According to the latest figures from the Associated General Contractors of America, “nearly every material used by contractors rose in price” last month.
The AGC said the increased materials costs have intensified pressure on the industry as bid prices have remained flat.
And there is little optimism that a recovery is in the works.
“Bad though these numbers are, there is worse to come,” said AGC Chief Economist Ken Simonson. “With contractors unable to pass along the increases in the price of finished buildings, many firms could be pushed out of business.”
Simonson also noted that suppliers have reported further increases in the costs of copper, steel and diesel fuel since the data was compiled.
Construction materials costs rose 0.9-percent in December and 5.4-percent in 2010, while bid prices remained flat over both periods.