Highway, Street & Bridge Construction NAICS 237310

Oct 9, 2025 - Construction Input Prices Rise

• Producer prices for materials and services used in nonresidential construction rose 0.2% in August from July, and were up 2.5% year-over-year, according to analysis of Bureau of Labor Statistics data by the Associated Builders and Contractors (AGC). The AGC’s chief economist said that while stockpiling and delayed effective dates for some of the tariffs have limited the impact, tariff-related costs are expected to rise over the next several months. Producer prices have increased for many types of materials used in highway, street and bridge construction, including hot-rolled steel bars, plates, and structural shapes (up 4.8% in August from July and 6.5% from August 2025), prepared asphalt (up 2% MoM, 6.1% YoY), construction sand, gravel, and crushed stone (up 0.1% MoM, 6.1% YoY), and fabricated metal products (up 0.8% MoM, 5.9% YoY).
• In a recent conversation with Construction Dive, Silvia Ruiz of Netherlands-based civil engineering firm Ferrovial discussed the opportunities in the US transportation infrastructure sector. Ruiz noted that Ferrovial’s highway construction division is thriving, with North American assets delivering a 14.9% revenue increase in the first half of 2025. The company sees highways as resilient, long-term investments that support mobility, economic growth, and inflation-adjusted returns. Public-private partnerships are central to Ferrovial’s strategy, helping cities overcome funding gaps and deliver critical infrastructure. Projects like the TEXpress lanes in Dallas-Fort Worth have generated $24 billion in economic impact, supported 115,000 jobs, and inspired similar models in Virginia and North Carolina. With a healthy order book and strong local sourcing, Ferrovial is well-positioned to meet rising demand in cities like Atlanta, Charlotte, and Nashville. Despite higher borrowing costs, updated federal financing programs and streamlined regulations are expanding opportunities. As highways evolve with smart tolling and digital tools, Ferrovial continues to invest in durable infrastructure that benefits communities and stakeholders.

• Construction firms that work on civil infrastructure projects are holding steady as they manage uncertainties, including waning backlog growth and weaker margins, according to FMI’s third-quarter Civil Infrastructure Construction Index (CICI) survey. The CICI reading for the third quarter was 50.8 compared to 52.2 in Q2 2025 – on a 100-point scale. Any CICI reading above 50 indicates that more civil infrastructure contractors see conditions as good than poor. While about 52% of firms surveyed said their work backlogs had risen in Q3 2025 compared to a year earlier, only 25% expected backlog growth in Q4. While civil infrastructure firms expect backlogs to ease, margins remain under pressure from competitive bidding and higher costs. FMI expects firms to focus on project selection and cost controls to improve margins, as higher work volumes are a less reliable profitability boost.
• Nearly a third of US construction firms have been impacted by intensified immigration enforcement in the last six months, according to a recent report by the Associated General Contractors of America (AGC) and the National Center for Construction Education and Research (NCCER). More stringent enforcement has slowed project delivery and left 88% of firms with craft worker vacancies. One-fifth of construction firms surveyed reported that subcontractors had lost workers, 10% reported increases in absenteeism due to actual or rumored enforcement actions, and 5% said jobsites had been visited by immigration agents. Only 10% of firms use visa programs like H-2B due to approval challenges, leaving many vulnerable to enforcement actions. Industry leaders are urging Congress to increase funding for career and technical education and to create a construction-specific visa program to stabilize the workforce and support long-term growth.