Construction material costs continued to rise in 2026, and lead times split in two directions. Here is the read, as of August 2026.
What the Cost Data Shows
Through June, the producer price index for inputs to nonresidential construction was up 7.1 percent year over year, according to the Associated General Contractors of America's analysis of U.S. Bureau of Labor Statistics Producer Price Index data. The headline number does not tell the whole story. Aluminum mill shapes were up 52.4 percent, copper and brass mill shapes up 26.0 percent, and steel mill products up 16.9 percent over the same period.
For Atlanta commercial projects, those increases work their way into electrical systems, HVAC, metal framing, ceilings, doors and other building components. The biggest exposure may be in projects heavy on mechanical, electrical and plumbing work, where rising copper, aluminum and steel costs can have an outsized impact on budgets. The same AGC analysis notes that contractors' bid prices rose just 3.5 percent over the year, about half the increase in input costs, which means contractors have been absorbing much of the difference so far. That cushion does not last forever.
What We Are Seeing on Current Quotes
Light-gauge framing on the packages we are quoting now is running shorter lead times than it did last year. Millwork lead times are steady, with nothing unusual on the horizon.
Insulated glass is the one to watch. Lead times are running longer in recent quotes, and longer still when the color is not standard. Industry lead-time tracking from Terrapin Consulting Group's 2026 commercial construction materials report shows the same split: some framing and structural categories easing while glazing and specialty glass remain extended, per AC Glass's commercial glazing timeline guide. Structural steel is a different animal from light-gauge framing on both cost and lead time; treat it as its own line item.
What to Do About It
Know which materials your project is most exposed to, understand how long your pricing is valid, and identify opportunities to lock in critical material and equipment costs early.
And if your project has glass in it, confirm the lead time before you set your move-in date. Build the order date into the schedule, not the other way around. The certificate of occupancy date slips one day for every day a critical material sits unordered.
The Read Continues
This is part two of a month-long read on the Atlanta commercial buildout market. Labor ran in part one. Subcontractor pricing is next, wrapping into our one-page Atlanta Commercial Construction Market Brief on August 26. Contact us if you want it the day it drops.