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W W W. M A I N E B I Z . B I Z 15 A P R I L 1 6 , 2 0 1 8 F O C U S R E A L E S TAT E / C O N S T R U C T I O N / D E S I G N THERE IS A DIFFERENCE THERE IS Because Construction Management Design/Build General Contracting Engineering Fairfield ( 207-453-9311 ) | Portland ( 207-774-6138 ) Freeport High School Sheridan Construction www.sheridancorp.com Construction offi cials said the new tariffs will raise costs for fi rms, many of which are locked into fi xed-price contracts with little ability to charge more for their services. They said funding President Donald Trump's infrastructure plans would be a better way to foster demand for domestic steel and aluminum without harming contractors S O U R C E : Associated General Contractors of Maine onstruction costs escalated in February, driven by price increases for a wide range of building materials, including steel and aluminum, according to an analysis by the Associated General Contractors of America. AGCA offi cials warned that newly imposed tariffs on those metals will create steeper increases that will squeeze budgets for infrastructure, school dis- tricts and commercial projects. "Price increases have accelerated for many con- struction materials in the last two years, with additional increases already announced, and others on the way as soon as tariffs on steel and aluminum take effect," said the association's chief economist, Ken Simonson. "Contractors will be forced to pass these cost increases along in bid prices, but that will mean fewer projects get built. And contractors that are already working on projects for which they have not bought some materials are at risk of absorbing large losses." S TA R T I N G O N F O L L OW I N G PA G E » C PRODUCER PRICE INDEX FEB. 2017 – FEB. 2018 (PERCENT CHANGE) PRODUCER PRICE INDEX FOR INPUTS TO CONSTRUCTION INDUSTRIES (PERCENT CHANGE) 0.6% 1/18–2/18 11.6% aluminum mill shapes 4.4% 2017–2018 4.8% steel mill products 4.2% 2016–2017 10% copper/brass mill shapes 38.5% diesel fuel 13.2% lumber and plywood 8% gypsum products 4.9% plastic constr. products 0.9% 2015–2016 From February 2017 to February 2018, the producer price index rose 11.6% for aluminum mill shapes, 4.8% for steel mill products and 10% for copper and brass mill shapes. Metal products used in construction include steel bars (rebar) to reinforce building and highway concrete; piles and beams (structural steel) in buildings; steel studs to support wallboard in houses and buildings; steel and copper pipe; and aluminum window frames, siding and architectural elements. Several other products that are important to construction also had large price increases over the past 12 months: diesel fuel, 38.5% ; lumber and plywood, 13.2% ; gypsum products, 8% ; and plastic construction products, 4.9% . The producer price index for inputs to construction industries — a measure of all goods and services used in construction projects including items consumed by contractors, such as diesel fuel — rose 0.6% in February alone and 4.4% over 12 months. The index increased by 4.2% in 2017 and just 0.9% in 2016. Price increases have accelerated Price increases have accelerated Price increases have accelerated Price increases have accelerated Price increases have accelerated Price increases have accelerated Price increases have accelerated Price increases have accelerated Price increases have accelerated for many construction materials for many construction materials for many construction materials for many construction materials for many construction materials for many construction materials for many construction materials for many construction materials for many construction materials for many construction materials for many construction materials for many construction materials for many construction materials in the last two years. — Ken Simonson Chief economist, Associated General Contractors of America

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