Even as construction jobsites reopen and workers return, the ongoing COVID-19 pandemic is continuing to negatively impact the architectural and construction markets. In a prepared statement chief economist Anirban Basu, of the Associated Builders and Contractors (ABC), a national construction industry trade association said, “For many contractors, lack of demand for their services has emerged as the leading source of concern due to the COVID-19 pandemic, followed closely behind by a fear of inflation and a potential increase in materials prices. June’s PPI [U.S. Bureau of Labor Statistics’ Producer Price Index] data indicate that they are right to be concerned.” Further confirmation is found in the Turner Building Cost Index, which calculates costs in the U.S. nonresidential building construction markets, which is reporting that for the first time since 2010, their index has a reduced value. In a press statement, Attilio Rivetti, the Turner vice president responsible for compiling the Cost Index, said Trade contractor competition has increased in many areas as they work to secure backlog due to uncertainty, they have about future opportunities.”
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Construction costs fall as material prices continue to rise