THE LATEST ON REGIONAL COST TRENDS COST INDEX Q2 2026
CLAYCORP.COM
In Q2 2026, the U.S. construction market remained mixed, with data centers and broader AI infrastructure—including cloud, edge computing, power generation, and utility systems—driving nonresidential growth. Data center construction spending increased roughly 45% year over year in June. Supply chains remained manageable overall, although steel, copper, and electrical equipment continued to face price and availability pressure. Lead times remain a key concern, with large fabricated steel packages requiring approximately 40-50 weeks, switchgear 60–80+ weeks, and large transformers 32-50 weeks or longer, reinforcing the need for early procurement and supply-chain planning.
KURT’S KEY UPDATES
The Latest on Regional Cost Trends Kurt Jaeger Executive Vice President, Preconstruction jaegerk@claycorp.com 314.595.6373
Looking ahead over the next 3–6 months, we expect cost pressure to remain concentrated in electrical infrastructure, metals, specialized mechanical and cooling equipment, and skilled labor. Continued AI, cloud, edge, and power infrastructure investment is competing for electricians, pipefitters, mechanical trades, controls specialists, and experienced supervision, particularly in major data center markets. Labor constraints are also increasing reliance on traveling craft, adding per diem, lodging, travel, overtime, and workforce incentives that can materially increase effective labor costs. As a result, power availability, longlead equipment, steel fabrication capacity, and skilled labor are expected to remain the primary cost and schedule risks through the remainder of 2026.
ENR BUILDING COST INDEX Annual Construction Increase of 4.51%
SEP 2025
Q2 2026
Cost Index
NOV 2025
JAN 2026
MAR 2026
MAY 2026
JUL 2026
The Clayco Cost Index Q2 2026 provides an overview of regional construction cost trends. Clayco believes the current year over year rate of 4.51% will increase in the near term due to increased commodity price projections and shortages in skilled labor supply. The report includes detailed insights on material and construction producer price indexes, delivery lead times, and city-specific cost comparisons across various regions. We would like to extend our sincere thanks to our vendors and trade partners for their invaluable contributions in providing the data and insights that helped shape the Clayco Cost Index Q2 2026.
CLAYCORP.COM
Private Construction Spending
In June 2026, private construction spending decreased 0.1% from May and fell 4.7% year over-year. For the first six months, spending declined by 1.2% compared to the same period in 2025. Type of Construction Aviation
2023 to Jun 26
Jun 25 to Jun 26
May 26 to Jun 26
16.12%
-4.01%
-2.03%
209.56%
45.78%
6.98%
Food/Beverage
-9.98%
-4.73%
0.46%
Health Care
5.36%
-4.57%
0.17%
Higher Education
2.18%
-5.49%
0.52%
Manufacturing
-13.18%
-21.99%
-1.23%
Warehouse
-33.13%
-9.15%
-1.66%
1.13%
-4.71%
-0.13%
Data Center
Overall
150%
100%
50%
0%
2024
United States Census Bureau. Construction Spending - Data.
2025
The material indexes are a quarterly compilation from our suppliers, trade partners, self-perform entities and nationally published commodity indexes. The material cost consist of the following: Concrete, Aggregates, Carbon Steel Pipe, Stainless Steel Pipe, Rebar, Wide Flange Steel, 5/8” Drywall, Copper, Hot Milled Sheet Steel, Lumber, Crude Oil and Hot Liquid Asphalt.
%Δ PREVIOUS QUARTER
%Δ PREVIOUS YEAR
Aggregates
3.94%
4.39%
Aluminum
4.74%
13.33%
Asphalt Paving
1.32%
2.85%
Carbon Steel Pipe
12.02%
22.82%
Concrete
0.68%
4.20%
Copper
7.26%
25.03%
Crude Oil
48.58%
74.05%
Drywall
1.63%
1.45%
Insulation
4.62%
7.55%
Lumber 2x
2.47%
8.93%
Lumber Sheet
-2.45%
-0.50%
Rebar
4.49%
11.56%
Stainless Steel Pipe
3.74%
14.80%
Stainless Steel Sheet
4.76%
6.70%
Structural Steel
5.15%
9.85%
Average
4.99%
12.72%
MATERIAL TYPE
200%
2023
MATERIAL PRODUCER PRICE INDEX
2026
CLAYCORP.COM
. . MIDWEST
Chicago St. Louis Kansas City Minneapolis Detroit Indianapolis
1.19 1.00 1.01 1.10 0.99 0.94
. . NORTHEAST
WEST WEST
.
