{
  "query": "UK construction cost inflation 2024-2026 steel industry projects",
  "raw_results": [
    {
      "url": "https://edzarenski.com/2025/02/21/construction-inflation-2025-2-21-25/",
      "title": "Construction Inflation & PPI 2025 updated 10-17-25",
      "content": "ALL PPI DATA TABLES UPDATED TO JUL 8-15-25\n\nALL PPI DATA UPDATED TO APR 5-15-25 PPI data INPUTS for the month of Apr: Paving Mixtures -9.5%, Steel Mill Products +5.8%, Steel Pipe & Tube +6.3%, Nonferrous Wire +3.7% YTD25/avg24: Concrete Pipe +8.5%, Paving Mixtures -8.5%, Lumber/Plywd +4.9%, Steel Mill Products +3.7%, Nonferrous Wire +3.5%, Diesel -10.8%. PPI data FINAL DEMAND Apr closes out Q1. Q1’25/Q4’24: Avg Nonres Bldgs +0.6%, School +0.4%, Healthcare +2.2% YTD25/avg24: Avg Nonres Bldgs +1.35%, School +1.4%, Office +1.6%, Healthcare +2.91%. [...] Inputs Table updated 2-15-25 Jan’25 Inputs are up, +0.8% to Nonres, +1.2% to Residential and 1.2% to Highway, the largest increases since Jan’24. The largest Input item increases in January are Paving Mixtures (up 14.6%), Diesel Fuel (up 3.6%), Concrete Brick, Block & Pipe (up 2.2%), Copper & Brass Shapes (up 1.9%) and Flat Glass (up 1%). Steel Pipe & Tube is down 1.3%. Both Lumber/Plywood and Fabricated Structural Steel are down 0.5% or less.\n\nIn the quarterly percent change table you can see the drop in Q3’22 and more in Q4’22, a sharp change in the rate of inflation. This shows up as expected in lower average of Inputs to Res and NonRes for 2023.\n\n2-15-25 PPI Materials Inputs for 2024 to Residential are up 1.7%, to Nonres Bldgs are up 0.6% and to Highway are up 0.5%. [...] Any time a construction project is delayed or put on hold to start at some future date, construction cost inflation must be calculated and added to the previous budget to account for the unanticipated cost increase due to the delay. Of utmost importance is using appropriate cost indices and forecasting future cost growth to account for the difference in original budget and revised budget.",
      "score": 0.8088086,
      "raw_content": null
    },
    {
      "url": "https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends",
      "title": "Global construction cost trends - GCMI 2025",
      "content": "In developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends.\n\nGiven the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions.\n\n#### GLOBAL\n\n## Construction input costs and global supply trends\n\n### Labour [...] Image 28\n\nConstruction cost growth continues to show signs of easing at the global level. On average, construction cost inflation is projected to settle at 3.9 percent globally in 2025, before rising marginally to 4 percent in 2026, though regional disparities persist.",
      "score": 0.8020137,
      "raw_content": null
    },
    {
      "url": "https://www.rlb.com/europe/insight/how-will-the-middle-east-crisis-impact-the-uk-construction-industry/",
      "title": "How will the Middle East crisis impact the UK construction industry?",
      "content": "It is energy-intensive and bitumen-derived materials along with imported products that are most at risk of inflation due to the crisis.\n\nIt should be noted that supply chains are often fragmented and price increases can be absorbed in the short term. Some price increases currently being reported may also be opportunistic pricing adjustments, ie profiteering, or hedging against future market conditions.\n\nFurthermore, any increases should be placed in context of material cost movements seen over the preceding 12 months. These have been broadly static or have even decreased. For example, the Office for National Statistics reports a 0.2% increase in material indices for non-housing new work from January 2025 to January 2026, while steel reinforcement prices fell by 6.6% over the same period. [...] In our CMI report, we anticipated that some softening demand was likely to come into play and impact tender prices later this year. If the current ceasefire holds, stabilisation of inflation and a return of interest rates to their trajectory from January 2026 is likely to take several months.\n\n#### Which types of construction projects face the greatest risk?\n\nCost escalation risk is most acute in sectors where work content is highly exposed to inflation‑sensitive inputs and where client pipelines are resilient to demand‑side volatility, limiting the normal market mechanisms that would otherwise moderate pricing.\n\nOther types of projects at risk include:\n\n#### How should procurement strategies adapt to the changing dynamics of the market?\n\nKey actions include:",
      "score": 0.7769112,
      "raw_content": null
    },
    {
