The price of building materials show a notable rise compared to last year, according to the Associated General Contractors of America (AGC). The producer price index for aluminum products rose by 20%, lumber and plywood by 18.3%, and steel products by 12.3%. Despite these increasing costs, Chief Executive Officer of the Louisiana AGC, Ken Naquin says no reports of project delays have been made. The Trump administration imposed steel and aluminum tariffs on imports form Canada, Mexico, and the EU on May 31. Most recently tariffs began applying to goods from China that include a range of steel products, with additional tariffs still being discussed.
The AGC noted that while the index for all materials used in construction projects, a measure that includes fuel, is up 9.6% over the past year, the price of new construction is up 4.3%. That means contractors are absorbing the higher costs.
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