The escalating price of metal is transforming the U.S. construction industry, significantly impacting sectors that depend on steel and aluminum, particularly roofing and exterior contracting.

In the Midwest, hot-rolled coil prices soared by 12% in the last two weeks, now at approximately $839 per short ton — a 20% rise since the new administration assumed office, according to the National Association of Home Builders.

At the same time, aluminum prices are surging quickly. The recent Aluminum Monthly Metals Index report indicates that U.S. Midwest aluminum premiums have hit their highest point in over a year. 

The report notes a mix of tariff policies and global production reductions has further fueled the rise in aluminum, impacting industries from construction to transportation.

These increases are more than headline news for companies fabricating metal components for everything from automobiles to building exteriors. 

Roofing contractors, in particular, are now grappling with higher costs for metal roofing panels, gutters, flashings, and other crucial elements. 

While domestic steel producers have welcomed the tariffs to protect against low-cost imports, companies reliant on these metals, like roofing contractors, feel the impact. 

According to the NAHB, general contractors estimate that recent tariffs could increase the cost of building a typical home by about $9,200, covering expenses for framing, cladding, metal roofing, and siding.

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Steel

Roofing and exterior contracting firms have long relied on steel and aluminum for their durability, corrosion resistance, and aesthetic appeal. 

The Metal Roofing Alliance reports that metal roofing accounts for 18% of the residential market, with steel accounting for 82% of that figure. 

Additionally, it occupies a considerable portion of high-end residential and commercial projects. Nonetheless, the increasing costs of essential materials have driven expenses higher than in the past. Contractors indicate that the price of aluminum, frequently utilized for gutters and flashings, has significantly risen, compelling many to reevaluate project bids and modify profit margins.

For example, the cost of installing gutters has increased, typically from $600 to $1,800 based on the project's specifics, as Jonathan Marsh, a former servicemember and owner of Tier-One Roofing in Oklahoma, noted.

Many roofing companies have started to pass on these increased costs to customers.

The higher prices have also slowed down new project initiations, as uncertainty about future tariff policies makes it difficult for companies to lock in costs or negotiate long-term contracts.

According to the NAHB, tariffs on imported materials are undermining builders' and contractors' confidence. 

A recent survey revealed that increasing material costs, particularly for items such as metal roofing and exterior cladding, are significantly depressing their overall outlook on future projects.

Joseph Taylor, CEO of Matrix Development, a warehouse developer in New Jersey, noted that his company is facing increased steel prices he needs to build a warehouse in Newark, N.J.

"I can tell you steel is up 8 to 10%" for the project, Taylor told Business Insider, adding that the increases had driven up the planned building's costs by about $2 million.

Industry experts say global markets affect the prices of commodity goods, such as metal and common fabricated products like rebar and steel wall framing used in real estate development. The tariffs have pushed up costs, even for goods made domestically.

"What you did is you hamper competition, so the domestic people simply just raised their price where they can," Dain Drake, a principal at DeSimone Consulting Engineering, whose focus includes sourcing structural steel for commercial development, explained the business publication.

Drake noted that quotes for fabricated steel he is procuring for a Houston manufacturing plant expansion have recently risen by 20%, reflecting market-wide increases. The contractor, needing to pass this cost to the customer, was surprised and "not happy" about the new quote.

Facing these mounting pressures, many companies have begun to explore alternative strategies. As Roofing Contractor reported, some roofing contractors are stockpiling supplies in anticipation of further price hikes or policy changes. 

Steel-based Roofing and Exterior Components include:

• Roof Panels: Serve as the primary roofing surface in many commercial and residential buildings.
• Purlins: Act as horizontal supports, spanning between the main structural members to support roof panels.
• Trusses: Provide the overall framework for the roof, ensuring structural stability.
• Gutters and Downspouts: Manage water runoff effectively, channeling it away from the building.
• Flashing: Used at roof joints and around penetrations to prevent water infiltration.
• Cladding/Siding: Often used to cover building exteriors due to its durability and low maintenance.
• Railings and Balustrades: Commonly installed on decks, stairs, and balconies for safety and aesthetic appeal.

Aluminum

The latest Aluminum MMI report indicates that some buyers are securing aluminum supplies at higher premiums, fearing additional market volatility in the coming months.

The aluminum market has started to settle following a sharp uptrend in U.S. premiums that began late last year. 

Since the start of Q4 2024, the aluminum Midwest premium and its three-month futures contract rose 107% and 90%, respectively. The premiums’ bull trend came as markets began to price in President Trump's election.

An even sharper spike followed the White House’s 25% steel and aluminum duties and the fluctuating on-and-off 25% tariffs on Canadian and Mexican imports. This saw buyers rush back into the market to secure material free of duties.