      "url": "https://www.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html",
      "title": "2026 Engineering and Construction Industry Outlook | Deloitte Insights",
      "content": "Recent tariffs, especially on steel and aluminum, reaching up to 50%5—have sharply raised construction material costs.6 The effective tariff rate for construction goods climbed to a 40-year high of 25% to 30% in 2025.7 The financial impact is evident: Material prices have risen steadily from May through August 2025.8",
      "score": 0.7409441,
      "raw_content": null
    },
    {
      "url": "https://www.arcadis.com/en-gb/insights/perspectives/europe/united-kingdom/uk-construction-market-view-spring-2026",
      "title": "UK Construction Market Outlook Spring 2026 - Arcadis",
      "content": "What is the forecast for UK construction inflation?\n\n  Construction cost inflation is expected to remain moderate in the near term due to soft demand and competitive pressure across supply chains. However, rising commodity and energy prices, labour shortages, and increased infrastructure investment could create renewed inflationary pressure as market activity strengthens.\n How will building costs change in 2026? [...] The Spring 2026 Arcadis UK Market View examines the forces shaping the UK construction market, from shifts in sector performance and regional activity to emerging cost pressures and long-term infrastructure investment.\n\n## UK construction industry trends, growth, and inflation insights\n\nThe Spring 2026 Arcadis UK Market View provides a data-driven perspective on the forces shaping the UK construction sector. The report combines market research and analysis, sector insights, and forward-looking forecasts to help industry leaders navigate an uncertain recovery.\n\nConstruction growth and sector performance analysis—how residential, commercial, infrastructure, and public sectors are diverging in a two-speed recovery. [...] Recent increases in metals prices, particularly copper and aluminium, are expected to affect specialist components such as electrical systems, cladding, and transmission infrastructure. While price hedging and supply chain dynamics may delay some impacts, sustained commodity inflation could increase costs for complex building and infrastructure projects.\n What could be the effect of the 2026 Iran War?\n\n  The conflict in the Gulf Region is causing significant disruption to energy markets that will spill over into manufacturing supply chains. The Spring Market View forecast does not include a specific assessment of the impact of the War but includes a range of inflationary outcomes.",
      "score": 0.72977066,
      "raw_content": null
    }
  ],
  "formatted": "Source: Construction Inflation & PPI 2025 updated 10-17-25\nURL: https://edzarenski.com/2025/02/21/construction-inflation-2025-2-21-25/\nALL PPI DATA TABLES UPDATED TO JUL 8-15-25 ALL PPI DATA UPDATED TO APR 5-15-25 PPI data INPUTS for the month of Apr: Paving Mixtures -9.5%, Steel Mill Products +5.8%, Steel Pipe & Tube +6.3%, Nonferrous Wire +3.7% YTD25/avg24: Concrete Pipe +8.5%, Paving Mixtures -8.5%, Lumber/Plywd +4.9%, Steel Mill Products +3.7%, Nonferrous Wire +3.5%, Diesel -10.8%. PPI data FINAL DEMAND Apr closes out Q1. Q1’25/Q4’24: Avg Nonres Bldgs +0.6%, School +0.4%, Healthcare +2.2% YTD25/avg24: Avg Nonres Bldgs +1.35%, School +1.4%, Office +1.6%, Healthcare +2.91%. [...] Inputs Table updated 2-15-25 Jan’25 Inputs are up, +0.8% to Nonres, +1.2% to Residential and 1.2% to Highway, the largest increases since Jan’24. The largest Input item increases in January are Paving Mixtures (up 14.6%), Diesel Fuel (up 3.6%), Concrete Brick, Block & Pipe (up 2.2%), Copper & Brass Shapes (up 1.9%) and Flat Glass (up 1%). Steel Pipe & Tube is down 1.3%. Both Lumber/Plywood and Fabricated Structural Steel are down 0.5% or less. In the quarterly percent change table you can see the drop in Q3’22 and more in Q4’22, a sharp change in the rate of inflation. This shows up as expected in lower average of Inputs to Res and NonRes for 2023. 2-15-25 PPI Materials Inputs for 2024 to Residential are up 1.7%, to Nonres Bldgs are up 0.6% and to Highway are up 0.5%. [...] Any time a construction project is delayed or put on hold to start at some future date, construction cost inflation must be calculated and added to the previous budget to account for the unanticipated cost increase due to the delay. Of utmost importance is using appropriate cost indices and forecasting future cost growth to account for the difference in original budget and revised budget.