Construction material costs jump 2.9% in January on metal price spikes
Construction material costs surged 2.9% in January compared to the same month last year, driven by extreme increases in aluminum, steel and copper prices, according to Associated General Contractors of America analysis of Bureau of Labor Statistics data. Construction spending dropped 0.4% from December 2024 to December 2025, creating a squeeze where material costs are rising while overall market activity declines.
The price jumps hit subcontractors’ margins directly, forcing difficult choices between absorbing costs or passing increases to clients in a softer market. Subcontractors should review existing contracts for price escalation clauses and consider renegotiating material delivery schedules to lock in current pricing where possible.
