Does inflation largely consume efficiency gains?

Prices rise over time, yet we constantly find more innovative ways to create things, speed up processes, and increase the durability of products.

For example, the ability to cut, ship, and treat wood are all forces that would seemingly put downward pressure on prices. The ability to work with wood on the actual building side has also increased. In commercial construction, I remember the average project taking around 5 years, yet now it’s quite typical for similar projects to be completed in 2. However, costs have still risen dramatically alongside the ability to get things done faster.

If productivity and efficiency continue improving, where do those gains go if prices still climb around ~2% annually?

Why doesn’t increasing supply and productivity place stronger downward pressure on prices?