Phoenix San Francisco Las Vegas Denver Los Angeles Seattle
0.94 1.30 1.07 0.94 1.17 1.11
1.09
New York Boston Philadelphia Cleveland Pittsburgh Baltimore
1.09
1.04
0.89
1.28 1.16 1.15 0.96 1.06 0.96
.SOUTHEAST .
Greenville Nashville Birmingham Tampa Atlanta Dallas
0.88 0.91 0.90 0.89 0.91 0.86
NATIONAL AVERAGE = 1.0 RSMEANS
City Cost Index
National City Cost Index, reference RSMeans 2026 Second Quarter. Shown are six of the main NATIONAL AVERAGE = 1.0 National Cityare Cost Index, averages, reference RSMeans Second Shown are six of the markets in each of the four regions. These weighted leveraging2026 material and Quarter. labor across all scopes of work. This chart compares city cost averages, based on leveraging a national average 1. labor across all scopes main markets in each of the four regions. Thesecity aretoweighted material of and of work. This chart compares city to city cost based on a national average of 1. CLAYCORP.COM
Midwest
2022/2023
2023/2024
2024/2025
2025/2026
Concrete Mason
$57.06
$60.60
$63.73
$64.84
Carpenter
$58.13
$62.94
$70.33
$75.79
Electrician (Inside Wireman)
$71.73
$73.35
$78.02
$84.55
Iron Worker (Structural)
$57.19
$64.99
$76.19
$81.06
Laborer (Common)
$50.37
$55.07
$58.78
$60.85
Plumber
$75.30
$77.24
$78.14
$85.24
$64.14 $63.26 $64.32 $62.07 $47.17 $82.18
$68.46 $66.74 $75.79 $68.17 $52.73 $84.57
$75.76 $73.29 $84.67 $82.74 $54.96 $89.62
$79.61 $77.51 $90.65 $93.34 $62.75 $95.48
$32.49 $35.74 $39.97 $37.77 $27.71 $40.14
$37.92 $41.71 $46.64 $44.07 $32.33 $46.84
$40.45 $45.82 $48.54 $45.85 $34.69 $53.97
$43.35 $49.50 $52.77 $48.81 $41.10 $55.55
$48.48 $53.12 $89.52 $61.78 $50.19 $84.20
$55.41 $61.10 $102.97 $71.07 $57.73 $96.85
$62.47 $66.59 $104.41 $77.35 $58.98 $100.37
$63.23 $68.19 $108.58 $80.44 $63.72 $102.34
Northeast Concrete Mason Carpenter Electrician (Inside Wireman) Iron Worker (Structural) Laborer (Common) Plumber
Penn State Pollock Halls
University Park, PA Pollock Halls is a five-phase, nine-building, multi-year residence hall renovation. Once we finish the last phase of Pollock Halls in 2029, Clayco will have been an active presence on Penn State’s campus for 15 years. The Penn State and Clayco partnership has been a success story of our collaboration and Clayco has hired six graduates as full-time employees, currently working as mission control, superintendents, and senior project engineers.
Southeast Concrete Mason Carpenter Electrician (Inside Wireman) Iron Worker (Structural) Laborer (Common) Plumber West Concrete Mason Carpenter Electrician (Inside Wireman) Iron Worker (Structural) Laborer (Common) Plumber
CLAYCO COST INDEX Q2
Regional
Project Tempo Distribution Facility Hebron, IN The project includes approximately 114 acres of site development, a cross-dock warehouse with 85 dock positions, office space, truck courts, trailer and employee parking, site utilities, stormwater infrastructure and landscaping. Delivered through an integrated design-build approach, the project combines Clayco’s construction expertise with architectural design by LJC Design & Engineering to deliver a coordinated industrial facility designed to support efficient logistics and long-term operational growth.
