Dive Brief:
- Data-analyst company IHS says that there will likely be local increases in concrete prices, especially on the Gulf Coast, as the industry tried to catch up with demand in the recovery.
- The overall IHS measure of construction costs, called the IHS PEG Engineering and Construction Cost Index (ECCI), was at 53.0 this month, down from July but still showing rising costs.
- The materials and equipment part of the index stood at 53.5—down four points from July—but again, still rising.
Dive Insight:
Charles McCarren, who is a pricing and purchasing analyst at IHS, said, "The cement and ready-mix industries continue to struggle with fallout from the Great Recession and the collapse in construction activity in 2008 and 2009." And on top of that, the Gulf Coast region's demand has outstripped the industry's ability to get back up to speed.