Tariffs Pushed Construction Input Costs Up 2.8% in 2025 — More Pressure Ahead in 2026

Nonresidential construction input costs finished 2025 up 3.2% year over year largely due to tariff-related impacts, while overall construction costs including residential builds gained 2.8% according to an Associated Builders and Contractors analysis of Bureau of Labor Statistics Producer Price Index data. The producer price index for aluminum mill shapes surged 30.5% from December 2024 to December 2025 — the largest year-over-year increase since 2022 — while steel mill products jumped 17%, and ABC chief economist Anirban Basu warned that “construction costs are sure to rise further in 2026 as long as the current tariffs remain in place,” a direct warning for Oregon and Washington contractors pricing new projects.

Source: Construction Dive / Associated Builders and Contractors Read the full story: https://www.constructiondive.com/news/tariffs-nonresidential-construction-costs-2025-producer-price-index/811023/