Construction Association Urges Mr Biden to End Section 232 Tarrifs
US’s Construction Association has called on US President Mr Joe Biden to immediately end tariffs and quotas on steel, aluminum, and lumber as first step to easing pressure on construction costs and supply chain bottlenecks. According to an analysis by the Associated General Contractors of America of government data, the cost of goods and services used in construction climbed by a record-setting 4.3% in May and 24.3% over the past 12 months, jeopardizing contractors’ solvency and construction workers’ employment. Association’s Chief Economist Mr Ken Simonson said “The increase in producer prices for construction materials over the past year far outstrips contractors’ ability to charge more for projects. That gap means contractors are being hit with huge costs that they did not anticipate and cannot pass on.”
Meanwhile, the producer price index for new nonresidential construction, a measure of what contractors say they would charge to erect five types of nonresidential buildings, rose only 2.8% over the past 12 months, as contractors held their profit expectations down in order to compete for a limited number of new projects.
Items with especially steep price increases over the past year covered a wide range of materials, including products made from wood, steel, metals, plastics, and gypsum.