Verisk Industry Trends for January 2023

January General Updates

Pricing research for the January 2023 publication shows that average costs for labor and materials in the United States in claims and remodeling increased in key pricing components.  Since January 2022, the Drywall Material report showed the largest increase of 13.59 percent in the United States, while the 30-yr. Laminated Shingle Labor and Material report increased 11.96 percent.  In Canada, the 30-yr. Laminated Shingle Labor and Material report showed the largest increase of 13.99 percent, while the Retail Labor Rates had the next largest increase at 9.35 percent and the Drywall Material increased 8.32 percent. 

Since our December 2022 publication, the Drywall Material report showed the largest increase of 1.74 percent in the United States.  The 30-yr. Laminated Shingle Labor and Material report increased 0.83 percent, and the Retail Labor Rates increased 0.82 percent in Canada. The Common Lumber Material continued to drop, decreasing 2.80 percent in the United States and 2.42 percent in Canada since December 2022.

All reported percent changes are based on the averages that have been reported since either the December 2022 price list publication or from January 2022 to January 2023.  The information reported here is based on a national average, and it is important to note that actual changes will vary within each pricing market.  It is also important to remember that Verisk’s published pricing information is based on recently completed surveys and estimate transactions.

For more information about these trends over a longer period of time, read the Quarterly Pricing Trends or the Annual Property Report.

Lumber Trend

Since January 2022, lumber prices have decreased 5.13 percent in the United States and 4.69 percent in Canada.  Sheathing materials have followed a similar trend, showing a decrease of 8.52 percent in the United States and 8.50 percent in Canada since January 2022. 

Local Market Conditions

Verisk makes every effort to ensure pricing information contained in this update represents market costs at the time of publication.  Since actual market prices can vary and change rapidly, and many factors can affect the cost of a project (including, but not limited to: labor, equipment, and material costs as well as the rates and application of sales tax), we strongly recommend customers monitor their local markets for any such changes and adjust their estimate pricing as deemed appropriate.

Gasoline Prices in the United States and Canada

Since the December 2022 publication, gasoline prices decreased 12.54 percent in the United States and 8.60 percent in Canada.  When compared to January 2022, gasoline prices have decreased 5.60 percent in the United States and increased 0.50 percent in Canada.    

Because gasoline prices can change rapidly, Verisk recommends estimators monitor their local costs to determine whether repair or construction costs are affected.  For further details, see the United States Department of Energy website.   

                                                                                                * Canada prices are per liter

Year over year fuel cost changes are now negative in the United States; this is the first time this has occurred since February 1^st 2021. Year over year costs in Canada are now close to zero, a level not seen since January 26^th 2021. From 2021 to 2023 gasoline peaked at an increase of 63 percent in the United States and 65 percent in Canada.

Top 200 Items Trend

The Top 200 Items by Total Spend increased 0.35 percent in the United States and 0.16 percent in Canada since the December 2022 price list publication.  An increase of 11.28 percent was shown in the United States and 12.33 percent in Canada since the January 2022 price list publication.

The Top 200 Items by Total Use increased 0.43 percent in the United States and 0.46 percent in Canada since the December 2022 price list publication.  An increase of 9.86 percent was shown in the United States and 10.26 percent in Canada since the January 2022 price list publication.

The Top Items by Use represents the items that were the most used in claims coming through our system and the Top Items by Spend represents the items that had the highest total spend.

XactContents Pricing Update

Since the last price list update, the XactContents pricing team continued to improve the master item list in both the United States and Canada.  The contents team have added Overstock as a new vendor in Canada.

United States

Canada

Changes to the January Price List

• EXC (Excavation) - Item added for snow/safety fence.
• HMR (Hazardous Material Remediation) - Add-on item added for confined space blasting.
• WTR (Water Extraction & Remediation) - Add on item added for confined space blasting.

Customers can view price list modifications on the eService Center.  XactAnalysis customers can see this same report by selecting the Price List Changes report in the Industry Trend Reports.   

Pricing Feedback

Pricing feedback is one of the ways Verisk ensures that the reported cost information reflects actual market prices.  Estimators are encouraged to mark their estimates complete for program and non-program work to provide their pricing feedback information within Xactimate, XactRemodel, or XactPRM.  Visit our web page for more information about submitting pricing feedback or check out our Xpert Tip on how to submit feedback in Xactimate.

More Information

Verisk’s pricing database is the foundation for many of our products.  You can download a price list in Xactimate and XactRemodel, or assign a price list in XactPRM.   

For more information about managing price lists, click Help in any Verisk product.