Many consumers might assume that when gas prices rise, the primary impact is on their travel costs. However, the price of gas can affect all aspects of the economy, with construction being an industry that feels the effects on a variety of levels. From running equipment to transporting the items to different sites, has prices seriously influence the cost of construction.
WALB in Albany, Georgia, reports that construction material costs tend to rise along with gas prices. According to the U.S. Energy Information Administration, the price of gas has already risen by 49 cents per gallon this year, which is 40 cents higher than the average increase seen during this time in previous years.
That in turn has increased the cost of common construction materials like asphalt, PVP piping, drywall and shingles. The news outlet reports that construction costs are up more than five percent compared to a year ago.
"The construction industry overall has been in a state of depression, contractors are guilty as anybody else." Ben Barrow, president of LRA Construction, told the news source. "We've lowered our rates, our profit margins have been almost non-existent, but that's helped off-set some of the increases in the materials."
Contractors who want to keep costs down may want to look into buying used construction equipment online through IronPlanet, as it's often less expensive than buying new.
