February 2025 — Construction Material Costs, Impact of Tariffs, & AI
Tariff Turmoil: How Trade Policies Are Driving Up Construction Costs
Material costs are climbing once again, and at the heart of the issue is the return of steel and aluminum tariffs. With the second Trump administration reintroducing trade restrictions, contractors are racing to purchase materials before tariffs drive prices even higher. The result? A 1.4% jump in construction input costs—the largest increase in two years. The fear of rising tariffs has created a panic-buying effect, straining supply chains and making material procurement more expensive and unpredictable. Contractors working under fixed-price contracts will feel the squeeze the most, as escalating costs threaten already thin profit margins. Industry leaders warn that without strategic procurement planning and contract protections, firms could find themselves paying far more than anticipated for essential materials.
Continue reading this article.
The Rise of AI & Automation in Construction
The construction industry is embracing a new era of automation, driven by modular robotics like Concert, a groundbreaking innovation designed to tackle labor shortages and jobsite inefficiencies. Unlike single-task robots of the past, Concert’s adaptable design allows it to perform multiple construction tasks—from drilling and sanding to material transport—helping contractors enhance productivity and reduce reliance on an increasingly strained workforce. While automation has long been a challenge in construction due to jobsite unpredictability, recent advancements in AI, robotics, and sensor technology are making it possible for machines to work alongside humans rather than replace them. Companies that integrate these technologies will not only improve safety and efficiency but also attract a new generation of tech-savvy workers who see construction as a forward-thinking industry.
Continue reading this article.
Steel, Aluminum, and Supply Chain Strain: What’s Next for Material Costs?
With material costs already on the rise, tariff fears and supply chain disruptions are creating a perfect storm for construction pricing. The reintroduction of tariffs on steel and aluminum has caused a ripple effect across the industry, forcing contractors to make tough decisions about when, how, and at what price to source materials. For contractors locked into long-term projects, the volatility of material costs presents a major risk. Escalation clauses in contracts have become an essential tool, allowing for price adjustments as market conditions change. At the same time, some firms are turning to alternative materials and construction methods to hedge against rising costs, ensuring that projects remain profitable despite the uncertainty.
Continue reading this article.
The Construction Conferences You Can’t Afford to Miss in 2025
Staying competitive in construction isn’t just about managing job sites—it’s about staying ahead of industry trends, emerging technology, and regulatory changes. The right conferences provide direct access to the insights, strategies, and connections needed to future-proof your business. With AI, sustainability, and workforce development reshaping the industry, 2025’s top events will focus on automation, risk management, financial strategy, and leadership.
Continue reading this article.
Conclusion
The construction industry isn’t just facing another challenging year—it’s standing at a crossroads. Tariffs, material costs, and labor shortages are testing the resilience of contractors nationwide, while AI and automation are reshaping job sites faster than many realize. The companies that succeed in 2025 won’t be the ones waiting for stability—they’ll be the ones embracing change, proactively managing risk, and staying ahead of the curve. We've seen this before. When prices spike, when supply chains tighten, when projects stall—it’s those who adapt first that come out ahead. Contractors who take decisive action now—renegotiating contracts, securing materials, integrating automation, and leveraging the right partnerships—will set themselves apart in an industry where margins are tighter and competition is fiercer than ever. But the biggest risk isn’t rising costs. It’s inaction. At Paragon Construction Consulting, we’ve built our reputation by stepping into complex, high-stakes projects and bringing predictability back to the table. Whether it’s guiding developers through financial uncertainty, mitigating tariff risks, or ensuring that stalled projects reach the finish line, our job isn’t just to solve problems—it’s to prevent them in the first place. The road ahead will be won by those who plan smarter, build stronger, and lead with confidence. If you’re waiting for the industry to stabilize before taking action, you’re already behind. The future belongs to those who see the opportunity in the challenge—who move when others hesitate.
