Canada Construction Materials Costs: Nov 2015

Canada Construction Materials Costs: Nov 2015

Similar to the US, the price advances of many materials and building products going into the construction process in Canada remain restrained in November 2015, said Alex Carrick of Daily Commercial News Friday.

The 0.3 per cent increase year-over-year for total construction costs does, how- ever, incorporate considerable variation at the type-of-structure sub-category level. Softwood lumber prices in Canada rose rapidly throughout 2012, but over the past three years, they have stayed mainly flat.

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Canada Construction Materials Costs: November 2015

Similar to the US, the price advances of many materials and building products going into the construction pro- cess in Canada remain restrained, said Alex Carrick of Daily Commercial News Friday.

For November 2015, a sizable gain in non-residential building material costs (+3.6% compared to November 2014), plus a mid-range increase in residential costs (+2.2%), are being offset by a significant decline in engineering/civil costs (-3.2%).

The divergent performances result primarily from:
1) demand/supply factors driven by activity levels in each of the three main type-of-structure sub-categories; and,

2) different weightings of material inputs to build houses versus office buildings versus roads and high- ways.

The material composition of residential construction has a large forestry component, although domes- tic lumber prices are also affected by housing starts south of the border.

Non-residential building material costs, on the other hand, are influenced by different framing materials, cement/concrete and steel. The latter material, weld- ed and/or sized to form structural shapes, is often imported.

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Waferboard and Particle Board

Waferboard and particle board prices are currently be- low their starting point in the chart, January 2010. The cost of these products can be kept so low because there are multiple sources of the wood shavings and chips that are compacted and compressed into sheets.

Lower-quality woods will serve the purpose as well as more expensive hardwoods and evergreens.

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