1. BLS and NAHB, October 15: residential inputs up 10.3% in a year
The Bureau of Labor Statistics published the September Producer Price Index at 8:30 AM ET on October 15. Final demand prices rose 1.3% in the month, the largest monthly rise since March 2022, and 6.3% over 12 months. NAHB broke out the part that matters to builders and remodelers: prices of inputs to new residential construction, goods and services together, rose 2.0% in September and 10.3% from a year earlier.
Inside that: building materials (not counting energy) rose 0.4% in the month and 5.5% over the year, the highest annual rate since December 2022. Energy inputs rose 13.0% in the month and 64.1% over the year; No. 2 diesel was up 24.2% in September and 115.2% over the year, unleaded gasoline 66.1%. Softwood plywood rose 15.9% over the year, particleboard and fiberboard 7.8%. On the services side, which is about 40% of the index, trade services rose 14.0% and truck freight and warehousing 19.3% over 12 months.
2. AGC, October 15: the rise is spreading past fuel
The Associated General Contractors of America, reading the same release for nonresidential work, put input costs up 11.9% over the year, the largest in four years and up from 8.9% for August. Steel mill products were up 27.6%, copper and brass mill shapes 30.0%, aluminum mill shapes 25.2%, precast concrete 10.5%. Chief economist Ken Simonson called it "a double whammy of tariff- and war-induced materials cost increases" and said lead times for key steel components have lengthened.
Mortgage rates did not help: Freddie Mac's 30-year average stayed at 7.40% on October 15, unchanged from a week earlier and up from 6.27% a year ago.
Why a small contractor should care
You carry the gap between the day you price a job and the day you buy for it. A fixed-price estimate sent in July and signed in October absorbs every one of these increases out of your margin. Diesel and freight show up in every delivery fee, and the plywood, wire and pipe on a remodel are exactly the lines that moved.
What to do this week
- 01Re-price materials on every estimate that has not been signed yet, starting with the oldest. Get a fresh quote from your supplier for plywood, wire and pipe rather than reusing the spring number.
- 02Shorten how long your price holds. Thirty days may be too long while prices move monthly; say so on the estimate.
- 03Ask your supplier whether delivery fees changed, and add delivery as its own line instead of hiding it in the material price.
- 04Before adding a price escalation clause to your contract, check the wording with your attorney or state board; rules differ by state.
Where WorkTime CRM helps with this
- How long the price holds is one field: Settings → Estimate Design, "Price is guaranteed for N days after sending" (30 by default). The client sees the countdown on the signing page, and the email and PDF print the end date.
- New prices go in once: change a line in your Pricebook and every new estimate uses the saved price as it is.
- The Pipeline shows each estimate still waiting for an answer, with the date of the last touch, so the old ones are easy to find and re-price.