These numbers constitute both union & non-union composite rates, as well as year over year changes for the following trades: Concrete Mason, Carpenter, Electrician, Iron Worker, Laborer and Plumber. CLAYCORP.COM
Material Price Trends & Projections
The following graphs depict material price changes each quarter, with the initial baseline set at Q1 2025. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices. CARBON STEEL PIPE 10%
CARBON STEEL PIPE CARBON STEEL PIPE
PROJECTION
10%
STAINLESS STEEL PIPE STAINLESS STEEL PIPE
STAINLESS STEEL PIPE
30%
PROJECTION
30%
-1.12% 0%
-6.32%
0%
-1.12%
18.59% 15.23%
20% 20%
-6.32%
11.08%
18.59%
15.23%
11.08% -10% -10%
-20% -20%
-30%
10%
-16.37%
10%
-16.37% -23.73%
-23.24%
-23.73%
-23.24%
2025 QTR 3
2025 QTR 4
0%
2026 QTR 3
QTR 1 STAINLESS2026 STEEL SHEET 2026 QTR 2 STAINLESS STEEL SHEETSTAINLESS STEEL SHEET 40%
2026 QTR 3
2025 QTR 3
2026 QTR 1
2025 QTR 4
40%
22.04%
30%
14.37%
20%
14.37%
15.49% 15.49%
16.49%
26.35%
0%
2025 QTR 4
-10%
2025 QTR 3
2025 QTR 4
2025 QTR 3
2025 QTR 4
2026 QTR 1
2026 QTR 1 STRUCTURAL STEEL STRUCTURAL STEEL
2026 QTR 3
2026 QTR 2
2026 QTR 3
PROJECTION
30% 30%
16.35%
20%
2026 QTR 2
2026 QTR 2
40%
20%
16.49%
2026 QTR 1
-10%
18.88%
10%
2025 QTR 3
1.01%
22.04%
10%
0%
0.38%
STRUCTURAL STEEL 40% PROJECTION
26.35%
30%
20%
1.01%
0%
2026 QTR 2
-30%
0.38%
2026 QTR 3
10.65%
10%
5.92%
10%
5.92%
0% 0%
2025 QTR 3
7.92%
18.88%
16.35%
10.65%
7.92%
2025 QTR 4
2026 QTR 1
2026 QTR 2
2026 QTR 3
2025 QTR 3 2025 QTR 4 2026 QTR 1 2026 QTR 2 2026 QTR 3 2025 QTR 3 2025 QTR 4 2026 QTR 1 2026 QTR 2 2026 QTR 3 Note: The graphs depict material price changes each quarter, with the initial baseline set at Q1 2025. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices.
CLAYCORP.COM
Note: The graphs depict material price changes each quarter, with the initial baseline set at Q1 2025. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices.
The 2026 Q1 Clayco cost projections for Q2 2026 resulted in a 0.33% variance from the actual Q2 2026 costs.
Material Price Trends & Projections (continued) DRYWALL DRYWALL
DRYWALL 20%
PROJECTION
20%
30%
5.56%
10%
5.56%
5.11%
5.37%
5.11%
5.37%
7.09% 7.09%
8.26% 8.26%
20%
13.43%
20%
8.17%
8.42%
8.17%
8.42%
2025 QTR 3
2025 QTR 4
2026 QTR 1
2025 QTR 3
2025 QTR 4
0%
10%
5.47%
0%
10%
5.47%
-10%
0%
-10%
0%
-20%
2025 QTR 3
2025 QTR 4
2026 QTR 1
2026 QTR 2
2026 QTR 3
2025 QTR 3
2025 QTR 4
2026 QTR 1 LUMBER 2X LUMBER 2X
2026 QTR 2
2026 QTR 3
LUMBER 2X 30%
PROJECTION
30%
20% 20%
11.43% 6.44%
10% 10%
2.30%
6.44%
8.75%
-10% -10%
LUMBER SHEET 30%
15.01%
20%
15.01%
20%
8.75%
10% 10%
0%
0%
0%
-10%
2025 QTR 4
2026 QTR 1
14.39% 14.39%
2026 QTR 2
2026 QTR 3
2026 QTR 2
2026 QTR 3
PROJECTION
11.43%
0%
2025 QTR 3
2026 QTR 1 LUMBER SHEET LUMBER SHEET
13.43%
30%
2.30%
-10%
PROJECTION
30%
10%
-20%
INSULATION INSULATION
INSULATION
2026 QTR 2
2026 QTR 3
-10% -10%
2.69%
3.17%
2.69%
3.17%
2025 QTR 3
2025 QTR 4
4.75% 4.75%
2026 QTR 1
2.18%
2.12%
2.18%
2.12%
2026 QTR 2
2026 QTR 3
2025 QTR 3 2025 QTR 4 2026 QTR 1 2026 QTR 2 2026 QTR 3 2025 QTR 3 2025 QTR 4 2026 QTR 1 2026 QTR 2 2026 QTR 3 Note: The graphs depict material price changes each quarter, with the initial baseline set at Q1 2025. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices.