Aluminum-based Roofing and Exterior Components Include:

• Roof Panels: Widely used as the main covering element.
• Flashing: Installed around roof penetrations and joints.
• Gutters: Often used for water management along roof edges.
• Ridge Caps: Serve as the finishing element atop pitched roofs.
• Cladding/Siding: Lightweight, corrosion-resistant, low-maintenance finish for building facades.  
• Soffit: Installed under eaves provide ventilation and moisture protection.
• Window Frames and Trim: Enhance energy efficiency and provide a sleek, modern aesthetic.

Copper

Copper prices have been volatile since January, as prices surged roughly 20–25% amid fears of import penalties pushed U.S. demand into overdrive, decoupling the metal’s price from its underlying fundamentals.

Despite reports that such policy-driven moves resulted in built-up inventories, future forecasts remain divided. JP Morgan anticipates that a tariff — initially around 10% by the late third quarter of 2025 and potentially rising to 25% — will tighten global supply, pushing copper prices to an average of about $11,000 per metric ton in 2026. 

In contrast, Goldman Sachs scaled back its 2025 forecast to around $10,100 per ton, according to the Financial Times, citing softer-than-expected Chinese demand and rising inventories as headwinds.

Data from Today’s Homeowner indicates that the cost of installing copper roofing systems has surged, now standing between $15 and $30 per square foot — a notable rise from historical levels. In a typical roofing project of 2,000 square feet, these hikes have nearly increased total material expenses by 20%, highlighting the recent fluctuations in the copper market. 

Roofing contractors have noted that these escalating costs compel them to reassess their bidding strategies, often leading them to either absorb the additional costs or transfer them to customers, which could impact competitive pricing.

tes that the cost of installing copper roofing systems has surged, now standing between $15 and $30 per square foot — a notable rise from historical levels. In a typical roofing project of 2,000 square feet, these hikes have nearly increased total material expenses by 20%, highlighting the recent fluctuations in the copper market. 

Roofing contractors have noted that these escalating costs compel them to reassess their bidding strategies, often leading them to either absorb the additional costs or transfer them to customers, which could impact competitive pricing.

Copper-based Roofing and Exterior Components include:

• Standing Seam Copper Roofs: Seamless copper panels for a sleek design and effective water shedding.  
• Copper Shingles: Individual copper shingles are installed in an overlapping pattern, offering a textured look.
• Flat Lock Copper Roofing: Interlocking copper panels form a flat surface for low-slope roofs, enabling varied orientations.  
• Standing Seam Copper Wall Panels: These panels install vertically or horizontally, providing a modern look and durability. 
• Copper Screen Panels: Facade panels are decorative or sun-shading elements in perforated or patterned designs.
• Formed Copper Cladding: This approach employs hydroforming and laser cutting for intricate designs, such as embossed patterns and organic shapes, enabling unique architectural expressions. 

Broader Economic Ripples

Rising metal prices have ramifications well beyond the roofing and exterior contracting sectors. 

The tariffs and price increases affect multiple downstream industries, from roofing system components and automotive manufacturing to consumer electronics. 

The Aluminum MMI report suggests that if supply constraints persist, aluminum prices could continue their upward trajectory well into the second half of 2025, compounding economic pressures.

If these trends persist, financial analysts have said consumers will encounter rising prices for everyday items. 

The result would likely be a drop in purchasing power, lower discretionary spending and an additional slowdown in economic growth. 

Many economists have forecasted that prolonged high costs for essential metals might lead to a mild recession, particularly if global trade tensions escalate and consumer confidence diminishes.

5 Takeaways

• Metal Price Surge Disrupts Construction: Rising steel and aluminum costs are reshaping the U.S. construction industry, significantly impacting roofing and exterior contracting businesses. 
• Tariffs Drive Up Costs: Trade policies, including tariffs on imported steel and aluminum, have contributed to price increases, forcing contractors to either absorb higher costs or pass them on to customers.
• Slowdown in New Projects: Rising material costs are delaying new construction projects, as uncertainty over future pricing makes it difficult to finalize budgets and contracts.
• Exploring Alternative Materials: Some builders are turning to hybrid systems and alternative materials, such as metal-plastic composites, to mitigate the financial impact of soaring metal prices.
• Wider Economic Consequences: The metal price surge extends beyond construction, potentially affecting consumer prices, purchasing power, and overall economic growth. Some economists are warning of a possible mild recession.

For many in the roofing sector, the key challenge is balancing the need to maintain quality and durability with the pressure to control costs. 

Some contractors are choosing to absorb some of the increased costs to retain customer loyalty, while others are forced to pass on the higher prices — risking a slowdown in new projects.

Another strategy involves using alternative materials or hybrid systems that combine metal with cheaper options. Some builders are experimenting with metal-plastic composites for lighter components, reducing reliance on pure metal. 

While these alternatives may not fully replace steel and aluminum, they can help mitigate cost increases.