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Construction input costs rise 7.1% amid material and labor price hikes
ColoradoBiz Staff //August 13, 2026//
Photo courtesy of Robby Brown + Sundt Construction.
Photo courtesy of Robby Brown + Sundt Construction.
Construction input costs rise 7.1% amid material and labor price hikes
ColoradoBiz Staff //August 13, 2026//
In Brief:
- Construction input costs rose 7.1% year-over-year
- Liquid asphalt prices increased 45.2%
- Construction wages grew 5.2%, outpacing private sector
- Ken Simonson warns of potential cutbacks without relief
Construction input costs rose 7.1% from July 2025 to July 2026 as prices increased for fuel, metals and other materials, according to an Associated General Contractors of America analysis of federal data.
Liquid asphalt prices increased 45.2% over the year, while diesel fuel prices rose 44.2%. Prices increased 40.5% for aluminum mill shapes, 22.5% for steel mill products and 18.4% for copper and brass mill shapes.
Lumber and plywood prices climbed 9.9%, the largest increase since March 2022. Paving mixtures and blocks rose 6.6%, a three-year high, while construction plastics increased 5%, the most since January 2023.
Construction wages also grew faster than wages across the private sector. Average hourly earnings for production and nonsupervisory construction employees rose 5.2% over the year, compared with 3.2% for all private-sector workers.
“Construction firms are being hit with outsized cost increases for a host of materials and also labor,” said Ken Simonson, the association’s chief economist. “Unless there is relief from tariffs or additional funding for highway and transit projects, both private and public construction work face cutbacks.”
The association called for lower, more stable tariffs on construction materials and passage of a long-term federal highway and transit funding bill.
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