Verisk Industry Trends for 3rd Quarter 2018
Xactware's Pricing Data
This bulletin gives a brief overview of recent pricing trends in the property insurance, construction, and restoration industries.
As a reporter of market-specific pricing information for repairing or rebuilding structures and replacing personal property, Xactware conducts hundreds of thousands of industry surveys, and reviews millions of data points per year submitted through field estimates written by contractors and adjusters as well as electronic data feeds provided by retail merchants. This extensive library of research enables Xactware to provide a comprehensive report of important industry trends.
Pricing News — 2018 - 3rd Quarter
Materials
Material costs are highly variable and are sometimes impacted by factors such as fuel costs, changes to industry practices, or natural disasters. Xactware closely monitors a wide variety of material costs across the country to ensure its price lists reflect any recent changes to pricing.
In the second quarter of 2018, Xactware observed changes to several material categories. Carpet material costs had the largest quarterly per cent change: they increased 5.11 per cent since April. Lumber material costs had the largest annual per cent change with a 17.2 per cent increase.
The Material Composite Index report tracks a combination of several commonly used material components, including floor covering, paint, and roofing. The index showed a 1.17 per cent increase in the second quarter of 2018 and a 4.14 per cent cost increase since July 2017.
Labour
Xactware’s Pricing Data Services also surveys thousands of contractors across the country each month to determine what they are charging for labour. The most significant change occurred in the labour cost of a siding installer, which increased 3.3 per cent in the second quarter of 2018 and 7.98 per cent since July 2017.
The Retail Labour Index tracks a combination of several common trades, including floor covering, painting, and roofing among others. In the second quarter of 2018, the index showed a 1.34 per cent cost increase. Since July 2017, it showed a cost increase of 4.26 per cent.
Combined Trends
The Combined Labour and Materials report is based on monthly building cost data published by Xactware. It comprises a set of commonly used items and may be used as an indicator of trends within the marketplace. The combination of labour and materials makes up the majority of Xactware price list items. Tracking the per cent change for the cost of these items provides a good gauge of the general market.
The Combined Labour and Materials report showed a cost increase of 0.9 per cent in the second quarter of 2018 and a 3.17 per cent increase since July 2017.
Fuel Costs
Fuel costs are extremely volatile and are a factor in item pricing, since high oil prices can push up the price of some raw materials. Fuel prices increased 3.27 per cent over the second quarter of 2018 and 27.61 per cent over the last year. Xactware’s Pricing Data Services carefully tracks fuel costs to ensure accurate pricing.
Ontario Windstorms
Windstorms battered Ontario and Quebec in the beginning of May. Thousands were without power after wind gusts of close to 120 kilometers per hour. The storm had a significant impact on prices in the area.
In southern Ontario, retail labor rates for siding installation increased 10.41 per cent since the May price list publication and roofing labor rates increased 8.6 per cent. The number of estimates submitted increased 107 per cent on average since April.
When we compare the number of estimates filed each month to January, we can see a drastic increase in May. While the number of estimates decreased slightly in June, there were still 191 per cent more estimates filed in June than there were in January.
Xactware closely monitors the impact of disasters on item pricing. If needed, we will publish an interim price list to give those working in damaged areas the most accurate prices. As prices can change rapidly in the aftermath of any disaster, Xactware cannot guarantee that the prices within the published database will be adequate for any specific job. We strongly recommend that all customers monitor their local market for any such changes and adjust your estimate pricing as is appropriate.
Where to Learn More
Annual Property Report
Xactware publishes annual property reports that focus on key trends during the previous calendar year. To order a copy of Xactware’s Property Report for Canada or the United States, please visit the Xactware Online Store.
Industry Trend Reports
Using Industry Trend Reports, Xactware customers can examine pricing trends on national, state or province, and local levels for key material and labour pricing changes in multiple trades. Trends can be viewed by the month or over extended periods of time. For more information about Xactware’s Industry Trend Reports, or to receive access to them, please contact your sales representative or call 1-800-424-9228.
Pricing Methodology White Paper
For more information about Xactware’s methodology for researching and publishing pricing information, please see the Pricing Research Methodology white paper on the eService Center.
Unless otherwise stated, the values reported in this bulletin are national averages for Canada and will vary from local prices.