Verisk Industry Trends for 3rd Quarter 2022
Verisk'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, 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 - 3rd Quarter
Fuel cost increases were included in the Retail Labor Rates for the July 2022 publication. The Retail Labor Rates were increased a minimum of $0.40 per hour based on the national average increase of fuel between May 23, 2022 and June 13, 2022. More detailed information can be found in the following news release: Gasoline Price Increases for USA and Canada.
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 second quarter of 2022, Verisk observed changes in six key material categories. Lumber Material had the largest quarterly change, showing a decrease of 18.98 percent. Lumber Material also had the largest annual decrease of 28.05 percent since July 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 3.06 percent cost decrease in the second quarter of 2022 and an 0.82 percent cost decrease since July 2021.
Labor
Verisk’s Pricing Data Services team also surveys thousands of contractors across the country each month to determine what they charge for labor. The labor cost of a Flooring Installer had the largest quarterly percent change with a 2.76 percent increase, while the Siding Installer had the highest annual change with a 15.05 percent increase.
The Retail Labor Index report tracks a combination of several common trades, including floor covering, painting, and roofing. In the second quarter of 2022, the index showed a 1.80 percent cost increase, and since July 2021 the index showed a 9. percent cost increase.
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 Cleaning Technician which increased 3.07 percent since April 2022.
Combined Trends
The Combined Labor 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. This combination of labor and materials makes up the majority of Verisk price list items. Tracking the percent change for the cost of these items provides a valuable gauge of the general market.
The Combined Labor and Materials report showed a decrease of 0.58 percent in the second quarter of 2022 and a 4.36 percent increase since July 2021.
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 costs increased 12.76 percent over the second quarter of 2022 and have increased by 52.82 percent since July 2021. Verisk’s Pricing Data Services carefully tracks fuel costs to ensure accurate pricing.
Lumber
Since July 2021, lumber prices have decreased by 28.05 percent. During the second quarter of 2022 lumber prices have continued to decrease, showing a downward trend of 18.98 percent. Sheathing materials have also decreased 24.01 percent from April 2022 to July 2022.
The Basket of Goods reports are also a good indicator of the impact that lumber costs have had on market pricing. Since July 2021, the Basket of Goods Labor & Material report has shown an increase of 4.36 percent. When framing components are removed from this basket of goods, the report shows an increase of 9.71 percent.
Since July 2021, the Basket of Goods Material report has shown a decrease of 0.82 percent. When framing components are removed from this basket of goods, the report shows an increase of 9.99 percent.
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 the United States or Canada, 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 labor 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 the United States and will vary from local prices.