ConstructConnect warns material costs to rise

ConstructConnect said in its Spring 2026 Construction Economy Outlook webcast on May 20 that builders should prepare for higher material costs over the summer, with economists pointing to tariffs, freight volatility and geopolitical disruption as the main drivers. The webcast, hosted with the American Institute of Architects and the Associated General Contractors of America, featured Richard Branch of the AIA, Ken Simonson of AGC and ConstructConnect chief economist Michael Guckes. The warning lands as contractors are already dealing with softer confidence and uneven project demand. It also comes after separate industry reports in April showed rising pressure in metals, fuel and imported inputs. ### Why are economists warning about summer price increases now? Richard Branch, identified by ConstructConnect as the new chief economist at the American Institute of Architects, opened the May 20 webcast and was presented as one of the event’s lead speakers on design activity and the construction forecast. ConstructConnect’s coverage of the event said Branch’s advice to builders was to “bet on a hike in material costs this summer,” tying that view to tariff-policy uncertainty, freight swings and a softer labor backdrop. (constructconnect.registration.goldcast.io) May 20 was the date of the Spring 2026 webcast, according to ConstructConnect’s event page, which said the session would cover issues affecting material and building costs, labor shortages and the broader economy. The program also included AGC chief economist Ken Simonson on construction input pricing and trade policy, and Guckes on ConstructConnect’s project stress index and second-quarter 2026 starts forecast. (constructconnect.registration.goldcast.io) ### Which materials and cost drivers are under the most pressure? ConstructConnect reported in April that aluminum, steel and copper were among the materials seeing the sharpest increases, alongside volatile diesel fuel prices. That report said construction input costs had risen more than 40% since early 2020, with a further 6.2% annual increase heading into 2026. (constructconnect.registration.goldcast.io) Ken Simonson of AGC said in that April report that increases in diesel fuel and key metals had begun even before the start of the Iran war, and that disruptions to oil, natural gas and aluminum supplies from the Middle East were pushing costs higher. The same report said producer prices for aluminum mill shapes had jumped more than 39% over the prior year, steel mill products more than 21%, and copper and brass mill shapes more than 15%. (canada.constructconnect.com) ### How much of this comes back to tariffs and imports? Michael Guckes, writing for ConstructConnect in April 2025, said the U.S. construction industry remains exposed because it relies heavily on imported materials. His report said about 20% of steel consumed in the United States is imported, aluminum dependence runs from 50% to 75% depending on product type, and copper imports account for roughly one-third of total U.S. consumption. (canada.constructconnect.com) That same analysis said even products with stronger domestic supply chains can face upward price pressure when imported supply is disrupted. Guckes wrote that tariffs and geopolitical tensions raise the cost of imported materials and can ripple through the broader construction market, especially for aluminum and copper. (canada.constructconnect.com) ### What does the webcast suggest contractors should watch next? ConstructConnect’s webcast page said the event would address material and building costs, labor shortages and the state of the economy across the United States and Canada. The page lists Paul Hart as moderator and names Branch, Simonson, Christy O’Brien and Guckes as participants. (canada.constructconnect.com) ConstructConnect’s resources page lists the 2025 and 2026 economic outlook webinars among its on-demand materials, and the Goldcast page for the Spring 2026 event hosts the recorded session. Builders looking for the next update can track ConstructConnect’s economics and webinar pages, where the company posts future outlook events and related forecasts. (constructconnect.com) (constructconnect.registration.goldcast.io)