CLAYCORP.COM
Note: The graphs depict material price changes each quarter, with the initial baseline set at Q1 2025. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices.
The 2026 Q1 Clayco cost projections for Q2 2026 resulted in a 0.33% variance from the actual Q2 2026 costs.
Material Price Trends & Projections (continued) AGGREGATES AGGREGATES
AGGREGATES 30%
PROJECTION
30%
30%
30%
20%
20%
20%
20%
10% 10%
0%
4.55% 0.16% 0.16%
-0.44% -0.44%
0.59%
4.55%
-10%
7.02%
7.23%
7.02%
7.23%
2025 QTR 3
2025 QTR 4
2026 QTR 1
2025 QTR 3
2025 QTR 4
5.68%
10%
5.65%
5.68%
10%
5.65%
2025 QTR 3
2025 QTR 4
2026 QTR 1
2026 QTR 2
2026 QTR 3
2025 QTR 3
2025 QTR 4
CONCRETE CONCRETE
2026 QTR 2
2026 QTR 3
2026 QTR 1
PROJECTION
-10% -10%
REBAR 30%
10.16%
REBAR REBAR
2026 QTR 1
20%
20%
20%
10%
-1.59% -1.59%
0.78% 0.78%
1.84% 1.84%
2.54%
2026 QTR 3
2026 QTR 2
2026 QTR 3
PROJECTION
15.93% 12.98% 8.13%
10%
2026 QTR 2
30%
20%
5.08%
10%
5.08%
10%
2.54%
15.93%
12.98%
8.13% 1.27% 1.27%
2.38% 2.38%
0%
0%
-10%
8.66%
10.16%
0%
30%
-10%
8.66%
0%
CONCRETE 30%
0%
PROJECTION
0.59%
0%
-10%
ASPHALT PAVING ASPHALT PAVING
ASPHALT PAVING
0%
2025 QTR 3
2025 QTR 4
2026 QTR 1
2026 QTR 2
2026 QTR 3
-10% -10%
2025 QTR 3
2025 QTR 4
2026 QTR 1
2026 QTR 2
2026 QTR 3
2025 QTR 3 2025 QTR 4 2026 QTR 1 2026 QTR 2 2026 QTR 3 2025 QTR 3 2025 QTR 4 2026 QTR 1 2026 QTR 2 2026 QTR 3 Note: The graphs depict material price changes each quarter, with the initial baseline set at Q1 2025. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices.
CLAYCORP.COM
Note: The graphs depict material price changes each quarter, with the initial baseline set at Q1 2025. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices.
The 2026 Q1 Clayco cost projections for Q2 2026 resulted in a 0.33% variance from the actual Q2 2026 costs.
Material Price Trends & Projections (continued) ALUMINUM ALUMINUM
ALUMINUM 50%
PROJECTION
50%
37.96% 40%
33.14%
40%
20%
10% 10%
30.53% 24.50%
30%
24.50%
30.53%
16.07% 16.07%
20%
27.12% 17.49% 17.49%
18.95% 18.95%
10%
5.55%
10%
5.55% -0.42%
0%
-0.42%
0% 2025 QTR 3
2025 QTR 4
2026 QTR 1
2026 QTR 2
2026 QTR 3
2025 QTR 3
2025 QTR 4
2026 QTR 1
2026 QTR 2
2026 QTR 3
2025 QTR 3
2025 QTR 4
CRUDE OIL CRUDE OIL
2026 QTR 2
2026 QTR 3
2025 QTR 3
2025 QTR 4
2026 QTR 1
2026 QTR 2
2026 QTR 3
CRUDE OIL 100%
2026 QTR 1
100%
PROJECTION
70.80% 70.80%
56.71% 56.71%
50% 50%
14.95% -1.87% 0%
PROJECTION
30%
20%
27.12%
30%
20%
37.96%
33.14%
30%
COPPER COPPER
COPPER
-1.87%
0% 2025 QTR 3
14.95% -7.78%
Projection Accuracy The 2026 Q1 Clayco cost projections for Q2 2026 resulted in a 0.33% variance from the actual Q2 2026 costs.
