The construction industry experienced significant cost increases in 2022, with equipment costs seeing a rise of over 5%, mainly due to operating costs such as higher diesel prices. Labor wages increased by an average of 3.4%, with around 46% of wages increasing over 4% due to union collective bargaining agreements. Construction materials experienced an average increase of 19%, driven by inflation, supply chain constraints, and operating constraints. However, some prices have started to regress in 2023.

Materials cost increases: 

• Wood: 16%
• Steel: 22%
• Concrete & masonry: 15%
• Electrical conduit: 12%
• Insulation: 11%

In light of the continued uncertainty in the construction industry, staying up-to-date with the latest construction costs is crucial for success in 2023. Learn more about construction cost data from 2022 and construction planning in general at gordian.com.