| BROOKSTONE INDUSTRIES | June 1, 2026 · Vol. 1, Issue 3 |
BRIEF.
Welcome to the June edition of The Brookstone Brief. This month: a PA energy code deadline that affects every job going for permits after July 1, six months of sustained metal price increases and what the June 8 tariff adjustment actually changes, and a straight talk on escalation clauses — the contract language that keeps a rising copper market from eating your margin.
| Local Intelligence |
A code deadline, a bid pipeline opening up, and a labor market that’s still making life difficult — here’s what’s worth paying attention to in the region heading into Q3.
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The Justice Center Bid Is Coming — Watch PennBid
Lancaster County’s $400M+ justice center replacement is expected to go out for bids later this year. A project that size — new build, institutional, multi-year — means mechanical and HVAC scope that doesn’t come around often locally. If you’re not already registered on PennBid, that’s the system Lancaster County uses to post public bids. Getting on the notification list now costs nothing. Missing the posting because you weren’t registered does. Source: Lancaster Online |
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Labor Is Still the Bottleneck
Lancaster County unemployment has been below 3% for five straight years. There’s no sign that changes soon. Committing to a start date you can’t staff is a worse outcome than pushing back during the bid. The shops that are honest about lead times and crew availability are the ones GCs keep calling. |
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Heads Up: PA Energy Code Changes July 1
Any permit submitted on or after July 1 must comply with the 2021 IECC — tighter equipment efficiency requirements, mandatory ERVs on new residential units, and stricter commissioning standards. If you’re quoting jobs that won’t hit the permit desk until July or later, worth a quick call to your supplier to confirm equipment specs before you finalize pricing. Source: ReVireo / PA UCC Update |
| National Construction Outlook |
The most recently published AIA/Deltek Architecture Billings Index — released in May, covering April activity — came in at 48.3, pulling back from the near-threshold 49.8 in March. The index has been below the 50-point growth line for 27 consecutive months. On the positive side, project inquiries rose for the third straight month and the value of new design contracts is close to returning to growth. ABC’s Construction Backlog Indicator moved up to 8.8 months in April, a ten-month high.
The data center story continues to distort the headline numbers. Contractors with over $100M in annual revenue working on data center projects are reporting backlogs well above the overall average — 42% of that group has active data center work. For contractors in healthcare, institutional, or general commercial work, the aggregate numbers don’t reflect their pipeline. The broad recovery hasn’t arrived yet.
Source: AIA/Deltek ABI (released May 2026) · ABC Construction Backlog Indicator April 2026 · AGC
| ★ Special Focus · June 2026 |
Aluminum, steel, and copper have all posted sustained year-over-year increases since tariff expansions took effect. The June 8 adjustment brought limited relief — some HVAC equipment and industrial machinery moved to a 15% rate — but the core 50% tariff on goods made primarily of steel, aluminum, or copper remains in place. For ductwork, pipe, and structural metal, nothing has changed.
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+33%
Aluminum mill shapes
YOY (AGC) |
+30%
Copper YOY
(LME, June 5) |
+21%
Steel mill products
YOY (AGC) |
U.S. HRC STEEL — $/TON · DEC 2024 TO JUN 2026
$600
$800
$1,000
$1,200
+70%
Dec '24 → Jun '26
25% tariff
Jan '25
50% tariff
Apr '26
~$1,105/T
Dec '24
Mar '25
Jun
Sep
Dec
Mar '26
Jun
Source: CME Group / Trading Economics / Nucor Weekly CSP · US Midwest Domestic HRC · Approximate monthly values
| Material | Trend | What to Watch |
|---|---|---|
| Aluminum | ↑↑ | Mill shapes +33% YOY. LME prices remain elevated; analysts see further upside potential over the next 12–18 months. Core 50% Section 232 tariff unchanged June 8. (AGC, 2026) |
| Structural Steel | ↑↑ | Mill products +21% YOY. Full customs value applies to imported articles per the April 6 restructure. No relief from June 8 adjustment for primary steel articles. (AGC, 2026) |
| Galvanized Sheet | ↑ | Prices remain elevated year-over-year. Majority of HARDI distributors continue to expect further increases in H2 2026. Lock in pricing where possible on jobs with longer timelines. (Steel Market Update) |
| Copper | ↑↑ | LME spot $13,479/tonne as of June 5 — up ~30% YOY. Tight LME inventories and strong Chinese demand keeping upward pressure. 50% tariff on copper-primary goods unchanged. (Trading Economics, LME) |
| Diesel / Fuel | ↑ | Fuel prices remain elevated relative to historical norms, adding delivery and logistics cost to material pricing. Factor into all-in delivered pricing on large or multi-phase jobs. (EIA) |
| Lumber | ↓ | Futures remain soft, held down by weak housing starts. One bright spot in an otherwise difficult input cost environment. Window may narrow if housing recovers. (Trading Economics) |
The June 1 White House order adjusted tariff rates for select product categories effective June 8: some residential HVAC equipment and industrial machinery moved to a 15% rate (down from 25%), and products with 15% or less metal content by weight are no longer subject to Section 232 metals tariffs. The threshold to qualify as “American metal” was also lowered from 95% to 85% by weight. For ductwork, structural steel, copper piping, and galvanized sheet — the core of mechanical and sheet metal fabrication — the 50% tariff structure is unchanged.
