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Canada No Slouch when it comes to Construction Material Cost Hikes

Alex Carrick
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 and .)

Canada No Slouch when it comes to Construction Material Cost Hikes Graphic

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 (PPI) data set calculated and published by the Bureau of Labor Statistics (BLS).

The best means to achieve Canadian equivalency is to draw on the Industrial Product Price Index (IPPI) 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 U.S. 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.

Table 1: Canadian Construction Material Costs
Based on Industrial Product Price Index (IPPI) Series from Statistics Canada
The most dramatic increases are denoted with red arrows - e.g., softwood lumber +169.4%, year over year.
Data source: Statistics Canada’s Industrial Product Price Index (IPPI) series, Table 18-10-0266-01.
Table: ÌìÃÀÓ°Ôº.

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Alex Carrick is Chief Economist for ÌìÃÀÓ°Ôº. 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. Links to his numerous articles are featured on Twitter , which has 50,000 followers.

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