Current Market Trends | Schedule and Budget Impacts

The Bureau of Labor Statistics (BLS) released its May 2026 Producer Price Index report showing that prices for the listed construction commodities increased 2.03% from the previous month and are 13.92% higher than one year ago. Construction commodity pricing remains 65.19% higher than at the start of the pandemic. New nonresidential construction commodity pricing increased 1.76% since April 2026, is up 8.36% over the past 12 months, and remains 51.28% higher than January of 2020 (Pre-COVID).

INPUTS TO CONSTRUCTION (PPI’S)

Updated 06/12/26

*Pre-COVID is defined as the cost change since 1/1/2020, before the pandemic, so as not to inflate any increases artificially.

Data Source: BLS: www.bls.gov/cpi for CPI, www.bls.gov/ppi for PPIs; www.bls.gov/ect for ECIs

O'Donnell Snider Construction

CURRENT MARKET TRENDS

SCHEDULE AND BUDGET

IMPACTS

* This depends on which countries, companies, or products are subject to tariffs.

** This depends of foreign components and which countries, companies, or products are subject to tariffs.

PLUMBING

CURRENT MARKET TRENDS

SCHEDULE AND BUDGET

IMPACTS

CURRENT MARKET TRENDS

SCHEDULE AND BUDGET

IMPACTS

Louvers - AMCA540/550 Hurricane Louver 8 weeks

Motorized Dampers

6 to 8 weeks

Fire/Smoke Dampers 8 weeks

Fire Dampers

6 to 8 weeks

There’s a wide variance here, pending make, model & size, impact should be assessed at timew if design.

There’s a wide variance here, pending make, model & size, impact should be assessed at timew if design.

There’s a wide variance here, pending make, model & size, impact should be assessed at timew if design.

There’s a wide variance here, pending make, model & size, impact should be assessed at timew if design.

***Narrative Explanation:

• Regarding known and/or forecasted tariffs as presented to us by industry vendors, we have seen a couple of nominal increases in most if not all categories as listed in your template. With that said and specifically regarding equipment for both Mechanical HVAC and Plumbing/MedGas, we have been told by our suppliers and manufacturers that based on current market and world trade conditions that we should expect substantial increases dur to tariffs from early to mid-summer. Most have projected a minimum of 50% in early summer and potentially just over 100% by mid-summer.

• Regarding steel as it pertains to sheet-metal, we have already experienced significant increases that have yielded a plus delta of 15% to 20%, and we can expect an additional 30% to 35% by early to mid-summer

• Similarly, as it pertains to steel, we have seen 20% to 25% increases for pipe and can expect that to double by early to mid-summer. Copper and other metals used for commercial and industrial purposes will follow suit down the same path.

CURRENT MARKET TRENDS

SCHEDULE AND BUDGET

BUILDING ENVELOPE

Structural Steel

DRYWALL/ACOUSTICAL

Bar Joists: 10 weeks after approved submittals.

Beams/Columns/ Angle Iron: 2 weeks

IMPACTS

Bar Joists & decking has already seen a 25% increase in material which equals $4.70 per pound. Steel is currently $1.20 per pound

Gyp Board (Typically divide larger projects into multiple shipments (3-4))

Labor Concerns:

Shortage of MEP skilled labors in the Greater Houston Area