AGC Presses for Action on Construction Materials Prices

On May 28, President Biden’s National Economic Council sought input from AGC Chief Economist Ken Simonson on construction supply chain issues, materials price increases and their impacts. Simonson informed the lead economists for Vice President Harris and the U.S. Department of Commerce, among others, that the construction industry is experiencing the greatest price increases and supply chain disruption in his twenty year AGC career. When asked what policies the Biden Administration should consider, AGC’s chief economist noted the elimination of tariffs on construction materials, allowance for change orders on federal construction contracts in response to unanticipated changes in materials costs, quantities, and delivery times, and abandonment of any government policy initiatives that would restrict the types or sources of construction materials, equipment or labor.