\n\n---\n\nSource: Global construction cost trends - GCMI 2025\nURL: https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends\nIn developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends. Given the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions. #### GLOBAL ## Construction input costs and global supply trends ### Labour [...] Image 28 Construction cost growth continues to show signs of easing at the global level. On average, construction cost inflation is projected to settle at 3.9 percent globally in 2025, before rising marginally to 4 percent in 2026, though regional disparities persist.\n\n---\n\nSource: How will the Middle East crisis impact the UK construction industry?\nURL: https://www.rlb.com/europe/insight/how-will-the-middle-east-crisis-impact-the-uk-construction-industry/\nIt is energy-intensive and bitumen-derived materials along with imported products that are most at risk of inflation due to the crisis. It should be noted that supply chains are often fragmented and price increases can be absorbed in the short term. Some price increases currently being reported may also be opportunistic pricing adjustments, ie profiteering, or hedging against future market conditions. Furthermore, any increases should be placed in context of material cost movements seen over the preceding 12 months. These have been broadly static or have even decreased. For example, the Office for National Statistics reports a 0.2% increase in material indices for non-housing new work from January 2025 to January 2026, while steel reinforcement prices fell by 6.6% over the same period. [...] In our CMI report, we anticipated that some softening demand was likely to come into play and impact tender prices later this year. If the current ceasefire holds, stabilisation of inflation and a return of interest rates to their trajectory from January 2026 is likely to take several months. #### Which types of construction projects face the greatest risk? Cost escalation risk is most acute in sectors where work content is highly exposed to inflation‑sensitive inputs and where client pipelines are resilient to demand‑side volatility, limiting the normal market mechanisms that would otherwise moderate pricing. Other types of projects at risk include: #### How should procurement strategies adapt to the changing dynamics of the market? Key actions include:\n\n---\n\nSource: 2026 Engineering and Construction Industry Outlook | Deloitte Insights\nURL: https://www.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html\nRecent tariffs, especially on steel and aluminum, reaching up to 50%5—have sharply raised construction material costs.6 The effective tariff rate for construction goods climbed to a 40-year high of 25% to 30% in 2025.7 The financial impact is evident: Material prices have risen steadily from May through August 2025.8\n\n---\n\nSource: UK Construction Market Outlook Spring 2026 - Arcadis\nURL: https://www.arcadis.com/en-gb/insights/perspectives/europe/united-kingdom/uk-construction-market-view-spring-2026\nWhat is the forecast for UK construction inflation? Construction cost inflation is expected to remain moderate in the near term due to soft demand and competitive pressure across supply chains. However, rising commodity and energy prices, labour shortages, and increased infrastructure investment could create renewed inflationary pressure as market activity strengthens. How will building costs change in 2026? [...] The Spring 2026 Arcadis UK Market View examines the forces shaping the UK construction market, from shifts in sector performance and regional activity to emerging cost pressures and long-term infrastructure investment. ## UK construction industry trends, growth, and inflation insights The Spring 2026 Arcadis UK Market View provides a data-driven perspective on the forces shaping the UK construction sector. The report combines market research and analysis, sector insights, and forward-looking forecasts to help industry leaders navigate an uncertain recovery. Construction growth and sector performance analysis—how residential, commercial, infrastructure, and public sectors are diverging in a two-speed recovery. [...] Recent increases in metals prices, particularly copper and aluminium, are expected to affect specialist components such as electrical systems, cladding, and transmission infrastructure. While price hedging and supply chain dynamics may delay some impacts, sustained commodity inflation could increase costs for complex building and infrastructure projects. What could be the effect of the 2026 Iran War? The conflict in the Gulf Region is causing significant disruption to energy markets that will spill over into manufacturing supply chains. The Spring Market View forecast does not include a specific assessment of the impact of the War but includes a ran"
}