Construction input prices surged again in April, with overall costs rising 1.7 percent for the month and 7 percent year over year, according to an Associated Builders and Contractors analysis of U.S. Bureau of Labor Statistics Producer Price Index data. Nonresidential construction input prices climbed 1.8 percent in April and 7.4 percent over the past 12 months.

The numbers underscore a troubling trend that ABC Chief Economist Anirban Basu described in stark terms: construction input prices have now increased 6.2 percent during just the first four months of 2026 — surpassing the combined 4.8 percent increase recorded across the previous three years.

"Input prices have now risen more during the first four months of 2026 than over the prior three years," Basu said. "While much of the recent rise can be traced to soaring oil prices, escalation was widespread in April, with tariff-affected materials like iron and steel posting particularly large price increases."

Energy and Tariffs Driving the Surge

Energy costs posted some of the sharpest monthly gains, with crude petroleum prices jumping 11.3 percent, unprocessed energy materials rising 9.2 percent, and natural gas climbing 4.9 percent. Tariff-affected categories, particularly iron, steel and imported building products, are compounding the pressure.

For roofing contractors, the impact is direct and broad. Higher petroleum costs can ripple through asphalt roofing products, synthetic underlayments, insulation materials and membrane systems.” Steel price increases affect metal roofing, flashing, fasteners, roof decking components and fabricated edge metal. And fuel price escalation raises transportation and equipment operating costs during peak construction season.

Brad Resch, president of Gulfeagle Supply, one of the country's largest roofing distributors, said fuel and delivery costs are central to the challenge his company faces. "Fuel and transportation costs are critical to our business as a roofing distributor since this is essentially our main function — delivering materials to jobsites," Resch said. "We do try to absorb as much of the fuel increases as possible, but that is only feasible to a point."

When absorption limits are reached, Resch said the company communicates proactively with its contractor base and adjusts delivery pricing accordingly.

When it comes to material volatility, Resch said imported products are feeling the most acute pressure. "The few products that are imported, like nails and underlayments, are being affected the most due to tariffs. Beyond that, the biggest spikes we are seeing are in metal — metal roofing, flashing, etc."

Contractors Adapt Purchasing Behavior

Resch noted that when distributors can spot increases coming far enough in advance, they alert contractor customers to allow for strategic forward purchasing. But that window is limited. "Contractors typically honor their pricing for only 30 days," he said, "which gives them the ability to adjust for increases in material costs if needed."

David Nye, Chief Growth Officer at Peak Roofing Partners and former owner of SkyMark Roofing, said the broader industry shift is less about managing individual spikes and more about adapting to a structurally higher-cost environment.

"Material pricing has largely stabilized compared to the volatility of the past few years, but at a higher baseline," Nye said. "Recent increases from manufacturers and distributors, often tied to tariffs, oil prices, and broader supply chain dynamics, continue to put pressure on costs."

Nye said his company has responded with tighter operational controls and greater internal alignment across estimating, procurement and operations. Rather than adding escalation clauses or dramatically shortening bid timelines, the focus has been on predictability and execution. "The focus has been on transparency and educating customers on scope, materials, and long-term value," he said.

Related: Asphalt Shingle Demand Falls 9.9% in Q1 as Costs Surge

Demand Steady, but Dynamics Shifting

Despite the cost pressures, both Resch and Nye described demand conditions as stable, though the character of that demand is evolving.

Nye summarized the current Florida market: "The roofing market has softened compared to recent years, but demand remains steady as roofing is a necessity, increasingly driven by insurance requirements, with success dependent on delivering consistent quality, strong customer experience, and diversified operations."

On the residential side, Nye is seeing longer decision cycles and a higher concentration of projects triggered by insurance requirements rather than discretionary upgrades. Homeowners are also becoming more selective, placing greater weight on contractor reputation and long-term accountability as competition and market saturation increase.

Commercial demand, by contrast, remains strong, supported by ongoing development and capital improvement activity across Florida.

Margin Risk Grows for Fixed-Price Contracts

Contractors working under fixed-price agreements face the sharpest exposure if material escalation persists through the second half of the year. Longer lead times or delayed purchasing decisions could further complicate project scheduling and procurement on large commercial roofing projects.

Basu also flagged a broader macroeconomic concern: persistent inflation and strong labor market conditions may reduce the likelihood of Federal Reserve interest rate cuts in 2026. While contractors continue reporting solid backlogs, ongoing cost escalation could weigh on future construction demand and capital project activity in the months ahead.