Sources: AGC Feb 2026 · Trading Economics (LME Copper) · White House June 1, 2026 · Steel Market Update
the Contract.
Aluminum up 33%, copper up 30%. Whether your contracts give you a way to recover those costs comes down to two things: escalation clauses and change order discipline. Neither is complicated. Both are consistently under-used.
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1.
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Escalation clause on any job over 90 days. Tie metal pricing to a published index at time of purchase, not at bid. If the index moves past a defined threshold (typically 5–10%), the difference passes through to the owner. Without it, you own the spread. |
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2.
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Name the index. Define the threshold. Vague language invites disputes. Reference the BLS PPI by series number — aluminum mill shapes (WPU101503), copper and brass mill shapes (WPU102501) — set a clear trigger percentage, and specify the notice period. Specific language holds up with any GC or owner. |
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3.
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Shorten your quote window. 15–21 days is more defensible than 30–60 on metal-intensive scope right now. If they need a longer hold, a price hold fee is a reasonable ask. |
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4.
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Issue the change order for spec changes, design changes, and added scope. Owner-directed gauge upgrades, material substitutions, design revisions that add metal content — price and document it immediately. Change orders issued in writing get approved. Change orders raised at closeout become disputes. |
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Escalation Clause
Covers market-wide price movement between bid and delivery. Tied to a public index, triggered by a defined threshold.
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Change Order
Covers spec changes, design changes, and added scope. In writing, promptly. Standard markup of 15–25% is defensible.
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Escalation language negotiated upfront is a much easier conversation than cost overruns at the end of a job.
| Talk to Us About Your Next Job → |
Questions about lead times, material holds, or how we quote in a volatile metals market? We’re happy to walk through it.
| Tip of the Month |
If you’re writing escalation clauses into your contracts, the Bureau of Labor Statistics Producer Price Index is the most defensible reference point — it’s public, monthly, and accepted by virtually every GC and owner as an objective benchmark. Here are the three series most relevant to mechanical and sheet metal work:
| 1. | Aluminum mill shapes — WPU101503. The primary benchmark for ductwork, fittings, and extruded aluminum components. Up 33% YOY as of the most recent published data. |
| 2. | Copper and brass mill shapes — WPU102501. The standard reference for copper piping, fittings, and tubing. LME spot and this PPI series track closely — use whichever your GC will accept. |
| 3. | Steel mill products — WPU101. Covers structural steel and cold-rolled sheet. Up ~21% YOY. For galvanized sheet specifically, Steel Market Update’s published spot price is also widely referenced in the trade. |
| In the News |
A few headlines shaping the industry right now.
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White House · June 1, 2026
Tariff adjustment effective June 8 — select HVAC equipment, agricultural machinery, and low-metal-content products move to a 15% rate. Core 50% tariff on primary steel, aluminum, and copper articles remains. Limited relief for the mechanical trades.
Read more →
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Construction Dive · June 2026
Metals pressure stays on construction — the June tariff update brings targeted relief without a broad reset. Steel, aluminum, and copper costs remain a live risk for bids, procurement, and margins in 2026.
Read more →
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AIA/Deltek · May 2026
ABI retreats to 48.3 in April — softening from March’s near-threshold 49.8. Institutional and multifamily firms show modest growth; commercial and general commercial remain below the 50-point line for the 27th straight month.
Read more →
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Lancaster Online · 2026
$400M+ Lancaster County justice center moves toward bid — county commissioners expect to send the project out for bids in 2026, with the new facility targeted to open by early 2029. Significant trade scope expected across mechanical, electrical, and structural work.
Read more →
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Wall Street Journal · June 8, 2026
Nippon Steel investing $2B–$2.5B to rebuild U.S. Steel’s oldest Pennsylvania mill — the 88-year-old hot-strip mill at Mon Valley Works near Pittsburgh is being replaced with a new line capable of producing 3.5 million tons of sheet steel per year, up from 2.2M. Construction starts later in 2026. The project is expected to generate 6,000 jobs and $1.7B in economic activity for Pennsylvania — a meaningful boost to domestic sheet steel supply for auto, appliance, and pipeline markets.
Read more →
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Pricing a job with significant metal scope? Get your quote in while our schedule has openings — we can talk through material timing and what’s realistic for H2 delivery.
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| ✉ sales@brookstoneind.com |
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