7
Oct

Based on IPPI and RMPI Results, Canada's Construction Material Costs +3.5% Yr/yr – Daily Commercial News

The Industrial Product Price Index (IPPI) and Raw Materials Price Index (RMPI) series from Statistics Canada indicated a year-over-year increase in total construction material costs of +3.5% in July.

The pace of change varied to some degree depending on the type of construction.

Engineering/civil projects experienced the fastest y/y climb in building material costs, +4.1%, followed by residential, +3.2%. By comparison, non-residential building plodded ahead, +2.9%.

It’s interesting that the IPPI and RMPI figures for Canada yielded almost the same y/y ‘total construction’ increase (+3.5%) as was generated by the Census Bureau’s latest Producer Price Index (PPI) survey results for the U.S. (+3.3%).

Table 1 sets out price index changes over five time periods for major building product categories.

Concentrating first on the largest y/y increases, double-digit percentage-rate hikes have been registered by: ‘veneer and plywood’, +12.1%; ‘waferboard and particle board’, +16.8%; ‘natural gas’, +12.4%; and ‘iron ore’, +15.5%.

Other material groups with sizable y/y jumps have been: softwood lumber, +6.8%; ‘shakes, shingles and wood siding’, +6.9%; ‘ready-mix concrete’, +5.3%; ‘metal roofing’, +7.3%; ‘gypsum’ +6.9%; and ‘stone’, +5.1%.

The price indices for ‘softwood lumber’, ‘veneer and plywood’ and ‘metal roofing’ have been particularly elevated relative to six months prior, with eruptions of +8.4%, +13.0% and +6.4% respectively.

Versus three years ago, four products in the energy sphere were down by about one-quarter or more: ‘natural gas’, -23.0%; ‘asphalt’, -24.7%; ‘gasoline’, -26.6%; and ‘diesel fuel’, -29.1%.

Moving up by one-quarter to nearly one-third over the past three years have been: ‘prefabricated metal buildings’, +26.7%; ‘waferboard and particle board’, +29.6%; and ‘gypsum’, +32.0%.

Graphs showing index histories for many building materials can also be found below.

Many of the graphs feature long-term upward sloping index values.

The ‘glass and glass products’ chart, however, is a little different. While it has a fitted trend line with a noticeable incline, the ‘actuals’ curve has been flat for the past two years.

To place the foregoing figures in context, consider that the nation’s latest all-items Consumer Price Index (CPI) is up by a tame +1.4% y/y.

In a two-horse race, construction materials pricing is several lengths out front of consumer goods pricing.

Table 1: Canada Industrial Product Price Index (IPPI) and
Raw Materials Price Index (RMPI) Results
% Change in the July 2017 Index from:

3 Years 1 Year 6 Months 3 Months 1 Month
Ago Ago Ago Ago Ago
Type of Construction Indices:
Residential 11.4% 3.2% 1.9% -0.7% -0.6%
Non-residential Building 6.8% 2.9% 0.7% -0.1% -0.3%
Engineering/Civil -0.7% 4.1% 1.0% -0.4% -0.5%
Total Construction 5.6% 3.5% 1.3% -0.5% -0.5%
Key Aggregates:
Lumber and other wood products 10.5% 4.9% 3.6% 0.8% 0.5%
Primary ferrous metal products 0.7% 7.4% 5.7% 2.7% -1.2%
Primary non-ferrous metal products 4.4% -0.6% -2.0% -6.9% -4.2%
Fabricated metal products and construction materials 9.9% 2.6% 1.5% 0.0% -1.0%
Machinery and equipment (includes HVAC) 5.2% 0.5% -0.5% -0.9% -0.8%
Electrical, electronic and telecommunications 6.8% -1.0% -1.5% -2.3% -1.9%
Cement, glass, other non-metallic minerals 3.6% 2.6% 0.3% -0.1% 0.0%
Petroleum and coal products -26.5% 3.8% -6.4% -7.7% -0.3%
Chemicals and chemical products -5.4% 2.3% -3.1% -4.0% -2.9%
Construction Inputs:
Softwood lumber (spruce-pine-fir) 14.1% 6.8% 8.4% -2.0% 1.2%
Veneer and plywood 17.5% 12.1% 13.0% 5.3% 2.5%
Waferboard and particle board 29.6% 16.8% 5.5% 3.2% 4.0%
Shakes and shingles and wood siding 6.4% 6.9% 3.3% 1.9% 0.0%
Wood windows and doors 6.2% 0.3% 0.5% 0.3% 0.0%
Glass and glass products (except automotive) 8.3% -0.5% -0.5% -0.1% 0.0%
Ready-mix concrete 3.3% 5.3% 0.7% -0.2% 0.0%
Clay products (brick) 9.7% 0.7% 1.1% -0.9% -0.9%
Fabricated structural metal 11.7% 2.4% 1.0% 0.0% -0.7%
Prefabricated metal buildings 26.7% 0.4% -3.2% -6.1% -3.5%
Metal windows and doors 10.9% 3.1% 5.1% 0.0% 0.0%
Metal roofing 12.5% 7.3% 6.4% 0.0% 0.0%
Bolts, nuts, screws, washers, fasteners 13.1% 0.3% -0.4% 0.0% 0.0%
Hardware 11.7% 0.2% 0.2% 0.6% -1.7%
Plastic pipe fittings 13.5% -0.1% 0.0% 0.0% 0.0%
Plastic plumbing fixtures 9.6% 4.2% 1.3% -0.3% -0.7%
Electric lamps, lighting fixtures -1.7% -0.1% 0.5% 0.5% 0.0%
Concrete pipes and fittings -5.7% -3.0% -2.6% -0.6% -0.5%
Asphalt -24.7% 5.5% 17.6% 7.3% -4.7%
Gasoline (regular) -26.6% 5.7% -2.7% -7.0% 0.4%
Diesel fuel -29.1% 2.1% -11.5% -10.8% 0.6%
Natural gas -23.0% 12.4% 1.3% 1.3% 1.3%
Gypsum 32.0% 6.9% 1.8% -5.4% -4.0%
Iron ore -16.7% 15.5% -18.6% -8.9% 12.2%
Stone 6.0% 5.1% 1.5% 0.0% 0.0%

Data source: Statistics Canada (Cansim Tables 329-0075, 329-0076 and 330-0008).
Table: ConstructConnect.

Graph 1: Glass and Glass Products Price Index – Canada

Glass and Glass Products Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 2: Softwood Lumber Price Index – Canada

Softwood Lumber Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 3: Veneer and Plywood Price Index – Canada

Veneer and Plywood Price Index - U.S.

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 4: Waferboard and Particle Board Price Index – Canada

Waferboard and Particle Board Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 5: Ready-mix Concrete Price Index – Canada

Ready-mix Concrete Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 6: Fabricated Structural Metal Price Index – Canada

Fabricated Structural Metal Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 7: Prefabricated Metal Buildings Price Index – Canada

Prefabricated Metal Buildings Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 8: Asphalt Price Index – Canada

Asphalt Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 9: Diesel Fuel Price Index – Canada

Asphalt Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 10: Gypsum Price Index – Canada

Gypsum Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

Graph 11: Iron Ore Price Index – Canada

Iron Ore Price Index - Canada

The last data point is July 2017.

Data sources: Statistics Canada (Industrial Product Price Index and Raw Materials Price Index series – IPPI & RMPI) (Cansim Tables 329-0075, 329-0076 and 330-0008).
Chart: ConstructConnect.

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