The Daily Dig
Input costs for nonresidential construction moved higher in January, with metals leading the way. The producer price index for materials and services used in nonresidential construction rose 2.9 percent year over year through January, based on federal data analyzed by the Associated General Contractors of America. AGC officials said steep tariffs on imported metals have given domestic producers cover to push prices up.
Aluminum mill shapes jumped 33.0 percent year over year, and steel mill products rose 20.7 percent, the largest annual gains for either material since the supply chain disruptions of early 2022. Copper and brass mill shapes climbed 15.7 percent from a year earlier, with certain imported copper-containing products also subject to a 50 percent tariff. A separate spending report showed total construction outlays slipped 0.4 percent from December 2024 to December 2025, with public construction up 3.4 percent while private segments pulled back.
Snapshot:
Data source / report: Federal producer price index and construction spending reports analyzed by Associated General Contractors of America
Time period: January 2025 to January 2026 (PPI); December 2024 to December 2025 (spending)
Nonresidential construction PPI: Up 2.9%
Aluminum mill shapes: Up 33.0% year over year
Steel mill products: Up 20.7% year over year
Copper and brass mill shapes: Up 15.7% year over year
Tariffs: 50% tariff on imported metals imposed last June; imported copper-containing products also subject to 50% tariff
Trend note: Aluminum and steel indexes have accelerated each month since the tariff was imposed
Total construction spending: Down 0.4% (Dec 2024 to Dec 2025)
Public construction: Up 3.4%; highway and street construction up 0.8%
Private nonresidential: Down 1.8%; manufacturing construction down 11.4%
Private residential: Down 1.3%; single-family down 3.6%; multifamily up 2.9%
Policy context: Current surface transportation legislation expires at the end of September
TheJobWalk Thoughts
Spiking metal costs and softening private demand make this a tough environment to price work heading into bid season. Escalation at these rates forces estimators to shorten price validity windows or build in contingencies that price you out of jobs, while owners push back on the same escalation clauses they accepted two years ago. Manufacturing construction dropping 11.4 percent is the bigger warning sign, that volume is not shifting elsewhere. Public work is holding, but highway growth at 0.8 percent is not enough to offset the pullback. If Congress drags out the surface transportation reauthorization past September, agencies will slow-walk awards until there is budget certainty, compressing the bid calendar right when material costs are still running hot.
