By: Alex Carrick, Chief Economist on June 30th, 2021
Canada No Slouch When It Comes to Construction Material Cost Hikes
In recent weeks, I’ve written several articles dealing with U.S. outsized construction material cost increases. (See Latest PPI Results Show Construction Material Cost Increases Still Alarming and Shockingly High Material Cost Hikes Set Out in 2 Tables & 24 Graphs.)
Contractors north of the border, though, I’m sure would like similar data on the Canadian experience. Table 1 is the response.
The U.S. figures on percentage changes in building materials and related cost climbs are derived from the Producer Price Index data set calculated and published by the Bureau of Labor Statistics.
The best means to achieve Canadian equivalency is to draw on the Industrial Product Price Index data set from Statistics Canada.
The most dramatic price increases in Table 1, both year over year and during the last three months for which numbers are available, have been pointed out with red arrows.
Basically, it’s the prices attached to the same components in Canada as in the United States that are rapidly sprinting upwards: lumber, plywood, and other forestry products; steel and its inputs; gasoline and diesel fuel; and wire and cable made of copper.
Based on Industrial Product Price Index (IPPI) Series from Statistics Canada
About Alex Carrick, Chief Economist
Alex Carrick is Chief Economist for ConstructConnect. He has delivered presentations throughout North America on the U.S., Canadian and world construction outlooks. Mr. Carrick has been with the company since 1985.