Q1 2026 Cost Index Report

Lead times across most equipment categories have stabilized and are generally tracking within predictable ranges. The majority of materials are being delivered as scheduled, with delays remaining infrequent, short in duration, and limited to specific equipment types rather than widespread issues.

While overall conditions reflect improved supply chain performance, lead times have not uniformly improved across all categories. Several equipment types continue to show extended upper ranges, indicating ongoing variability in worst-case delivery scenarios.

Supply chain conditions remain stable, with most equipment and materials delivering within expected timeframes.

Tariffs continue to influence pricing, particularly for equipment with exposure to steel, aluminum, copper, and imported electrical components. Recent U.S. trade policy updates in April 2026 reinforced tariffs on these key materials, sustaining cost pressure across both electrical and mechanical equipment.

While these impacts are largely embedded in current pricing, they continue to drive cost variability, shorten bid validity periods, and reduce overall pricing certainty.

Emerging geopolitical risks are introducing new uncertainty into global logistics and material flows.

While widespread shortages have not materialized, risk is increasing for equipment with high exposure to global freight, petroleum-based inputs, and international supply chains. Manufacturers are adjusting sourcing and production strategies, but these changes have not yet led to broad supply disruption.