Construction Input Prices Jump 0.6% in December - Modern Distribution Management

Log In

Construction Input Prices Jump 0.6% in December

An Associated Builders and Contractors analysis of Producer Price Index data shows prices increased over November.
Highlands Ranch, Colorado-based Kodiak Building Partners has acquired Oregon-based Miller Lumber Company, according to trade publication reports.

Construction input prices in December rose 0.6%, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics’ Producer Price Index data.

ABC said nonresidential construction input prices also rose 0.6% in December compared with the prior month.

Input prices for all three energy subcategories decreased for the month, with crude petroleum was down 16.4% in December.

Unprocessed energy materials and natural gas were down 13.1% and 12.0%, respectively, according to the analysis.

Prices in all three energy subcategories, however, are still up “significantly” on a year-over-year basis. Construction input prices overall are up 22.3% from 2021, while nonresidential construction input prices have increased 23.2% over that time, ABC said.

“The definition of transitory continues to expand along the dimension of time,” ABC Chief Economist Anirban Basu said. “A year ago, Federal Reserve officials and many others thought that elevated inflationary pressures would have abated by now. They have not. Instead, materials prices remain elevated and generally continue to march higher.”

Basu added, “Much attention has been devoted to global supply chain disruptions. Thanks to the omicron variant, those disruptions will persist through the first quarter of 2022. That translates into additional upward pressure on construction materials prices, something that estimators must consider as they submit bids for future work. Among the other implications of materials price increases is the redesign of projects to substitute for expensive inputs, such as steel. Not only does this put pressure on architects and engineers to identify alternative designs and materials, but it also means that contractors may end up working with inputs with which they are less familiar.”

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.