Tariffs Propel Construction Materials Prices Up 2.8% in 2025
Event summary
- Construction input prices fell 0.6% in December 2025 but remain 2.8% higher than a year ago.
- Nonresidential construction input prices rose 3.2% year-over-year, driven by tariff-exposed materials.
- Copper wire and cable prices surged 4.6% in December, up 22% year-over-year.
- Primary nonferrous metals prices increased nearly 62% over the past 12 months.
- 70% of ABC members expect stable or growing profit margins over the next two quarters.
The big picture
The construction industry is grappling with the dual forces of tariff-driven price increases for key materials and softer demand for construction services. While overall materials prices saw a slight decline in December 2025, the upward pressure from trade policy on specific inputs like copper and nonferrous metals remains significant. This dynamic is likely to shape contractor strategies and profitability expectations in the near term.
What we're watching
- Tariff Impact
- How sustained tariffs will affect prices of key construction materials like copper and nonferrous metals.
- Contractor Optimism
- Whether contractor confidence can be maintained amid rising material costs.
- Demand Dynamics
- The pace at which soft demand for construction services will influence prices of non-tariff-exposed materials.
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