AGC Suggests Actions to Address Rising Construction Costs

A senior construction executive of a leading construction company in Chapel Hill, North Carolina, Ted Vitale has spent the past 15 years in the region. During that time he has completed and managed numerous restaurants, hospitality, and commercial construction projects throughout the area. Additionally, Ted is particularly interested in trends that affect the construction market.

In October 2022, US construction contractors’ bid prices spiked amid a labor shortage, supply chain challenges or delays, and a high-interest rate. In addition, some project executives contemplated whether to cancel or delay projects due to an unanticipated uptick in construction costs. To help mitigate these challenges, the Associated General Contractors of America (AGC) urges the federal government and investors to step in.

According to AGC, project owners will be subject to less financial burden if federal officials remove tariffs on primary construction materials like aluminum and steel. AGC also highlights the contributory role of the Buy America construction program in the rising cost of construction materials and suggests revisiting the program. AGC also suggests increased investment in construction training and education.