Market Update Q2 2026: Why Early Procurement & Project Planning Is No Longer Optional

Recent market data highlights a clear shift in construction cost dynamic, one that reinforces the importance of early procurement and project planning. For the first time in the history of Gordian’s RSMeans reporting construction costs rose in every U.S. region last quarter.

The market is seeing a targeted price increase, rather than broad inflation across all materials. Metals, electrical system components and mechanical components, particularly structural steel, copper wire, and conduit are driving most of the cost acceleration. These increases are mostly due to rising costs among energy and transportation which greatly impact energy intensive products.

At the same time, not all categories are moving in tandem. Concrete block and fiberglass insulation prices have remained stable, while framing lumber is experiencing a moderate price increase. Indicating a more manageable procurement compared to electrical and mechanical systems.

Getting down to the numbers being seen across the industry:

• Structural steel increased 7.50% in the last quarter, 3.27% below last year.

• Copper wire increased 5.30% in the last quarter, 18.42% increase since last year.

• Metal conduit increased 5.22% in the last quarter, 7.20% increase since last      year.

• Framing lumber increased 5.11% in the last quarter, 4.21% increase since last      year.

• Fiberglass insulation increased 1.26% in the last quarter, 18.49% increase since last year.

• Concrete block decreased 0.82% in the last quarter, 1.67% increase since last year.

Beyond material costs, external pressures continue to challenge project execution. We continue to see a strong demand in labor and resources coming from healthcare, infrastructure and data center projects amplifying the competition for materials and resources necessary to complete projects efficiently. All the while, the supply chain disruptions we all know are continuing to persist and extend lead times on specialized materials and electrical and mechanical equipment.

In response to the rising prices and increased lead times, the most effective strategies all share a common theme. Early project planning is necessary to ensure project completion on time and on budget. Procuring the long lead and high volatility materials early mitigates the exposure to price swings, long lead times and scheduling delays with skilled labor.

Bottom line: In the current market defined by volatility and ongoing supply challenges, early project planning is not optional. Organizations that act early will best protect their budgets and project timelines.