Construction business owners note that input prices increased 0.2% in September, mainly due to rising energy costs. This follows a 1.5% materials price increase in August, the first in six months.

While the increase may seem small, it could significantly impact your bottom line, especially if you’re already struggling with rising costs in other areas, such as labor and equipment.
In this blog post, we’ll take a closer look at the latest construction input price data and offer some tips for managing these rising costs in your business.

What’s driving the increase in construction input prices?

The increase in construction input prices in September was mainly due to rising energy costs. Prices increased in all three energy subcategories: crude petroleum, unprocessed energy materials, and natural gas.

What impact is the increase in construction input prices having on contractors?

The increase in construction input prices is putting pressure on contractors’ margins. Many contractors are already struggling to find and retain workers, and the rising cost of materials makes it even more difficult to profit.

What can construction business owners do to manage rising costs?

There are a few things that construction business owners can do to manage rising costs:
  • Shop around for the best prices on materials. There are often multiple suppliers for the same materials, so comparing prices before purchasing is essential.
  • Negotiate with suppliers. You can negotiate lower prices if you have a good relationship with your suppliers.
  • Lock in prices in advance. If you know that you’ll need a specific material in the future, you can lock in a price with your supplier. This can help to protect you from future price increases.
  • Be efficient with your materials. Make sure that you’re using your materials efficiently and avoiding waste. This can reduce your overall costs.


The increase in construction input prices is a challenge for contractors, but there are steps that you can take to manage these rising costs in your business. By shopping around for the best prices, negotiating with suppliers, locking in prices in advance, and being efficient with your materials, you can minimize the impact of these rising costs on your bottom line.

Additional tips and advice:

  • Consider using alternative materials. If the price of a particular material is rising, consider using an alternative material. For example, if lumber prices rise, consider using concrete or steel.
  • Talk to your customers. Be upfront with your customers about the rising cost of materials and how it may impact the price of their project.
  • Get creative with your project planning. There may be ways to reduce the needed materials or use more efficient construction methods.
By following these tips, you can manage the rising cost of construction input prices and protect your bottom line.