Construction material costs increased 8.3 percent in June compared to the same time last year, according to a recent report from the Associated General Contractors of America.

Contractors have been unable to recoup the costs through higher bid prices, according to a statement. Association officials said the ongoing cost squeeze will put new pressure on construction firms to reduce staff and possibly close.

"All of these materials are in worldwide demand, with supplies that are either tight or threatened by international turmoil," said Ken Simonson, the association’s chief economist.