That’s the headline from Data DIGEST on October 10, 2026.
Ken Simonson, the Chief Economist at AGC, produces this report weekly, reflecting the up-to-date situation for the U.S. Construction Industry.
While always a good, informative executive review, this issue is noteworthy for reflecting the cost increases all of us are dealing with. In the past 12 months input costs have risen 11.9%, well outpacing reported inflation rates.
All PM’s and purchasers are seeing it in their cost of goods, but increases are also being included via add on costs, sometimes known as UN-BUNDLING. For example, when purchasing truck loads of round bar for our Anchor Bolt manufacturing unit, steel mills would typically quote delivered costs. Recently the quotes have been, FOB, at the mill, thus leaving us to arrange the pickup and delivery. This reflects not only the increased cost of diesel fuel, but the complete uncertainty of what increases may yet to be coming.
Note: Diesel fuel cost in 2025 ranged at $ 3.71 per gallon. In September 2026 national average was $ 6.36. A recent load we contracted the shipping for cost $ 8,700 to deliver 45,000 lbs., or $ 0.193 per pound.
Add to that the tariffs, and the extraordinary demand for steel and concrete being created by the data center boom.
To the Steel Fabricator the danger in rising costs.
The danger is always in the estimating stage. It is impossible to predict costs of steel, structural bolts, anchor bolts and all the peripheral items into the future. There are all kinds of methods to deal with rising costs, such as Project Midpoint Estimation, Escalation Contingencies, etc. We can’t help with that, but where The Steel Supply Company can help is by minimizing cost escalation through early engagement. With enough lead time we can lock in raw material costs and /or set aside supplies and lock in costs based on a delayed Purchase order.
If you are confronted by a situation where this may be of some help, feel free to call or email.
The Steel Supply Company
p. 631-212-3236
e. info@thesteelsupplyco.com