Prices Down for Construction Materials
10/19/2015 | Construction Blog
In a classic example of supply and demand, an increased supply in the construction market has paired with a decreased global demand to drive down the price of construction materials for the second month in a row. The primary culprits appear to be the troubled economies of China, Brazil, and Russia.
The price points for materials fell 1.6% in September; and the year over year cost of construction materials is down 5.3% from this time last year. The only three price increases were in plumbing fixtures, concrete, and crude petroleum. Conversely, energy prices, fabricated metal, iron and steel, softwood lumber, and prepared asphalt are among the categories that took price hits.
It is likely that this trend will continue into the fall as work slows further into the winter months and the already glutted market takes longer to clear. It is also expected that some decisions by the Federal Reserve regarding interest rates could further impact prices in a negative fashion. For those that have the capacity to carry inventory, it may be a good time to stockpile materials at a good price so that they are available when work picks up again in the spring.