Nonresidential Construction Materials Prices Up 3.2% in 2025

On Feb 6, 2026

Nonresidential construction input costs were 3.2% higher in 2025 than the year prior, largely driven by tariffs, according to an Associated Builders and Contractors (ABC) analysis of the latest U.S. Bureau of Labor Statistics’ Producer Price Index data. 

Construction input costs are the expenses incurred by builders and contractors for materials, labor, energy, and other services needed to complete projects. If residential builds are also factored in, the overall increase was 2.8% for 2025. 

Despite the year-over-year increase, construction input costs for nonresidential construction declined by -0.7% for the month of December, the ABC said.  

“Construction materials prices posted a welcome decline in December, yet key inputs are still experiencing rapid escalation,” said ABC Chief Economist Anirban Basu.  

“This is especially true for materials most exposed to tariffs. Copper wire and cable prices, for instance, jumped an incredible 4.6% in December and are up more than 22% year over year, and prices for primary nonferrous metals are up nearly 62% over the past 12 months,” he said. 

Energy prices increased in December in two of three categories: Natural gas and unprocessed energy materials prices were up 34.8% and 5.5%, respectively, while crude petroleum prices were down 2.7% in December. On a year-over-year basis, natural gas increased 8.8% in 2025; unprocessed energy materials declined -7.4%; and crude petroleum dropped -14.8%. 

“Prices for commodities less exposed to tariffs, like asphalt or crushed stone, will likely remain tame in the coming months due to soft demand for construction services,” Basu said. “While that may limit increases in overall materials prices, trade policy will continue to put upward pressure on certain materials.” 

The higher costs have not significantly dimmed contractor optimism, Basu said. In fact, 7 in 10 ABC members expect their profit margins to remain stable or grow over the next two quarters, according to ABC’s Construction Confidence Index. 

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