Jeff Hall
President & CEO
Online
Get in Touch
Commodity
12 Month % Change
1 Month % Change
Softwood Lumber
9.5
-1.8
Hardwood Lumber
3.8
1.0
General Millworks
2.4
0.0
Soft Plywood Products
-11.8
-0.5
Hot Rolled Steel
2.8
10.9
Copper Wire & Cable
7.9
0.7
Power Wire & Cable
0.3
-0.9
Builder's Hardware
1.8
0.0
Plumbing Fixtures
2.0
0.2
Furnaces and Heaters
0.2
0.0
Sheet Metal Products
0.4
0.3
Electrical Lighting Fixtures
4.1
0.0
Nails
-4.3
-0.3
Major Appliances
-1.3
0.4
Ready-Mix Concrete
4.1
1.6
Asphalt Roofing & Siding
1.7
-0.2
Gypsum Products
5.5
-0.1
Insulation
7.3
0.5
Can La Quinta’s Luxury Resort Finally Move Forward?
After 20 years of delays, La Quinta’s SilverRock resort may finally see progress. Following a developer bankruptcy and $154M in debt, the city has stepped in with an $11M loan to stabilize the project and attract a new buyer. With developers showing interest, the next few months are critical. Luxury projects demand expert execution, and at Paragon Construction Consulting, we know what it takes to turn stalled developments into success stories.
Continue reading this article.
20-City Average Cost Indexes, Wages, Prices
ENR publishes both a Construction Cost Index and Building Cost index that reports the average national price by surveying 20 major cities across the United States. These figures report the national average change of cost over the last month.
CONCRETE BLOCK
+2.0%
READY MIX CONCRETE
+0.5%
ASPHALT PAVING
0.0%
PORTLAND CEMENT
–0.1%
ALUMINIUM SHEET
+2.8%
REINFORCING BARS
+0.1%
WIDE FLANGE
+6.6%
STAINLESS-STEEL SHEET
+9.6%
CORRUGATED-STEEL PIPE
+5.3%
DUCTILE-IRON PIPE
–2.4%
PVC WATER PIPE
–9.6%
REINFORCED CONCRETE PIPE
–1.3%
GYPSUM WALLBOARD
+2.0%
PARTICLE BOARD
+1.9%
PLYWOOD
–0.3%
LUMBER
–3.6%
Sources
Paragon compiles the latest and most accurate information. It’s worth noting, some sources release data more or less frequently.
Want the latest information on construction materials?
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Want the latest information on construction materials?
Subscribe to the Paragon Post
Want the latest information on construction materials?
Subscribe to the Paragon Post
Tariff Turmoil: How Trade Policies Are Driving Up Construction Costs
Material costs are climbing once again, and at the heart of the issue is the return of steel and aluminum tariffs. With the second Trump administration reintroducing trade restrictions, contractors are racing to purchase materials before tariffs drive prices even higher. The result? A 1.4% jump in construction input costs—the largest increase in two years. The fear of rising tariffs has created a panic-buying effect, straining supply chains and making material procurement more expensive and unpredictable. Contractors working under fixed-price contracts will feel the squeeze the most, as escalating costs threaten already thin profit margins. Industry leaders warn that without strategic procurement planning and contract protections, firms could find themselves paying far more than anticipated for essential materials.
Continue reading this article.
The Rise of AI & Automation in Construction
The construction industry is embracing a new era of automation, driven by modular robotics like Concert, a groundbreaking innovation designed to tackle labor shortages and jobsite inefficiencies. Unlike single-task robots of the past, Concert’s adaptable design allows it to perform multiple construction tasks—from drilling and sanding to material transport—helping contractors enhance productivity and reduce reliance on an increasingly strained workforce. While automation has long been a challenge in construction due to jobsite unpredictability, recent advancements in AI, robotics, and sensor technology are making it possible for machines to work alongside humans rather than replace them. Companies that integrate these technologies will not only improve safety and efficiency but also attract a new generation of tech-savvy workers who see construction as a forward-thinking industry.
