remains strong with 7 in 10 ABC members anticipating profit margins to remain stable or grown over the next two quarters.
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