New research today show that 96% of construction companies have reported a rise in the cost of building materials between June and August this year.
85% of building firms also expect cost rises to continue until the end of the year, the latest Construction Industry Federation Economic Outlook research shows.
This comes as the Government plans to impose a 10% levy on concrete products.
Today's report also says that the increasing cost of materials was cited as the top concern for companies over the next three to six months (86%), followed by access to skilled labour and cost of labour (both 72%), securing a healthy profit margin (69%) and the cost of fuel (67%).
Just 12% of companies said they believe that the Government's inflationary measures introduced between January and May of this year have been effective.
CIF said it believes the main reasons for this are a lack of engagement and awareness from contracting authorities.
88% also hold the view that the increased cost of building new homes will have a negative impact on housing supply in 2023.
But despite the challenging trade environment, today's report said the industry remains resilient, with a significant number of companies expecting to increase their turnover and staff.
76% of construction companies said their turnover has stayed the same or increased over the last three months, with 35% reporting an increase.
82% of companies surveyed reported that staffing levels had increased or stayed the same, with this trend expected to continue for the remainder of the year.
Tom Parlon, the Director General of the Construction Industry Federation, said that cost increases are having a significant impact on the construction industry, with rises in the cost of materials, labour and energy.
He also said the Government's recent budget announcement of a 10% levy on concrete products is out of step with the needs of public consumers and construction companies at a time when "extraordinary inflationary factors" are driving costs up across society.
"We understand the issue the Government is seeking to address around the faulty product that was supplied into the construction sector, but we are concerned that this measure will result in additional costs for first-time buyers, people trying to extend their homes, affordable and social houses and public infrastructure projects, as it will drive costs up along the supply chain," he stated.
The CIF's annual conference will take place in Croke Park tomorrow, with 500 delegates from across the sector expected to attend.