Input prices for new nonresidential construction dipped 0.3% in December but rose 3.3% year over year (y/y), according to producer price index (PPI) data the Bureau of Labor Statistics (BLS) posted on Friday. AGC posted tables and charts of construction-related PPIs. The y/y increase reflects sharp price gains for several key construction materials, including aluminum mill shapes (up 30.5%), steel mill products (up 17%), and copper and brass mill shapes (up 11.8%). Prices for construction machinery and equipment rose 5.6% over the past year, the largest increase since December 2023. Although PPIs exclude foreign producers’ prices, some domestic producers were quick to raise prices once tariffs took effect. Tariffs on aluminum and steel from most countries increased from 25% to 50% on June 4. A 50% tariff on products containing copper took effect on August 7. Readers are invited to consult AGC’s Tariff Resource Center for the latest details and to send information about project timing, materials price changes, and supply chains to ken.simonson@agc.org.
Seasonally adjusted construction employment rose from November to December in 20 states and the District of Columbia, declined in 26 states, and was flat in Pennsylvania, Alaska, Colorado, and Arkansas, according to AGC’s analysis of BLS data posted on Tuesday. Arizona added the most construction jobs (3,900 or 1.7%), followed by Wisconsin (3,100, 2.1%), Washington (1,500, 0.7%), and Montana (1,100, 3.0%). The largest percentage gain occurred in Montana, followed by Wisconsin and Arizona. Minnesota lost the largest number and percentage of construction jobs from November to December (-9,900 jobs, -6.6%). Large numerical losses also occurred in California (-5,500, -0.6%) and Texas (-4,500, -0.5%). Large percentage losses also occurred in Oklahoma (-2.4%, -2,200 jobs) and Oregon (-2.1%, -2,500). For the year, 34 states and D.C. added construction jobs, 15 states shed jobs, and employment held steady in Maine. Texas added the most construction jobs (15,700 or 1.8%), followed by North Carolina (14,400 jobs, 5.3%), Ohio (14,300 jobs, 5.7%), Missouri (8,500 jobs, 5.9%), and Illinois (7,900 jobs, 3.4%). Hawaii had the largest percentage gain for the year (8.7%, 3,400 jobs), followed by Iowa (8.6%, 7,100), Idaho (8.2%, 6,100), West Virginia (7.6%, 3,500), and New Mexico (6.8%, 3,800 jobs). California lost the most construction jobs during the past 12 months (-19,800 jobs, -2.2%), followed by New York (-15,700 jobs, -4.1%), Washington (-11,600 jobs, -5.2%), Nevada (-10,500 jobs, -9.3%), and New Jersey (-10,200 jobs, -6.2%). The largest percentage loss was in Nevada, followed by New Jersey, Washington, New York, and Vermont (-3.7%, -600 jobs). (BLS reports combined mining, logging, and construction data for Hawaii, Maryland, and D.C.; AGC treats all jobs as construction.)
The outlook for manufacturing construction is varied. Project tracker E2 reported on December 12, “cancellations, closures, and downsizes are outpacing new project investments and jobs nearly three to one in 2025. More than $32 billion in investments and nearly 40,000 jobs have been abandoned in 2025, compared to less than $12 billion and 19,000 new jobs announced.” But Supply Chain Dive reported on January 22, “at the same time, some industry giants have significantly increased investment in the U.S.…The announcements are a combination of building new facilities and expanding existing plants,” citing plans and starts by Micron, Samsung Electronics, Stellantis, Lilly, Texas Instruments, Rivian, Tesla, Hyundai, and JetZero.
“Population growth in the United States has slowed significantly with an increase of only 1.8 million, or 0.5%, between July 1, 2024, and July 1, 2025,” the Census Bureau reported on Tuesday. Population changes over time are a major contributor to demand for numerous types of construction, funding for public construction, and supply of potential construction workers. “This was the nation’s slowest population growth since the early period of the COVID-19 pandemic, when the population grew by a historically low 0.2% in 2021. The slowdown also comes after a sizeable uptick of growth in 2024, when the country added 3.2 million people and grew by 1.0%, the fastest annual population growth rate since 2006.” Net international migration slowed from 2.7 million in 2024 to 1.3 million, with declines in every state and D.C., while births and deaths remained relatively stable. The decline in net immigration is significant for construction; 35% of craft workers in 2024 were foreign-born. “All four census regions and every state except Montana and West Virginia saw their growth slow, or their decline accelerate.” The fastest-growing states were South Carolina (1.5%, vs. 1.8% in 2024, when it ranked 2nd), Idaho (1.4%, vs. 1.5%, 5th), North Carolina (1.3%, vs. 1.7%, 3rd), and Texas (1.2%, vs. 2.0%, 1st). Five states lost population: Vermont (-0.3%); Hawaii, New Mexico, West Virginia (all -0.1%); and California (-0.02%).
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