Verisk Industry Trends for 2nd Quarter 2022
Verisk Industry Trends Bulletin Key Pricing Trends
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, Verisk 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 Verisk to provide a comprehensive report of important industry trends.
Pricing News — 2022 - 2nd Quarter
Fuel cost increases were included in the Retail Labour Rates for the April 2022 publication based on the national average increase of fuel between February 28, 2022 and March 28, 2022. Retail Labour Rates for the USA were increased a minimum of $0.60 per hour and in Canada a minimum of $0.68 per hour. More detailed information can be found in the following news release: Gasoline Price Increases for USA and Canada and their impact on Verisk Pricing Data.
Materials
Material costs are highly variable and are sometimes impacted by factors such as fuel costs, changes to industry practices, or natural disasters. Verisk closely monitors a wide variety of material costs across the country to ensure its price lists reflect any recent changes to pricing.
In the first quarter of 2022, Verisk observed changes in six material categories. Lumber material had the largest quarterly change, showing an increase of 27.20 per cent. Lumber also had the largest annual increase of 27.87 per cent since April 2021.
The Material Composite Index report tracks a combination of several commonly used material components, including floor covering, paint, and roofing among others. The index showed a 5.78 per cent increase in the first quarter of 2022 and a 10.53 per cent increase since April 2021.
Labour
Verisk’s Pricing Data Services team also surveys thousands of contractors across the country each month to determine what they charge for labour. The labour cost of a Heating / A.C. Mechanic had the largest quarterly per cent change with a 4.07 per cent increase, while the labour cost of Siding Installer had the largest annual change with an 20.19 per cent increase.
The Retail Labour Index tracks a combination of several common trades, including floor covering, painting, and roofing. In the first quarter of 2022, the index showed a 2.04 per cent cost increase, and since April 2021 the index showed a 7.97 per cent cost increase.
The individual trades that contribute to the Retail Labour Index varied in their per cent change over the quarter. The most significant quarterly change occurred in the labour cost of an Ornamental Iron Installer which increased 4.60 per cent since January 2022.
Combined Trends
The Combined Labour and Materials report is based on monthly building cost data published by Verisk. 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 Verisk price list items. Tracking the per cent change for the cost of these items provides a valuable gauge of the general market.
The Combined Labour and Materials report showed an increase of 4.22 per cent in the first quarter of 2022 and a 9.20 per cent increase over the year.
Fuel Costs
Fuel costs are extremely volatile and are a factor in item pricing. High oil prices can push up the price of some raw materials. Fuel prices have increased 23.00 per cent over the first quarter of 2022 and have increased 42.90 per cent since April 2021. Verisk’s Pricing Data Services carefully tracks fuel costs to ensure accurate pricing.
Lumber
Since April 2021, lumber prices have increased by 27.87 per cent. During the first quarter of 2022 lumber prices increased 27.20 per cent. Sheathing materials have shown a similar trend and have increased 40.21 per cent from January 2022 to April 2022.
The Basket of Goods reports are also a good indicator of the impact that lumber costs have had on market pricing. Since April 2021, the Basket of Goods Labour & Material report has shown an increase of 9.20 per cent. When framing components are removed from this basket of goods, the report shows an increase of 9.05 per cent.
Since April 2021, the Basket of Goods Material report has shown an increase of 10.53 per cent. When framing components are removed from this basket of goods, the report shows an increase of 9.40 per cent.
Verisk is continually monitoring lumber materials and making warranted adjustments from focused surveys with suppliers for each monthly price list publication
Where to Learn More
Annual Property Report
Verisk publishes annual property reports that focus on key trends during the previous calendar year. To order a copy of Verisk’s Property Report for Canada or the United States, please visit the Verisk Online Store.
Industry Trend Reports
Using Industry Trend Reports, Verisk 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 Verisk’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 Verisk’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