Continue reading this article.
Steel, Aluminum, and Supply Chain Strain: What’s Next for Material Costs?
With material costs already on the rise, tariff fears and supply chain disruptions are creating a perfect storm for construction pricing. The reintroduction of tariffs on steel and aluminum has caused a ripple effect across the industry, forcing contractors to make tough decisions about when, how, and at what price to source materials. For contractors locked into long-term projects, the volatility of material costs presents a major risk. Escalation clauses in contracts have become an essential tool, allowing for price adjustments as market conditions change. At the same time, some firms are turning to alternative materials and construction methods to hedge against rising costs, ensuring that projects remain profitable despite the uncertainty.
Continue reading this article.
The Construction Conferences You Can’t Afford to Miss in 2025
Staying competitive in construction isn’t just about managing job sites—it’s about staying ahead of industry trends, emerging technology, and regulatory changes. The right conferences provide direct access to the insights, strategies, and connections needed to future-proof your business. With AI, sustainability, and workforce development reshaping the industry, 2025’s top events will focus on automation, risk management, financial strategy, and leadership.
Continue reading this article.
Conclusion
The construction industry isn’t just facing another challenging year—it’s standing at a crossroads. Tariffs, material costs, and labor shortages are testing the resilience of contractors nationwide, while AI and automation are reshaping job sites faster than many realize. The companies that succeed in 2025 won’t be the ones waiting for stability—they’ll be the ones embracing change, proactively managing risk, and staying ahead of the curve. We've seen this before. When prices spike, when supply chains tighten, when projects stall—it’s those who adapt first that come out ahead. Contractors who take decisive action now—renegotiating contracts, securing materials, integrating automation, and leveraging the right partnerships—will set themselves apart in an industry where margins are tighter and competition is fiercer than ever. But the biggest risk isn’t rising costs. It’s inaction. At Paragon Construction Consulting, we’ve built our reputation by stepping into complex, high-stakes projects and bringing predictability back to the table. Whether it’s guiding developers through financial uncertainty, mitigating tariff risks, or ensuring that stalled projects reach the finish line, our job isn’t just to solve problems—it’s to prevent them in the first place. The road ahead will be won by those who plan smarter, build stronger, and lead with confidence. If you’re waiting for the industry to stabilize before taking action, you’re already behind. The future belongs to those who see the opportunity in the challenge—who move when others hesitate.
Jeff Hall
President & CEO
Online
Online
Get in Touch
Get in Touch
Commodity
12 Month % Change
1 Month % Change
Softwood Lumber
9.5
-1.8
Hardwood Lumber
3.8
1.0
General Millworks
2.4
0.0
Soft Plywood Products
-11.8
-0.5
Hot Rolled Steel
2.8
10.9
Copper Wire & Cable
7.9
0.7
Power Wire & Cable
0.3
-0.9
Builder's Hardware
1.8
0.0
Plumbing Fixtures
2.0
0.2
Furnaces and Heaters
0.2
0.0
Sheet Metal Products
0.4
0.3
Electrical Lighting Fixtures
4.1
0.0
Nails
-4.3
-0.3
Major Appliances
-1.3
0.4
Ready-Mix Concrete
4.1
1.6
Asphalt Roofing & Siding
1.7
-0.2
Gypsum Products
5.5
-0.1
Insulation
7.3
0.5
Can La Quinta’s Luxury Resort Finally Move Forward?
After 20 years of delays, La Quinta’s SilverRock resort may finally see progress. Following a developer bankruptcy and $154M in debt, the city has stepped in with an $11M loan to stabilize the project and attract a new buyer. With developers showing interest, the next few months are critical. Luxury projects demand expert execution, and at Paragon Construction Consulting, we know what it takes to turn stalled developments into success stories.
Continue reading this article.
