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Lumber Among Three Big Input Reductions

 

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Softwood lumber is one of the three largest construction input cost reductions year-over-year from December 2021 to December 2022, according to a recent ConstructionDive market report. Citing Producer Price Index data from December 2022, the report noted that overall residential and nonresidential construction input prices fell 2.7% in December from November, the largest monthly drop since April 2020, according to Associated Builders and Contractors (ABC). The construction input reductions were led by steel mill products, softwood lumber and iron and steel, which have seen a 12-month reduction of 29%, 26% and 25%, respectively, through December 2022. Conversely, lumber competitor concrete products had a major construction input cost increase from December ’21 to December ’22, going up 15% during that time. The report also noted that contractors surveyed say they’re currently seeing the longest project backlogs since 2019, according to ABC.

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