{"id":41518,"date":"2023-10-23T07:47:55","date_gmt":"2023-10-23T07:47:55","guid":{"rendered":"https:\/\/www.my-equipment.com\/blog\/?p=41518"},"modified":"2023-10-23T07:47:56","modified_gmt":"2023-10-23T07:47:56","slug":"rising-energy-costs-impact-construction-input-prices","status":"publish","type":"post","link":"https:\/\/www.my-equipment.com\/blog\/2023\/10\/rising-energy-costs-impact-construction-input-prices\/","title":{"rendered":"Rising Energy Costs Impact Construction Input Prices"},"content":{"rendered":"<blockquote>\n<p style=\"text-align: left;\">As energy costs surge the price of construction inputs is on the rise once again. This is a cause of concern for people in the construction industry. This increase is attributed to a few different factors, including rising energy costs and global conflicts that are impacting energy production.<\/p>\n<\/blockquote>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/rising-energy-costs-impact-construction-input-prices\/#Recent_Data_on_Construction_Input_Prices\" >Recent Data on Construction Input Prices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/rising-energy-costs-impact-construction-input-prices\/#The_Impact_of_Energy_Prices\" >The Impact of Energy Prices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/rising-energy-costs-impact-construction-input-prices\/#Geopolitics_and_Energy_Prices\" >Geopolitics and Energy Prices<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/rising-energy-costs-impact-construction-input-prices\/#Other_Price_Trends_in_the_Construction_Industry\" >Other Price Trends in the Construction Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/rising-energy-costs-impact-construction-input-prices\/#Labor_Shortages_as_a_Consistent_Challenge\" >Labor Shortages as a Consistent Challenge<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/rising-energy-costs-impact-construction-input-prices\/#Government_Response_and_Industry_Concerns\" >Government Response and Industry Concerns<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Recent_Data_on_Construction_Input_Prices\"><\/span><b>Recent Data on Construction Input Prices<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>According to an analysis conducted by the Associated Builders and Contractors (ABC) using data from the U.S. Bureau of Labor Statistics Producer Price Index, construction input prices increased by 0.2 percent in September. This surge is mostly driven by the escalating costs of energy-related materials.<\/p>\n<p>Nonresidential construction input prices have risen by 0.6% compared to a year ago, and the overall construction input prices are 0.3 percent higher. This comes after the first increase in six months, following a substantial 1.5% material price hike in August.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_Impact_of_Energy_Prices\"><\/span><b>The Impact of Energy Prices<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The jump in energy costs plays a central role in the recent price increase. All three energy subcategories experienced price hikes in September. While natural gas saw a modest 0.1% increase, unprocessed energy sources and crude petroleum witnessed whopping increases of 10.1% and 7.5%, respectively.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Geopolitics_and_Energy_Prices\"><\/span><b>Geopolitics and Energy Prices<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>According to Anirban Basu, ABC&#8217;s chief economist, inflationary forces in the economy are now influenced more by structural labor market dynamics and geopolitics than by supply chain issues. The potential for armed conflicts in energy producing regions around the world is a wildcard that could further impact petroleum prices. These situations are putting more and more pressure on construction contractors in the coming months.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Other_Price_Trends_in_the_Construction_Industry\"><\/span><b>Other Price Trends in the Construction Industry<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While energy prices have risen quite a bit, most other <strong><a href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/megaproject-development-creates-material-shortages-in-life-sciences-construction\/\">construction equipment and materials<\/a><\/strong> remained steady in September. In fact there were some decreases that were observed in the iron and steel categories.<\/p>\n<p>The iron and steel prices were seen declining by 2.4% from August, and steel mill products fell by 3.7% month over month.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Labor_Shortages_as_a_Consistent_Challenge\"><\/span><b>Labor Shortages as a Consistent Challenge<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Supply chain disruptions, which were a big, big factor in price increases previously, are no longer the primary driver. Basu points out that labor shortages continue to present a lot of challenges to many contractors. But he said that he does not foresee a slowdown in business as a solution to this issue in the near future.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Government_Response_and_Industry_Concerns\"><\/span><b>Government Response and Industry Concerns<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While there have been promises of assistance for consumers in response to the increase in power and gas prices, not everyone in the industry has received similar support. This rising energy cost is yet another challenge that construction businesses have to contend with. Of course they are also dealing with the National Insurance hike, removal of the red diesel rebate, and existing material cost increases.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As energy costs surge the price of construction inputs is on the rise once again. &hellip; <a href=\"https:\/\/www.my-equipment.com\/blog\/2023\/10\/rising-energy-costs-impact-construction-input-prices\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Rising Energy Costs Impact Construction Input Prices&#8221;<\/span><\/a><\/p>\n","protected":false},"author":3,"featured_media":41526,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[901],"tags":[311],"class_list":["post-41518","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction-career-outlook","tag-construction-businesses"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rising Energy Costs Impact Construction Input Prices - Heavy Equipment Market Insights | News | Guides &amp; 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