20-City Average Cost Indexes, Wages, Prices
ENR publishes both a Construction Cost Index and Building Cost index that reports the average national price by surveying 20 major cities across the United States. These figures report the national average change of cost over the last month.
CONCRETE BLOCK
+2.0%
READY MIX CONCRETE
+0.5%
ASPHALT PAVING
0.0%
PORTLAND CEMENT
–0.1%
ALUMINIUM SHEET
+2.8%
REINFORCING BARS
+0.1%
WIDE FLANGE
+6.6%
STAINLESS-STEEL SHEET
+9.6%
CORRUGATED-STEEL PIPE
+5.3%
DUCTILE-IRON PIPE
–2.4%
PVC WATER PIPE
–9.6%
REINFORCED CONCRETE PIPE
–1.3%
GYPSUM WALLBOARD
+2.0%
PARTICLE BOARD
+1.9%
PLYWOOD
–0.3%
LUMBER
–3.6%
Sources
https://www.enr.com/articles/60154-clayco-dives-deep-into-data-center-construction
https://www.maslon.com/how-the-new-administration-may-impact-the-construction-industry
Paragon compiles the latest and most accurate information. It’s worth noting, some sources release data more or less frequently.
Sources
Paragon compiles the latest and most accurate information. It’s worth noting, some sources release data more or less frequently.
February 2025 — Construction Material Costs, Impact of Tariffs, & AI
Tariff Turmoil: How Trade Policies Are Driving Up Construction Costs
Material costs are climbing once again, and at the heart of the issue is the return of steel and aluminum tariffs. With the second Trump administration reintroducing trade restrictions, contractors are racing to purchase materials before tariffs drive prices even higher. The result? A 1.4% jump in construction input costs—the largest increase in two years. The fear of rising tariffs has created a panic-buying effect, straining supply chains and making material procurement more expensive and unpredictable. Contractors working under fixed-price contracts will feel the squeeze the most, as escalating costs threaten already thin profit margins. Industry leaders warn that without strategic procurement planning and contract protections, firms could find themselves paying far more than anticipated for essential materials.
The Rise of AI & Automation in Construction
The construction industry is embracing a new era of automation, driven by modular robotics like Concert, a groundbreaking innovation designed to tackle labor shortages and jobsite inefficiencies. Unlike single-task robots of the past, Concert’s adaptable design allows it to perform multiple construction tasks—from drilling and sanding to material transport—helping contractors enhance productivity and reduce reliance on an increasingly strained workforce. While automation has long been a challenge in construction due to jobsite unpredictability, recent advancements in AI, robotics, and sensor technology are making it possible for machines to work alongside humans rather than replace them. Companies that integrate these technologies will not only improve safety and efficiency but also attract a new generation of tech-savvy workers who see construction as a forward-thinking industry.
Steel, Aluminum, and Supply Chain Strain: What’s Next for Material Costs?
With material costs already on the rise, tariff fears and supply chain disruptions are creating a perfect storm for construction pricing. The reintroduction of tariffs on steel and aluminum has caused a ripple effect across the industry, forcing contractors to make tough decisions about when, how, and at what price to source materials. For contractors locked into long-term projects, the volatility of material costs presents a major risk. Escalation clauses in contracts have become an essential tool, allowing for price adjustments as market conditions change. At the same time, some firms are turning to alternative materials and construction methods to hedge against rising costs, ensuring that projects remain profitable despite the uncertainty.
The Construction Conferences You Can’t Afford to Miss in 2025
Staying competitive in construction isn’t just about managing job sites—it’s about staying ahead of industry trends, emerging technology, and regulatory changes. The right conferences provide direct access to the insights, strategies, and connections needed to future-proof your business. With AI, sustainability, and workforce development reshaping the industry, 2025’s top events will focus on automation, risk management, financial strategy, and leadership.
Sources
https://www.enr.com/articles/60154-clayco-dives-deep-into-data-center-construction
https://www.maslon.com/how-the-new-administration-may-impact-the-construction-industry
Paragon compiles the latest and most accurate information. It’s worth noting, some sources release data more or less frequently.
