Construction material input costs are on the rise. According to a recent report from the Associated General Contractors of America, the producer price index for materials and services used in nonresidential construction rose 0.2% in June and 2.3% from June 2024.
The year-over-year increase was the largest since February 2023, according to Data Digest from AGC of America. AGC identified several product areas with the highest y/y price increases: aluminum mill shapes (up 6.3%), steel mill shapes (up 5.1%), fabricated structural metal for bridges (up 22.5%), and bar joists and rebar (up 8.3%). The PPI for flat glass materials was up just 0.1% year over year; however, the PPI is up 25% compared to January 2020.
The PPI doesn’t directly include cost increases from tariffs. However, AGC notes “increases likely reflected reactions to the 50% tariffs on imported steel and aluminum that took effect on June 4.”
Tariffs top concerns for glass industry
In a poll on LinkedIn, the National Glass Association asked individuals what their biggest area of concern was for the next 12 months: 28% said tariffs, 23% said price increases, 44% said few projects and less work.
In the 2025 Top 50 Glaziers report, published in July, 81% of responding glaziers said that tariffs will be a major headwind this year. Tariffs emerged as the top-reported concern for respondents in 2024, as opposed to interest rates in 2023; 54% also said economic slowdown is a concern for 2025 and 52% said inflation.
What people in the industry say
“The irony is that the tariffs’ impacts on construction costs might just price some manufacturers out of their decision to expand or add plants in the U.S.,” says Jeffrey Shoaf, the chief executive officer of the Associated General Contractors of America. “That is why we urge the administration to quickly resolve the underlying disputes behind the tariffs.”
“Many have already been very stingy with quotes due to the volatility in the supply market, so they’ll be better off than others,” says Max Perilstein, founder of Sole Source Consultants, in his June 1 blog, From the Fabricator. “The challenge now is that the market is soft...We have a market in turmoil, and now business leaders must be very proactive on almost everything so that they can navigate even bumpier waters...this is where you really get to know your supply chain.”
“High interest rates, which were expected to go down prior to tariffs, have slowed investment in the construction segment for almost two years now," says a vice president of a glass fabricator who wished to remain anonymous. “The supply chain cannot absorb any price increase right now. Fabricators, glaziers, window makers and general contractors are already running on fumes. Many projects are on bubble and the potential impact to budgets will delay or cancel them.”
