Dive summary:
- Prices for materials including plywood and lumber and all types of metal mill shapes rose last month, and diesel fuel was up substantially for the second month in a row, according to the Associated General Contractors of America analysis of federal data released last week.
- Increases were serious enough that the group's chief economist, Ken Simonson, used dramatic language, saying, "The latest surge in materials costs may push subcontractors and some general contractors into insolvency, following years of razor-thin margins and shrunken levels of activity."
- Diesel rose 5.7% after going up 8.7% in August, copper and brass mill shapes rose 3.6%, aluminum mill shapes and lumber and plywood each rose 1.1%, and steel mill products increased 1.0%. The overall increase from September 2011 was 1.7%, but Simonson called that "deceptively mild" and cited contractors' near inability to raise their margins because there is not enough work to be done.
From the article:
Price spikes for several key construction materials in September threaten to push contractors out of business, according to an analysis of federal figures released today by the Associated General Contractors of America. ...
