Declines in Materials Costs Begin to Level Out

The steep slide in construction materials costs that began in 2008 pulled up during the fourth quarter of 2009. They ended the year with a 2 percent decrease, significantly less than the 8 percent decrease that had been the pace midyear.

After its precipitous fall in 2009, asphalt is expected to increase by 6 to 10 percent in 2010. Due to the downward momentum of the housing market, gypsum board continues its decline, while batt insulation, which had fallen 1 to 2 percent in 2009, may turn upward this year. A continuing slowdown in the demand for iron ore will result in reduced prices for ductile iron pipe in 2010. Known for price volatility and a curve of its own, PVC piping is headed upward in the early months of the year.