Showing Tariff Impacts, Material Prices Rise in March

Building materials costs rose 0.5% on a month-to-month foundation in March, with yearly costs up 0.8%, in line with the U.S. Bureau of Labor Statistics’ Value Producer Index launched April 11. Whereas U.S. tariff software ordered by the Trump administration to varied nations stays unstable, costs for a lot of supplies are starting to see the results.

“Lumber and metals costs shot up in March, whereas contractors’ inboxes are bulging with ‘Pricey Valued Buyer’ letters asserting additional will increase for a lot of merchandise,” mentioned Ken Simonson, chief economist at Related Normal Contractors of America in a press release. “Speedy-fire modifications in tariffs threaten to drive costs greater for a lot of important building items.”

Metal mill product costs rose 7.1% in March, in comparison with February 2025, whereas costs for copper wire and cable in addition to iron and metal every elevated 5.5% in the identical time interval. Softwood lumber additionally skilled a major improve, at a fee of 4.7%.

“The rising results of tariffs are obtrusive within the March information launch, with iron and metal, metal mill merchandise and copper wire and cable costs all rising greater than 5% for the month,” Anirban Basu, chief economist at Related Builders and Contractors announced. “Whereas contractors stay busy in the meanwhile, in line with ABC’s Building Backlog Indicator, this tempo of enter worth escalation, coupled with rising uncertainty, will trigger initiatives to be delayed and canceled if it persists for any significant size of time.”