Dive Brief:
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The cost of construction materials has started to decline alongside dips in oil and petroleum prices, according to the U.S. Department of Labor’s Producer Price Index.
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That good news for contractors is also bad news for steel and cement manufacturers who sell their products to the petroleum sector. Less drilling, of course, means dwindling demand for those materials.
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At the same time, commercial builders are paying 2% less for steel, according to Associated Builders and Contractors. ABC estimated that non-residential construction material costs fell 2.1% last month and 4.6% from a year ago.
Dive Insight:
Still, overall commercial construction spending climbed 4.8% from a year ago. The American Institute of Architects has predicted that spending on non-residential construction will rise by 7.7% this year, more because of the cost of labor than the price of materials.
