Tariffs still nudging project costs
Tariffs from 2025 are still impacting construction material pricing, keeping renovation budgets above pre‑pandemic norms and leaving contractors little room to absorb further increases. Companies and homeowners are still seeing cost pressure even as annual growth in repair costs eases. ( )
The Associated Builders and Contractors said tariffs pushed construction materials prices up 2.8% in 2025 in an analysis released Jan. 30, 2026. (abc.org) ABC Carolinas reported members experienced at least one commercial or industrial project canceled, rebid, or significantly scaled back after updated steel, aluminum or switchgear quotes exceeded original budgets by 10–15%. (abccarolinas.org) Verisk Analytics’ annual index showed material and labor prices for common home repairs and remodeling rose 2.71% in 2025, slipping below the 2013–2019 pre‑pandemic average annual growth of 2.83%. (scotsmanguide.com) Verisk’s Remodel Index registered nearly a 4% year‑over‑year increase in repair and remodeling costs in the first quarter of 2025, illustrating stronger early‑year pressure before the annual slowdown. (ap.org) Data reported by Construction Dive from ABC analyses put nonresidential construction input prices on an annualized 7.1% pace in January 2026, with tariff‑affected metals cited as a primary driver. (constructiondive.com) ABC Carolinas recommends specific contract and procurement tactics — escalation clauses, tariff‑specific provisions, early procurement and alternative‑material sourcing — as practical measures contractors are using to protect margins. (abccarolinas.org) The Associated General Contractors has compiled tariff resources and is engaging in advocacy to help contractors manage supplier uncertainty and evolving import duties. (agc.org)
