AGC Blames Tariffs for Spikes in Cost of Construction Materials

Soaring prices and delivery delays for steel, lumber and other materials are squeezing the finances of construction firms already burdened by the pandemic, said the Associated General Contractors of America. The trade group called on the Biden administration to review and rescind a range of trade tariffs, which it claims are contributing to unmanageable price increases for the construction industry.

“The extreme price increases, as reflected in today’s producer price index report and other sources, are harming contractors on existing projects and making it difficult to bid new work at a profitable level,” said Ken Simonson, AGC’s chief economist. “While contractors have kept bids nearly flat until now, project owners and budget officials should anticipate the prospect that contractors will have to pass along their higher costs in upcoming bids.”