Producer Price Index Signals Mounting Cost Pressures for Glass Companies

Glass and glass product manufacturing prices rose in July. According to the Labor Department’s monthly Producer Price Index (PPI), the cost of glass and glass product manufacturing jumped by 1.5%, ending several relatively stable months in the sector. On a year-to-year basis, the index for glass products and their manufacturing was up 3.1% compared to July 2024.

The PPI helps economists and businesses understand the cost trends associated with flat glass production and architectural metal products. It is important for pricing decisions and analyzing broader economic conditions.

Over the past four months, the PPI for glass and glass product manufacturing was:

• March: 0%

• April: -0.6%

• May: 0%

• June: 0.1%

Construction Prices Inch Up
On the construction front, input prices increased 0.4% in July and were up 2.2% compared to July 2024. Nonresidential construction input prices were 2.6% higher than they were in July of last year and were up 0.4% from June.

“Construction materials prices continued to increase too quickly in July,” says Associated Builders and Contractors (ABC) chief economist Anirban Basu. “Nonresidential input prices have risen at a 5.8% annualized rate since January, and trade policy will likely continue to put upward pressure on materials prices over the next several months. Copper wire and cable prices, for instance, surged 5% in July and are now up 12.2% over the past year. While contractors remain relatively upbeat, according to ABC’s Construction Confidence Index, input price escalation may diminish profit margins during the final months of the year.”

The overall PPI for final demand increased by 0.9%, the largest increase since June 2022. In the 12 months through July, the PPI increased 3.3% after advancing 2.4% in June.

Glass and Glazing Material Prices

Flat Glass—Flat glass prices rose for the third straight month, increasing by 3.1%. This follows June’s increase of 0.2%. Year to year, flat glass prices were up 2.8% compared to July 2024.

Flat Glass Manufacturing—The PPI for flat glass manufacturing rose by 2.1% in July. It’s the third consecutive month that the costs of flat glass manufacturing have risen. On a year-to-year basis, the PPI for flat glass manufacturing was up 4.9% compared to July 2024.

Fabricated Structural Metal Products—The index for fabricated structural metal products remained flat in July. This follows a 0.7% increase in June. Year to year, the price of fabricated structural metal products was up 5.9% compared to July 2024.

Ornamental and Architectural Metalwork—Ornamental and architectural metalwork prices were unchanged in July, ending two months of declining prices. The year-to-year PPI for the index was up 9.2% compared to July 2024. Ornamental and architectural metalwork manufacturers develop architectural metalwork, including handrails, balcony rails, screen doors, window guards and other architectural fittings.

Metal Windows—The price of metal windows jumped by 2.2% in July, nullifying a 0.1% decrease in June. On a year-to-year basis, metal window prices were up 3.8% compared to July 2024.

Metal Doors and Frames—Metal door prices were flat in July, softening the blow of a 1.5% increase in June. Year-to-year prices for the commodity were up 5% in July compared to July 2024.

Builders’ Hardware—For the third consecutive month, the price of builders’ hardware products (lock units, key blanks and door and window hardware) increased by more than 2%. In July, the index rose by 2.5%. This follows a 2.3% increase in June and a 2.4% increase in May. Year-to-year prices for builders’ hardware products were up 10% in July compared to July 2024.