MARKETS
Lumber (Framing Composite)$420 / 1k bd ft
+2.4%
Steel (Rebar, #4)$980 / ton
-1.1%
Concrete (3000 PSI)$145 / yd
+4.5%
Copper (Wire/Pipe)$4.12 / lb
+0.8%
PVC (Pipe Grade)$0.95 / lb
-3.2%
Diesel (On-Hwy)$3.85 / gal
0.0%
Asphalt (Paving)$120 / ton
+1.5%
Drywall (1/2" Regular)$14.50 / sheet
-0.5%
Insulation (R-19)$0.85 / sq ft
+1.2%
Lumber (Framing Composite)$420 / 1k bd ft
+2.4%
Steel (Rebar, #4)$980 / ton
-1.1%
Concrete (3000 PSI)$145 / yd
+4.5%
Copper (Wire/Pipe)$4.12 / lb
+0.8%
PVC (Pipe Grade)$0.95 / lb
-3.2%
Diesel (On-Hwy)$3.85 / gal
0.0%
Asphalt (Paving)$120 / ton
+1.5%
Drywall (1/2" Regular)$14.50 / sheet
-0.5%
Insulation (R-19)$0.85 / sq ft
+1.2%
Lumber (Framing Composite)$420 / 1k bd ft
+2.4%
Steel (Rebar, #4)$980 / ton
-1.1%
Concrete (3000 PSI)$145 / yd
+4.5%
Copper (Wire/Pipe)$4.12 / lb
+0.8%
PVC (Pipe Grade)$0.95 / lb
-3.2%
Diesel (On-Hwy)$3.85 / gal
0.0%
Asphalt (Paving)$120 / ton
+1.5%
Drywall (1/2" Regular)$14.50 / sheet
-0.5%
Insulation (R-19)$0.85 / sq ft
+1.2%
Market Data

2026 Material Price Forecast

Navigating supply chain volatility in the post-inflation economy.

Last Updated: January 28, 2026
M

Marcus Thorne

Chief Product Officer

Reviewed bySarah JenkinsPE

Quick Summary

Material volatility has stabilized since the 2023 peaks, but risk remains in energy-intensive materials. Concrete and Cement are seeing 4-6% price increases due to new EPA kiln regulations. Lumber has returned to pre-pandemic trading ranges ($400-$500/mbf). Steel remains volatile, driven by global scrap recycling demand. Contractors should include Escalation Clauses for any project with a duration longer than 6 months.

Key Facts

  • Energy-intensive materials remain the most volatile segment.
  • Lumber has normalized versus prior peak disruptions.
  • Long-duration bids need explicit escalation protections.

Decision Checklist

  • Apply commodity risk assumptions by material class.
  • Use escalation clauses beyond six-month project windows.
  • Refresh material indexes before final bid submission.

Source context: Commodity trend analysis and contractor pricing-risk controls.

The "Energy Surcharge" Era

While raw material scarcity is over, production costs are rising due to the "Energy Surcharge." Heavy materials (Concrete, Asphalt, Brick, Glass) are incredibly energy-intensive to manufacture.

  • Concrete (+5%): Cement kilns require massive heat. As EPA regulations continually force older, dirty kilns to close, supply constrains while demand from the Infrastructure Bill rises. Expect sand/aggregate shortages to be highly localized but acute.
  • Copper (+12%): Bullish long-term due to "Electrification" demand (EVs, Data Centers, Grid Modernization). If you are an Electrical sub, lock in your wire pricing immediately upon Letter of Intent.
  • Asphalt: Directly correlated to the price of oil (Bitumen). If oil spikes due to geopolitical tension, paving costs move instantly.

The Contract Savior: Escalation Clauses

Do not sign a Fixed Price (Lump Sum) contract for 2027 completion without an escalation mechanism. If the job is longer than 6 months, you are gambling with your profit margin.

Recommended Language: "If the material cost index (ENR BCI) increases by more than 5% between bid date and installation date, the contract sum shall be adjusted accordingly. Conversely, if it drops by 5%, the owner receives a credit."

This "Shared Risk" model is becoming standard in AIA contracts. Owners may resist, but explain that without it, you are forced to add a "Risk Contingency" (fluff) to your bid, artificially inflating the price.

Buying Strategy: "Buy Early, Store Securely"

With interest rates stabilizing, the cost of capital to hold inventory is lower than the risk of a 10% price spike.

Best Practice: Ask for a "Stored Materials" deposit in your Schedule of Values so you can purchase long-lead items (Switchgear, Generators) immediately upon award.