-7.78%
2025 QTR 4
2026 QTR 1
2026 QTR 2
2026 QTR 3
2025 QTR 3 2025 QTR 4 2026 QTR 1 2026 QTR 2 2026 QTR 3 Note: The graphs depict material price changes each quarter, with the initial baseline set at Q1 2025. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices.
CLAYCORP.COM
Note: The graphs depict material price changes each quarter, with the initial baseline set at Q1 2025. The values represent the percentage change from the initial baseline, offering a clear perspective on quarterly fluctuations in material prices.
The 2026 Q1 Clayco cost projections for Q2 2026 resulted in a 0.33% variance from the actual Q2 2026 costs.
Material & Equipment Delivery Lead Times MATERIAL
CURRENT LEAD TIME
STEEL JOIST & DECKING
4-5 Months
ACOUSTICAL DECKING
6-9 Months
STEEL BEAMS/COLUMNS
10 Months
Typical Lead Time
ROOFING
Insulation Board, Membrane, Fastners & Accessories 1-4 Weeks
Average Lead Time
DRYWALL, METAL STUDS, ACT
2-4 Weeks
Longer Lead Time
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
Month 13
Month 14
Month 15
LEGEND
Slightly Longer Lead Time
GE/Whirlpool Residential Packages 6-12 Weeks APPLIANCES
Commercial Breakroom Appliances 2-12 Weeks White Doors 6-8 Weeks
OVERHEAD DOCK DOORS
Dock Levelers & Dock Seals 8-16 Weeks Light Commercial =<25 tons 14-16 Weeks
PACKAGED DX ROOFTOP UNITS
Commercial RTUs >25 tons 16-28 Weeks
AIR HANDLING UNITS
18-42 Weeks
LIGHT FIXTURES (INTERIOR, EXTERIOR)
10-18 Weeks with exception of Poles 18-22 Weeks
Vista Gear Remote and Manual 60 Weeks PAD MOUNT SWITCHES
Vista Gear Automatic Transfer 70 Weeks Air Cooled 28-73 Weeks
CHILLERS COOLING TOWERS
Water Cooled 16-48 Weeks
16-18 Weeks Generators 24-56 Weeks (2.5 meg and larger 70-85 Weeks) ATSs 18-40 Weeks Switchgear 28-48 Weeks
ELECTRICAL
Switchboards 18-38 Weeks Panelboards 8-18 Weeks Copper Conductor 5KV to 25KV - 30-56 Weeks Aluminum Conductor 5KV to 25KV - 34-56 Weeks VPI 42 Weeks
TRANSFORMERS
CRT 32-36 Weeks Oil Filled Pad Mounted 26-50 Weeks
BUSWAY
1600amp and 2000amp 38-65 Weeks
SHOP FABRICATED STEEL TANKS
18-34 weeks
POLY TANKS
8-12 weeks
IMP
8-14 weeks
ELEVATORS
14 weeks
CLAYCORP.COM
Get in Touch with Our Team Ryan Abbott President, Southwest Region abbottr@claycorp.com 602.725.4995
Ryan McGuire President, Construction President, Clayco Compute mcguirer@claycorp.com 312.576.3804
OFFICE LOCATIONS Atlanta, GA Birmingham, AL Chicago, IL Culver City, CA Greenville, SC Kansas City, MO Phoenix, AZ Raleigh, NC St. Louis, MO
AVIATION
ADVANCED MANUFACTURING
FOOD & BEVERAGE/ DISTRIBUTION
HEALTHCARE
LIFE SCIENCES
RESIDENTIAL & HOSPITALITY
COMMERCIAL
AUTOMOTIVE & ELECTRIC VEHICLE
POWER & ENERGY
HIGHER EDUCATION
CLAYCO COMPUTE
SPORTS & ENTERTAINMENT
CLAYCORP.COM