It’s becoming more expensive each month for builders to absorb cost increases for many construction materials, and that’s if they can get those products delivered on time. 

The producer price index for nonresidential construction inputs increased nearly 12% in September 2026 compared to the same time a year prior, according to a data analysis from the Associated General Contractors of America. That’s the largest increase in four years. 

“Construction firms are being hit by a double whammy of tariff- and war-induced materials cost increases as higher metals and fuel costs permeate an ever-wider range of prices,” said Ken Simonson, the association’s chief economist, in a statement. “Making matters worse, lead times for key steel components have lengthened, making it harder for contractors to keep projects on schedule.” 

Petroleum products continue to see the highest cost increases. The cost of diesel fuel is up 115.2% compared to a year ago, while liquid asphalt is up 17.7% year-over-year. The cost of shipping by truck is up 19.3% as freight companies pass on growing fuel costs. 

Metal prices overall are up 50% over the past year. Builders also are encountering extreme difficulty with steel availability as well as pricing. Contractors report beams and other steel shapes needed to erect building frames are booked out through the spring of 2027. Some contractors have been told they will only receive a small fraction of the beams they had ordered and that alternative suppliers are refusing orders from new customers.