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Recent Construction Industry Rodolfo Quirós

Trends

Rate of construction materials price rose
The producer price index (PPI) report from the US Bureau of
Labor Statistics (BLS) stated that construction materials prices
rose 0.3 percent month-over-month in January on a seasonally
adjusted basis. The index of components and materials for
construction was up 1.1 percent from its year-earlier level.
Overall prices for processed goods for intermediate demand
were up 1.0 percent for the month. All of the components
of this index rose, with the prices of processed fuels and

lubricants up 3.5 percent. The overall processed goods for
intermediate demand index was 1.0 percent higher than its introduced to help get Britain building using timber—creating
year-earlier level. economic growth, rural jobs and helping meet housebuilding
For reference, the changes in these indexes compare targets in a sustainable way.
with a 0.5 percent month-over-month rise and a 3.0 percent The TiC Roadmap was first published at the end of 2023.
year-over-year rise in the all-items consumer price index This new and improved version goes even further, highlighting
(CPI-U) in January. the Government’s ambition to boost the domestic timber industry

After rising steadily since July 2024, softwood lumber prices and kickstart the construction sector without compromising on
took a step back in January 2025. The 1.8 percent decline quality, safety or carbon emissions. It also demonstrates how
for the month was the largest of the construction materials the use of timber in construction fits with the government’s
prices that we track. own growth agenda, by encouraging the use of sustainable,
However, its price gain over the last 12 months is the low-carbon building materials and ensuring carbon emissions
largest of the construction materials prices. Unfortunately, are considering during the design, construction and use of
lumber’s price rise resumed in February, with the price on buildings.
February 11 closing 5.8 percent higher than it did 14 January. Using timber in construction is one of the best ways to
Soft plywood prices dropped again this month. In addition, reduce emissions from buildings. Around 25 percent of the UK’s

soft plywood price index was revised lower by 1.1 percent greenhouse gas emissions come from the built environment,
in January 2025. and larger buildings can store up to 400 percent more carbon
when built out of engineered timber products compared to
UK to increase the use of timber in construction building with concrete. However, 80 percent of the timber the
Ambitious new plans to increase the use of timber in construction UK currently uses is imported.
were announced by Environment Minister Mary Creagh at Key updates to the Roadmap place greater acknowledgement
the Timber in Construction Summit in London, according to on the importance of reuse and species diversification, as well

buildersmerchantsnews.co.uk. as revealing powerful actions to create a low-waste circular
The new Timber in Construction (TiC) Roadmap is being construction sector and drive further investment into domestic