Investigating Price Fluctuation Transmission among Construction Materials

Mohamad Abdul Nabi, Islam H. El-Adaway, Rayan H. Assaad

Research output: Chapter in Book/Report/Conference proceedingConference contribution


Generally, fluctuation in one material's price can cause a series of chain reactions in the supply chain system, known as price fluctuation transmission, as all materials are interconnected and interrelated. None of the previous studies have investigated price fluctuation transmission among all construction materials. This paper aims to fill this gap in knowledge. The authors collected producer price index (PPI) data for 16 construction materials, modeled the relationship between each pair of materials using vector autoregression technique, and validated the causality using Granger causality test. Network analysis was performed to identify the price fluctuation transmission capacity, susceptibility, and intermediatory capacity for each material. The results showed that the materials with the highest price transmission capacities include (1) "fabricated structural metal products"; (2) "construction sand, gravel, and crushed stone"; and (3) "plastic construction products." Ultimately, it is concluded that significant changes in the price of these materials can be an indication of price escalations in the supply chain and other construction materials. This paper provides industry practitioners with an unprecedented framework that highlights materials that can act as early warning signs for overall price fluctuations in the construction industry.

Original languageEnglish (US)
Title of host publicationContracting, Delivery, Scheduling, Estimating, Economics, and Organizational Management and Planning in Construction
EditorsJennifer S. Shane, Katherine M. Madson, Yunjeong Mo, Cristina Poleacovschi, Roy E. Sturgill
PublisherAmerican Society of Civil Engineers (ASCE)
Number of pages11
ISBN (Electronic)9780784485286
StatePublished - 2024
EventConstruction Research Congress 2024, CRC 2024 - Des Moines, United States
Duration: Mar 20 2024Mar 23 2024

Publication series

NameConstruction Research Congress 2024, CRC 2024


ConferenceConstruction Research Congress 2024, CRC 2024
Country/TerritoryUnited States
CityDes Moines

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Building and Construction


Dive into the research topics of 'Investigating Price Fluctuation Transmission among Construction Materials'. Together they form a unique fingerprint.

Cite this