Staying competitive in today’s construction market means staying ahead – because rising material costs and unpredictable tariffs aren’t slowing down.
Lumber, steel and concrete prices are jumping 4-6%, and construction materials plus labor now make up about 64% of the cost to construct a home, up from 61%. Every bid feels riskier than ever.
With this kind of pressure, sticking to old habits won’t cut it. Builders who move fast, communicate clearly and get smarter with their finances won’t just survive – they’ll come out ahead. That’s where teaming up with the right partners and smarter purchasing strategies really pay off.
What’s fueling the change: 3 key drivers behind rising material costs
Builders everywhere are feeling the pressure of rising material costs – and while some price fluctuations are normal, today’s increases are part of a much bigger trend. These shifts are largely outside a builder’s control, but understanding what’s driving them is the first step to adapting effectively.
1. Tariffs on key imports
Ongoing U.S. tariffs on Canadian lumber, Mexican drywall (gypsum) and other essential imports are making it more expensive to secure building materials. These tariffs result in higher prices at the jobsite – costs that builders must manage – either by adjusting bids or finding new ways to stay cost-effective.
According to the National Association of Home Builders (NAHB), tariffs on Canadian lumber alone have added thousands to the price of a new single-family home.
Group purchasing organizations, such as CBUSA, are one way to manage these costs. They protect from material pricing volatility caused by tariffs.
2. Global supply chain disruptions
As demand for materials climbs, global supply chains are still recovering from the impacts of the pandemic, climate-related disruptions and political tensions around the world. Shipping delays and shortages of raw materials are making it harder to get what you need, when you need it – especially for specialty items.
All of this leads to project delays, increased holding costs and lost revenue. That’s why builders need partners and tools that make it easier to buy materials and track what’s in stock.
CBUSA helps builders navigate this by fostering stronger supplier relationships. If your first option is delayed or overpriced, you’ve still got reliable alternatives – and peer insights to guide you.
3. Inflation and sustained demand
Even as interest rates fluctuate, the demand for housing remains strong. At the same time, general inflation continues to impact everything from fuel to freight, adding to the overall cost of getting materials to the job site.
Inflation combined with labor shortages makes it difficult for builders to keep bids competitive without losing profit margins.
When working in an inflated market, group purchasing gives you stable pricing and negotiating power.
These three forces are making it harder for builders to predict expenses, protect margins and submit competitive bids. These challenges aren’t going away – and hoping they’ll pass isn’t a strategy.
The cost of doing nothing: why builders need to act now
When builders try to ride out rising costs without adapting, they face these serious risks:
- Shrinking margins that eat into profits and threaten project viability
- Delays that increase holding costs and tie up capital longer than planned
- Cash flow risks that make it harder to cover expenses and fund new projects
Standing still in a shifting market isn’t just risky – it could cost you future growth, or worse, your business. That’s exactly where the right partners – and the right purchasing strategy – can make all the difference.
How CBUSA helps builder regain control over costs
CBUSA empowers builders through group purchasing for builders, turning construction buying power into cost savings and stability. Here’s how CBUSA helps builders manage rising material costs and stay in control amid tariffs on building materials:
- Group purchasing power locks in better pricing and leverages bulk buying discounts that individual builders can’t access alone.
- Pre-negotiated supplier deals reduce bidding risks by providing clear, upfront pricing on materials.
- A strong peer network offers advice and support to help navigate the market’s ups and downs.
- Access to national and local vendors simplifies material sourcing during shortages, keeping projects on schedule.
These benefits give builders the construction buying power they need to stay competitive and in control, no matter the market’s challenges.
Turning challenges into advantages with CBUSA’s group purchasing power
CBUSA’s model isn’t just theory – it’s a proven approach that builders have relied on for years.One such builder is Trey Garner, a long-time CBUSA member who’s used group purchasing to take control of costs and grow with confidence.
Trey, founder and president of Garner Homes in Boerne, Texas, uses national contracts to guarantee material costs.
“We were one of the first CBUSA groups. The idea just made sense – if we pull our purchasing power together with other like-minded custom home builders, we can get better pricing,” Trey said. “That’s always been the goal.”
– Trey Garner, Founder of Garner Homes
And Trey’s not alone. Another example is Dan Morse and Gerry Felton of Triple A Homes in North Carolina. By tapping into CBUSA’s group purchasing power, they’ve gained more predictability and access to national suppliers like Kohler and JennAir.
“CBUSA’s been a big help in not only introducing those contracts, but also giving us the opportunity to offer a superior brand. We offer quality products at the same price another builder is offering a lesser one because of contracts negotiated for us.”
– Gerry Felton, Vice President of Construction of Triple A Homes
Dan and Gerry joined CBUSA for competitive pricing – but discovered the real value is in the relationships.
From North Carolina to Texas, CBUSA is connecting builders across the country who share the same mindset: work smarter, grow stronger and build better – together.
Proactive builders: Join CBUSA and build with confidence in any market
Builders like Dan, Gerry and Trey who partner with CBUSA won’t just weather the instability – they’ll be ready to grow through it. Group purchasing for builders is more than a cost-saving measure; it’s how builders plan for long-term success by tapping into unmatched purchasing power, cutting-edge technology and a strong community of top industry professionals.
Want to protect your margins and outpace the market? Learn how CBUSA helps builders navigate uncertainty with confidence.