Sources
Paragon compiles the latest and most accurate information. It’s worth noting, some sources release data more or less frequently.
Commodity
12 Month % Change
1 Month % Change
Softwood Lumber
9.5
-1.8
Hardwood Lumber
3.8
1.0
General Millworks
2.4
0.0
Soft Plywood Products
-11.8
-0.5
Hot Rolled Steel
2.8
10.9
Copper Wire & Cable
7.9
0.7
Power Wire & Cable
0.3
-0.9
Builder's Hardware
1.8
0.0
Plumbing Fixtures
2.0
0.2
Furnaces and Heaters
0.2
0.0
Sheet Metal Products
0.4
0.3
Electrical Lighting Fixtures
4.1
0.0
Nails
-4.3
-0.3
Major Appliances
-1.3
0.4
Ready-Mix Concrete
4.1
1.6
Asphalt Roofing & Siding
1.7
-0.2
Gypsum Products
5.5
-0.1
Insulation
7.3
0.5
Can La Quinta’s Luxury Resort Finally Move Forward?
After 20 years of delays, La Quinta’s SilverRock resort may finally see progress. Following a developer bankruptcy and $154M in debt, the city has stepped in with an $11M loan to stabilize the project and attract a new buyer. With developers showing interest, the next few months are critical. Luxury projects demand expert execution, and at Paragon Construction Consulting, we know what it takes to turn stalled developments into success stories.
Continue reading.
20-City Average Cost Indexes, Wages, Prices
ENR publishes both a Construction Cost Index and Building Cost index that reports the average national price by surveying 20 major cities across the United States. These figures report the national average change of cost over the last month.
CONCRETE BLOCK
+2.0%
READY MIX CONCRETE
+0.5%
ASPHALT PAVING
0.0%
PORTLAND CEMENT
–0.1%
ALUMINIUM SHEET
+2.8%
REINFORCING BARS
+0.1%
WIDE FLANGE
+6.6%
STAINLESS-STEEL SHEET
+9.6%
CORRUGATED STEEL PIPE
+5.3%
DUCTILE-IRON PIPE
–2.4%
PVC WATER PIPE
–9.6%
REINFORCED CONCRETE PIPE
–1.3%
GYPSUM WALLBOARD
+2.0%
PARTICLE BOARD
+1.9%
PLYWOOD
–0.3%
LUMBER
–3.6%
February 2025 — Construction Material Costs, Impact of Tariffs, & AI
Conclusion
The construction industry isn’t just facing another challenging year—it’s standing at a crossroads. Tariffs, material costs, and labor shortages are testing the resilience of contractors nationwide, while AI and automation are reshaping job sites faster than many realize. The companies that succeed in 2025 won’t be the ones waiting for stability—they’ll be the ones embracing change, proactively managing risk, and staying ahead of the curve. We've seen this before. When prices spike, when supply chains tighten, when projects stall—it’s those who adapt first that come out ahead. Contractors who take decisive action now—renegotiating contracts, securing materials, integrating automation, and leveraging the right partnerships—will set themselves apart in an industry where margins are tighter and competition is fiercer than ever. But the biggest risk isn’t rising costs. It’s inaction. At Paragon Construction Consulting, we’ve built our reputation by stepping into complex, high-stakes projects and bringing predictability back to the table. Whether it’s guiding developers through financial uncertainty, mitigating tariff risks, or ensuring that stalled projects reach the finish line, our job isn’t just to solve problems—it’s to prevent them in the first place. The road ahead will be won by those who plan smarter, build stronger, and lead with confidence. If you’re waiting for the industry to stabilize before taking action, you’re already behind. The future belongs to those who see the opportunity in the challenge—who move when others hesitate.
Jeff Hall
President & CEO
Jeff Hall
President & CEO
Online
Get in Touch