BISNOW Article

Fear Of The Steel Tariff Is Compounding Already-Escalating Materials Pricing

 

•  The price for steel drywall studs in the NE has increased 30%.

•  Hot rolled steel futures increased 30%.

•  Suppliers are bucking the traditional practice of honoring price quotes for a set period, and are not guaranteeing pricing until they have an order in place.

•  “Suppliers and fabricators are hiking pricing for fear of how the tariff will impact them.

•  “Cost escalations in the industry are running at twice the rate measured by consumer price indexing.

•  Pricing of ceiling suspension system products rose 11%.

•  Steel framing saw a 10% price increase, and boosted prices on all steel products a minimum of 10%.

•  Long-term, the tariff could slow, construction projects across the country.

•  Higher steel prices are not affecting projects already underway, but are speeding up timelines. For projects undergoing concept planning, suppliers are trying to lock in as many orders on their materials inventory as possible.

•  Subcontractors are particularly concerned about the tariff because they negotiate their pricing with a general contractor months before a project breaks ground.

•  Construction costs were already rising across the country thanks to a combination of higher material costs and a lack of skilled construction labor.