Construction input prices rose sharply again in April, driven by steep increases in fuel, transportation, and metals costs, according to an analysis of newly released government data by the Associated General Contractors of America.
The producer price index for inputs to new nonresidential construction increased 1.7 percent in April and 6.6 percent compared to April 2025. By comparison, the producer price index for new nonresidential building construction—a measure of what contractors estimate they would charge to construct a fixed set of buildings—rose only 3.6 percent over the past year, highlighting growing pressure on contractor margins.
“Construction input costs continue to rise much faster than contractors’ bid prices, particularly for energy-intensive and metals-related materials,” said Macrina Wilkins, director of market insights for the Associated General Contractors of America. “That growing gap is making it increasingly difficult for contractors to price projects accurately and is raising the risk of delays, redesigns, and deferred construction activity.”
Energy-related materials posted some of the largest increases in April. Diesel fuel prices surged 13.6 percent for the month and were up 73.8 percent year-over-year. Asphalt prices also jumped sharply, climbing 41.0 percent in April and 18.0 percent compared to a year ago.
Metals pricing continued to trend upward as well. Aluminum mill shapes rose 37.3 percent from April 2025, while copper and brass mill shapes increased 20.9 percent over the same period. Steel mill products climbed 13.3 percent year-over-year, while fabricated structural metal bar joists and rebar both increased 13.6 percent.
Transportation and equipment costs also moved higher. The producer price index for truck transportation of freight increased 8.1 percent in April and 15.2 percent over the year, reflecting rising fuel expenses and continued supply chain pressures. Construction machinery and equipment prices rose 4.0 percent compared to April 2025.
Association officials noted that escalating diesel and transportation costs are placing additional strain across the construction supply chain. They added that proposals to temporarily suspend the federal gas tax are unlikely to provide meaningful relief for contractors or consumers.
“A gas tax holiday may sound appealing politically, but it will not significantly reduce diesel or transportation costs for contractors,” said Jeffrey D. Shoaf, chief executive officer of the Associated General Contractors of America. “At the same time, suspending the gas tax would weaken a critical source of long-term infrastructure funding that supports the nation’s roads, bridges, and transportation systems.”
View producer price index data.
