It will lead to higher house prices.
Almost all builders have experienced a jump in raw materials costs.
The rise, reported in a new survey, will likely feed into higher house and home repair prices.
It comes as building costs globally are on the rise due to disruption caused by Covid.
Representatives from the building sector expect costs to continue rising for the foreseeable future.
A new survey from the Construction Industry Federation found the price of building materials rose for almost all companies in the industry last year.
The industry says the government can help by bringing down the cost building for developers, which will then reduce prices for consumers.
"There is substantial inflation right across the board, even in our fuel prices, "said Tom Parlon.
Parlon said that the sector is struggling to hire qualified workers, and that a number of campaigns have been launched to entice people back to the sector.
Director General, Construction Industry Federation, Tom Parlon spoke with Clem Ryan on this morning's Kildare Today:
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