Utility Dive•about 9 hours ago
Tariffs lifted nonresidential construction costs 3.2% in 2025
Key Takeaway
Rising material costs driven by trade policy will significantly increase capital expenditures for new power generation, transmission, and large consumer facilities.
AI Summary
- •Nonresidential construction costs are projected to increase by 3.2% in 2025 due to tariffs.
- •Key materials experienced significant year-over-year price increases in December: copper wire and cable jumped 22%, while iron and steel were up 12%.
- •Trade policy is expected to continue exerting upward pressure on material costs in 2026, impacting developers and large power consumers.
Topics
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Article Content
Trade policy will “continue to put upward pressure on certain materials” in 2026, said the chief economist for Associated Builders and Contractors. In December, copper wire and cable jumped 22% year over year. Iron and steel were up 12%.