High Mechanical Equpment Costs In Construction Projects

12 March 2025

The construction industry continues to grapple with escalating costs, and mechanical equipment remains the most volatile sector. Unlike other trades, which have shown some signs of stabilization, mechanical equipment costs have yet to normalize since COVID-19.

Key Cost Increases

(Data from FBM Foundation Building Materials)

At Solutions Architecture, we recognize that bidding and budgeting strategies must evolve. Here are key approaches to mitigate rising costs:

• Steel Products: Minimum 10% increase, with additional increases expected.
• Aluminum Products: Up 25%, putting additional pressure on project budgets.
• Mechanical Equipment: The only trade that has not normalized, with unit ventilators, HVAC systems, and other mechanical components experiencing ongoing price surges.

Why Are Mechanical Costs Still Rising?

1. Supply Chain Disruptions – Critical components like compressors, coils, and motors remain in short supply, driving prices higher.
2. Increased Demand – The push for energy-efficient systems and school ventilation improvements has kept demand strong.
3. Labor Shortages – Skilled mechanical contractors remain scarce, adding further pressure to project budgets.
4. Material Costs – Copper, aluminum, and steel, all essential in HVAC and mechanical equipment, continue to see elevated pricing.

Navigating the Challenges

• Early Procurement: Locking in pricing and securing materials well in advance can help mitigate risks.
• Alternative Solutions: Exploring different manufacturers and specifying adaptable systems may reduce exposure to price surges.
• Flexible Scheduling: Projects that allow more extended lead times may see better pricing as supply chains stabilize.

With mechanical equipment costs remaining high, careful planning and strategic procurement are essential. Staying informed about material pricing trends and adapting project timelines accordingly can help school districts and contractors navigate the ongoing volatility in mechanical system costs.