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 more than 100 million 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.
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 2020, Xactware observed cost increases to the six key material categories tracked in this report. Due to a focused survey during the second quarter of 2020, carpet material costs increased 5.05 percent over the quarter and 5.05 percent since July 2019.
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 0.72 percent cost increase in the second quarter of 2020 and 3.92 percent cost increase since July 2019.
Xactware’s Pricing Data Services team also surveys thousands of contractors across the country each month to determine what they charge for labor. The most significant change observed in key labor categories occurred in the labor cost of a drywall installer and finisher, which increased 3.57 percent over the second quarter of 2020 and 13.06 percent since July 2019.
The Retail Labor Index report tracks a combination of several common trades, including floor covering, painting, and roofing. In the second quarter of 2020, the index showed a 2.05 percent cost increase. Between July 2019 and July 2020, the index showed a 6.4 percent cost increase.
However, the individual trades that contribute to the Retail Labor Index varied in their percent change over the quarter. The most significant quarterly change occurred in the labor cost of a plasterer which increased 13.4 percent since April.
The combined labor and material 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 labor and materials makes up the majority of Xactware price list items. Tracking the percent change for the cost of these items provides a good gauge of the general market.
The Combined Labor and Materials report showed a cost increase of 0.83 percent in the second quarter of 2020 and a 4.43 percent increase since July 2019.
Fuel costs are extremely volatile and are a factor in item pricing. Low oil prices can push down the price of some raw materials. During the second quarter of 2020, fuel costs increased 6.18 percent, and have decreased by 19.78 percent since July 2019.
Xactware’s Pricing Data Services carefully tracks fuel costs to ensure accurate pricing.
Due to the current impacts of COVID-19, Xactware is closely monitoring the cost of personal protective equipment (PPE). Since March 2020, the average national cost of PPE items increased 43 percent. We will continue to monitor this situation and report changes as they arise.
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 the United States or Canada, 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 labor 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 the United States and will vary from local prices.
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