In addition, according to the Associated General Contractors of America’s (AGC) 2022 Construction Hiring and Business Outlook Survey, material costs were listed as a top concern for contractors this year. 

Though prices moderated for some construction materials in December, they still ended the year with large gains. For example, the price index for steel mill products rose 0.2 percent in December, its smallest rise in 15 months, but soared 127.2 percent over 12 months. The index for diesel fuel declined 5.3 percent for December but increased 54.9 percent for the year. Prices for other materials, such as plastic construction products and lumber and plywood, yielded accelerated price hikes in December. 

The Association believes that rising materials prices are threatening to set back a strong outlook of economic recovery in 2022. They’ve urged the Biden administration to reconsider its plans to double tariffs on Canadian lumber and to remove other trade barriers that are driving inflation of key construction materials.