According to the latest Producer Price Index report, the price level of building materials, excluding energy, has declined. Over the past five months, steel mill product prices have consistently declined, reaching the lowest level since March 2021 with a total decrease of 12.5%. Are construction prices stabilizing? Read on!
Overall October had a 1.2% drop in material costs, so most see it as a win. At least in the right direction!
The October construction materials prices report should be cheered by most contractors. 
~ABC Chief Economist Anirban Basu
Gypsum Building Materials
In October, the PPI for gypsum building materials decreased slightly. In the seven months since their last increase in March 2023, gypsum building materials prices have declined by 3.5% (NSA). Prices are 1.4% lower than they were in October 2022.
Steel Mill Products
In October, the price of steel mill products dropped by 2.5% (SA).
Steel is now down 10% from a year ago and appears to be trending down for 2024.
Softwood Lumber
In October, the PPI for softwood lumber experienced a decrease of 2.8% following a 1.3% increase in September (SA). Over the past year, the index has fallen by 12.1% and is now 52.3% lower than the record high it reached in 2021.
Concrete
Following a revised upward increase of 2.1% in September (seasonally adjusted).
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BASE4 | The Fastest and Cheapest Way to Build in 2023
Projects are becoming harder to build for one reason—cost…
Thank you,
Blair Hildahl
BASE4 Principal
608.304.5228
BlairH@base-4.com
