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Rising Construction Aggregate Prices Impact U.S. Construction Industry

2024-07-24 23:05:03.955000

The construction industry in the United States is facing challenges due to rising costs caused by inflation. Construction aggregate prices in Alabama have increased by 23.3%, ranking 14th in the country. This increase in prices is impacting construction projects and adding to the overall cost of construction. Rising costs of construction materials, including aggregates, have been a concern for the industry as it tries to meet the strong demand for construction projects. The construction industry is already dealing with a shortage of skilled workers and a high number of job openings, and the increase in material costs further adds to the challenges. Contractors and construction companies are grappling with the need to manage costs while meeting project deadlines and maintaining profitability. Construction aggregates play a critical role in the construction industry, impacting the cost of other building supplies, as well as the larger economy. $35 billion of crushed stone and sand and gravel was produced in the U.S. last year. Variations in permitting regulations and community appetite for new quarry projects can complicate sourcing aggregates in certain areas. Rising costs for inputs like materials, equipment, labor, and transportation have increased the price tag for many construction projects. Concrete prices are up 38.9% since 2019. Texas leads the nation in construction aggregate production, processing approximately 200 million tons of crushed stone and nearly 100 million tons of sand and gravel annually. New Jersey has seen the highest aggregate price increases of 41.1% since 2019. Texas, California, and Ohio have experienced aggregate price increases below the national average. The analysis was performed by Twisted Nail, a construction aggregate supply company based in Texas. Construction materials in the U.S. have been impacted by rising costs due to supply chain breakdowns during the pandemic, leading to shortages and broad-based inflation. Rising costs for materials, equipment, labor, and transportation have increased the price tag for construction projects. The Bipartisan Infrastructure Law and the Inflation Reduction Act will contribute to the need for new housing stock and infrastructure projects. Construction aggregates, including crushed stone and sand and gravel, play a critical role in the construction industry, with $35 billion produced in the U.S. last year. Georgia has seen a 24.6% increase in construction aggregate prices, ranking 11th in the U.S. [b678c873] [f68e9ee6]

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