The Q3 2025 Cost Index has risen to 233

The MEP Cost Index rose to 233 in Q3 2025, continuing its steady upward trend from 227 in Q2. The increase reflects material cost escalation, persistent sector demand, and supply chain volatility from tariffs and shifting logistics.

Estimated Equipment Lead Times Varies Due to Equipment Sizing
Equipment Type	Previous	Current
Cooling Towers	12-25 weeks	10-25 weeks
Chillers (Air Cooled)	12-75 weeks	28-42 weeks
Chillers (Water Cooled)	12-75 weeks	12-47 weeks
AHU	12-60 weeks	14-55 weeks
Generators	40-130 weeks	40-130 weeks
Switchgear	45-70 weeks	45-80 weeks
UPS	30-42 weeks	30-42 weeks
Lighting Fixtures	10-16 weeks	8-16 weeks
Lighting Controls	12-26 weeks	12-26 weeks

OEMs Expanding Domestic Manufacturing

Major equipment manufacturers are increasing U.S. production to reduce reliance on imports amid rising tariffs and global supply chain risks. This reshoring trend is expected to gradually improve lead times and stabilize pricing through 2026.

Tariffs Driving Rapid Price Adjustments

New and expanded tariffs on electrical and mechanical components are prompting manufacturers to raise prices, with costs for copper, aluminum, and other materials up 5–10%. Buyers should anticipate mid-cycle price escalations and plan accordingly.

Data Centers and Defense Sustain Market Momentum

AI data center and federal defense projects continue to drive strong demand across the MEP market, keeping production and procurement pipelines active through late Q3 2025.

Equipment Lead Times: Still Long, Still Volatile

Despite improvements in some product categories, critical-path MEP equipment like switchgear and generators continues to face unpredictable lead times and pricing fluctuations due to supply chain realignments and tariff effects.

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Average Index History

Q3 2025 Cost Index Report