IHS Markit and the Procurement Executives Group is out with a new study showing that construction costs in July were up again, a trend that has been consistent going back to September of 2016.
One of the most notable increases is coming in pipe and tube prices, a trend that is expected to continue for the rest of the year.
According to IHS Markit’s Engineering and Construction Cost Index, the industry costs are not confined to just the rising price of equipment and supplies, but also labor.
Salaries and wages, which have been on the up side for some 13 months now, rose once again in July. The IHS Markit study also charts a particular increase in wages for welders and electrical engineers.
In a statement, John Anton, the director of pricing and purchasing for IHS, said the “pricing environment for materials and equipment is made worse by uncertain policy duration, potential company exceptions, country exemptions, and the combination of tariffs and quotas.”
The IHS Index is spirited by data provided regularly from engineering, procurement, and construction companies across the country.
By Garry Boulard
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