It seems as if every year the price of material increases. Not surprisingly, these increases have one raw material cost in common, the cost per barrel of crude oil. With oil prices at $37 dollars a barrel and gas prices at the lowest seen in years, how is this affecting the material cost in KC?
Here’s what local KC area suppliers and subcontractors are saying:
We should see a slight increase in the price of lumber this spring, but most likely will fall back down this winter.
Per several subcontractors, copper is not anticipating a price increase at this time.
With oil prices down, the cost of asphalt has dropped from this time last year. If the cost of oil continues to stay at today’s market cost, asphalt prices should continue to level out. One supplier did note that they anticipate a slight increase as is usually seen in the summer months.
Steel costs have been level the past 60 days and suppliers anticipate it will remain this way. It was mentioned that an increase in decking would probably occur in the later spring / summer months.
And increase in concrete prices is not anticipated at this time, however a slight increase during the late spring /summer months is probable.
Masonry has noted a 5% increase this year over last.
In looking at the current construction industry boom and past trends, it seems as if we should expect more material cost increases as more commercial and multifamily projects spring up because of lower oil prices.