VIRGINIA (April 9, 2021) — A recent report from the Associated General Contractors of America (AGC) reveals that record-high prices and supply issues for materials are causing hardships for contractors on nonresidential projects. The association has issued a statement urging President Biden to put a stop to tariffs on imports to ease the issue.
“Today’s producer price index report documents just some of challenges contractors are experiencing with fast-rising materials costs, lengthening or uncertain delivery times, and rationing of key inputs,” said Ken Simonson, AGC chief economist. “These problems threaten to drive up the cost and completion time for many vital projects and potentially set back the recovery in construction employment.”
While the pandemic has played a part in the rising costs, Simonson suggested that federal policies such as tariffs and quotas on lumber and steel are contributing to the prices spikes and shortages.
“The Biden administration must address soaring lumber and steel costs and broader supply chain woes with the same energy they are putting into dealing with shortages of automotive microchips,” said Stephen E. Sandherr, AGC chief executive officer. “Without tariff relief and other measures, construction employers will have little ability to invest in new equipment and hire new employees.”
Read more of the report at agc.org.