Prices for construction materials climb at highest rate since pandemic, driven by steep cost increases for fuel, aluminum, copper and deliveries, according to an analysis by the Associated General Contractors of America (AGC) of government data released on June 11.

AGC said the Producer Price Index  (PPI) for inputs to new nonresidential construction rose +1.8% in May and +8.4% from May 2025, the largest year-over-year jump since the pandemic, Association officials warned that contractors have not been able to pass along most of those price increases to their clients, and are getting squeezed by the rapid increase in costs for the things they need to build projects.

These dramatic increase in the PPI hav a direct impact on key electrical products, had particularly wire and cable in EM’s Electrical Price Index. According to the May data, PPI prices for Building Wire & Cable and Power Wire & Cable were up +17.3% and 24.2% YOY, respectively.
“Runaway prices for key construction inputs are pushing up costs twice as fast as the +4.2% rise in the consumer price index,” said Ken Simonson, the association’s chief economist, in the press release. “Contractors are being hit by a double whammy of rising materials prices and much lower increases in what they can charge for new projects.”
The +8.4% annual increase in construction input prices was the most since 2021 and substantially outpaced the +3.5% rise in contractors’ bid prices, as indicated by the index for new nonresidential building construction, Simonson noted.

That disparity suggests contractors’ margins are being squeezed by the ongoing rise in input costs. Energy-related inputs continued to post steep increases in May. Diesel fuel prices more than doubled over 12 months, rising +105.9% since May 2025 and +19.9% in the latest month alone. Truck transportation of freight, a measure of the costs for the thousands of deliveries required at many job-sites, climbed +3.4% for the month and +17.3% YOY.
Metals prices also continued to increase, too. Aluminum mill shapes soared +48.8% from May 2025 and +4.2% in the most recent month, while copper and brass mill shapes increased +26.8% YOY and +4.3% MTM (month-to-month). The price index for structural steel — fabricated bar joists and rebar — rose +15.6% over 12 months, including a +1% rise from April to May.

AGC officials noted that turmoil in the Middle East and ongoing questions about possible new tariffs are contributing to the rising materials prices at a time when demand for construction, outside of data centers, is relatively soft. They said resolving trade disputes with other countries will help with materials prices. And they urged Congress to pass a new highway and transit bill to help boost demand for construction.

“There are steps federal officials can take to address rising materials prices and help contractors manage these growing costs,” said Jeffrey Shoaf, AGC’s CEO, in the press release. “Providing certainty on tariff levels will help with materials prices, while passing a new transportation bill by the end of September will help provide greater certainty for construction demand.”