AGC's Data DIGest: April 6-10, 2026

Why It Matters

Higher input costs compress contractor margins and could delay projects, while divergent regional employment trends signal shifting demand and labor‑market pressures for the construction sector.

Key Takeaways

• Diesel fuel PPI jumped 37.8% in March, biggest rise since 1990
• Aluminum, copper, steel prices surged 34%, 21%, and 15% year‑over‑year
• Houston metro added 16,000 construction jobs, a 7% increase
• New York City lost 3,000 construction jobs, a 3% decline
• Beige Book cites Middle East conflict driving higher energy and metal costs

Pulse Analysis

The latest AGC Data DIGest shows construction input costs accelerating at a pace not seen in four years. Diesel‑fuel prices, a critical component of equipment operation, surged 37.8% in March and are up more than 50% year‑over‑year, echoing the spikes of the 1990 Gulf War. Simultaneously, tariffs and geopolitical tension have pushed aluminum, copper and steel prices sharply higher, eroding profit margins for contractors and prompting many to reassess project timelines or seek alternative materials.

Employment data paints a more nuanced picture. While 57% of the 360 metro areas reported year‑over‑year job growth, the gains are concentrated in Sun Belt hubs such as Houston, Dallas‑Plano‑Irving and Austin, where construction activity remains robust. Conversely, traditional markets like New York City and parts of the West Coast experienced net job losses, suggesting regional demand imbalances and potential oversupply of labor in certain locales. The skilled‑trade shortage persists, keeping wages elevated for electricians, plumbers and welders, which further squeezes project budgets.

The Federal Reserve’s Beige Book reinforces the uncertainty stemming from the Middle‑East conflict. Energy and fuel cost spikes are reverberating through freight, plastics and fertilizer markets, while higher metal tariffs add to the price pressure on building supplies. Although overall economic activity remains modestly positive in most districts, firms are adopting a wait‑and‑see stance on hiring and capital investment. Stakeholders should monitor diesel and metal price trajectories, as well as regional labor trends, to navigate the evolving construction landscape effectively.