b'Tariff concerns loom over construction input prices Potential trade policy changes under the incoming Trump administration could raise costs for a wide range of materials, economists say.Dive Brief: Construction input prices ticked up 0.3% inOctober, driven by increased costs across all energy subcategories, according to an analysis by Associated Builders and Contractors. Despite the cost increase, construction input prices remain 0.2% lower than a year ago, and nonresidential construction input prices are down 0.5% in that period. High energy prices drove the increase in construction input prices observed in October, said Anirban Basu, ABC chief economist. While prices for a few other materials, likeContractors have largely benefited from input price concrete and copper products, also rose for thestabilization in 2024. As of October, contractors expect month, overall input prices are lower than theytheir profit margins to expand through the first quarter were one year ago and have fallen 5% sinceof 2025. reaching an all-time high in June 2022. That may change next year, as it remains unclear how Dive Insight:materials prices will react in 2025 due to proposedThe uptick in fuel prices will likely be temporary,tariffs, said Basu. said Ken Simonson, chief economist at theAssociated General Contractors of America.The next administrations trade policy increases However, the broader uncertainty tied to potentialuncertainty regarding construction material costs, said trade policy changes under the incoming TrumpBasu. Beyond the implications of potential tariffs,administration presents a new layer of unpredicta- input prices may rise in the short term if purchasers bility for contractors.rush to import materials prior to the implementation of those policies. A bigger concern is the prospect of across-the-board tariffs that President-elect Trump has said he intends to impose, said Simonson. New or increased tariffs have the potential to raise prices for a wide range of construction inputs, including items produced domestically that compete with imports.By: Sebastian Obando Reporter Future prices for crude oil and copper, typicallyreliable predictors of upcoming producer priceindex shifts, have recently declined. That indicates the potential for a near-term dip in energy input costs, he said. 8'