What Rising Material Costs Mean for Florida Contractors

Florida contractors coordinate work on a commercial jobsite.

Construction material costs continued to climb in March, adding another layer of pressure for contractors already managing tight budgets, long lead times, and shifting project schedules. According to AGC of America’s latest analysis of federal producer price index data, the cost of materials and services used in nonresidential construction rose 1.7% from February to March. Over the past 12 months, those costs are up 4.4%.

For Florida contractors, pricing conditions are still changing quickly. A project may look stable initially, but sudden increases in fuel, metals, and other key inputs can change what it costs to deliver the work in the field.

Diesel Costs Hit Every Part of the Job

The most dramatic increase came from diesel fuel, which rose 37.8% from February to mid-March. Diesel affects more than the fuel used in trucks and equipment. It also shows up in deliveries, hauling, freight, fuel surcharges, and the movement of materials across a job site.

That matters because contractors rarely have the option to absorb major cost changes without consequences. When fuel prices jump this quickly, the added expense can move through the entire project, from material delivery to equipment operation.

Florida contractors balance tight schedules and rising costs.

Metals Remain a Budget Concern

Key construction metals also continued to rise. Aluminum mill shapes were up 34.1% year over year, copper and brass mill shapes were up 21.3%, and steel mill products were up 15.4%.

For contractors, those numbers can affect many scopes of work, including structural steel, electrical systems, mechanical systems, framing, finishes, and specialty materials. Even small changes in these categories can create meaningful budget pressure, especially on projects that were estimated months before the work begins.

Florida contractors gather at an AGC of Greater Florida event to share strategies for navigating cost pressure.

Next Steps for Florida Contractors

Florida’s construction market depends on careful coordination between contractors, owners, suppliers, and trade partners. Contractors can protect their teams and their projects by reviewing supplier pricing, delivery timelines, escalation language, contingency planning, and communication with project owners.

The goal is to identify risk before it disrupts the job, not after a cost increase has already created pressure. The contractors navigating them best are the ones with access to the right data, the right network, and the right advocacy. That's what AGC of Greater Florida membership is built for.

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