View the most recent version.

Industrial Product Price Index, Selected Construction Materials Series

(See table 2 )

In the first quarter of 2007, the four largest quarterly price changes amongst the more important commodities used in construction were a decline for insulated wire and cable, not exceeding 1000 volts, (-5.1%) and increases for particle-board and wafer-board (+3.6%), lumber, sawmill and other wood products (+3.3%) and plywood from Douglas fir (+3.2%).

The price of for insulated wire and cable, not exceeding 1000 volts suffered a continuing, but slower, decline throughout the first quarter. It has been moving down since its peak in August 2006. The price of particle-board and wafer-board was stable in January, after declines in the previous quarter. It then rose in February and March. For lumber, sawmill and other wood products, the 3.3% price increase for the quarter was mostly due to the increase in January. Prices actually declined slight in February and March. The pattern for softwood plywood from Douglas Fir was similar to that for lumber. The increase for the quarter was due to an increase in January, with February and March seeing declines.

The four largest year-over-year changes were a decline for particle-board and wafer-board (-35.3%) and increases for metal roofing and siding (+7.9%), concrete reinforcing bars (+4.9%) and insulated wire and cable, not exceeding 1000 volts (+4.7%)

The year-over-year change in the price level of particle-board and wafer-board continued its decline in the first quarter, dropping to 35.3% from 41.1% in the fourth quarter. The year-over-year change has tended to decline since reaching a peak in October 2005. Throughout the fourth quarter of 2006 and the first quarter of 2007, prices for this commodity were about half their peak level of October 2005.

The year-over-year change in the price of metal roofing and siding ceased its increase and declined to 7.9% from 8.5% in the fourth quarter. However, the actual price level has been unchanged since July 2006 and the only two months to show a notable increase in 2006 were March and June.

The year-over-year change in the price of concrete reinforcing bars increased, rising to 4.9% in the first quarter from 2.7% in the fourth quarter. The year-over-year change has been tending to increase since the fourth quarter of 2005.

The year-over-year change in the price of insulated wire and cable, not exceeding 1000 volts continued its rapid decline, dropping to 4.7% from 14.5% in the fourth quarter. It peaked at 31.4% in the third quarter of 2006. The actual price level declined marginally in all three months of the first quarter. World demand for copper has been strong for some time but Canadian prices for copper and copper alloy in their primary forms, according to the Industrial Product Price Index, actually declined sharply in January though they recovered to above their December 2006 level by March 2007. The strong increase in March has been attributed to rising demand in China.

Construction Union Wage Rates Index

(See table 3 )

In the first quarter of 2007 the Canada Total Construction Union Wage Rates Index (including supplements) increased 0.1% to 138.1(1992=100) compared with the previous quarter, and was 2.0% higher compared with the first quarter of 2006.

On a regional basis, the index for the Prairie Region registered the highest quarterly change (+0.3%) followed by the Atlantic Region (+0.1%). The Quebec Region, the Ontario Region as well as the British Columbia Region remained unchanged from the previous quarter.

New Housing Price Index

(See table 5 )

The New Housing Price Index (1997=100) rose 1.0% in the first quarter of 2007 down from the previous quarter increase of 1.4%. This was the smallest quarterly increase since the first quarter of 2005. Prices rose across the country with the Prairie Region continuing to lead with 2.5%, followed by Quebec (+1.5%), Ontario (+0.4%), British Columbia (+0.3%) and the Atlantic Region (+0.2%).

In the Prairie Region, Regina (+6.0%) led the way followed by Saskatoon (+5.5%), Edmonton (+4.3%), Winnipeg (+1.6 %) and Calgary (+1.0 %). The healthy economy in all of the Prairie Provinces created upward pressure on prices. Building materials and labour costs helped to push up prices. Strong demand for housing added to the upward pressure.

In British Columbia, Vancouver (+0.3%) and Victoria (+0.2%) both registered increases. Home builders in both markets cited a healthy housing market as the main factor for the price increases. In Victoria, increases in land prices were also a factor.

In Quebec, both Québec City (+1.8%) and Montréal (+1.3%) registered increases. Strong demand, higher prices for building materials, labour and land were the main factors in both cities.

Prices rose in all but two of the metropolitan areas surveyed in Ontario. Favourable market conditions along with higher prices for labour and building materials were among the reasons for the increases. Greater Sudbury and Thunder Bay, Toronto and Oshawa, and Hamilton cited land increases. St. Catharines-Niagara (+1.1%), Hamilton (+1.1%), and Greater Sudbury and Thunder Bay (+0.8%) registered the highest increases followed by Toronto and Oshawa (+0.4%), London (+0.3%) and Kitchener (+0.1%). Windsor showed a decrease of (-0.8%) due mostly to a soft market. Ottawa-Gatineau showed no change.

Market factors and moderately labour rates combined to produce a quarterly gain in the Atlantic Region. Higher land values were cited in St. John’s. St. John’s (+0.4%) had the largest increase followed by Halifax (+0.2%). Charlottetown showed no change while Saint John, Fredericton and Moncton registered the only decrease in the region (-0.4%).

Apartment Building Construction Price Index

(See table 6 )

The composite price index for apartment building construction (1997=100) was 149.3 in the first quarter, up 1.4% from the previous quarter and up 9.9% from the first quarter of 2006. The quarterly increase was mostly the result of higher labour and materials costs and a strong market for building construction, particularly in Western Canada. Also, for the second quarter in a row, the year-to-year advance was the largest since the index was first published in the first quarter of 1988.

Western Canada recorded the highest quarterly changes, led by Calgary (+3.5%), followed by Edmonton (+2.8%) and Vancouver (+2.0%). Lower price increases were measured in Eastern Canada with a 1.1% advance in Toronto followed by Ottawa–Gatineau (Ontario part) (+1.0%), Halifax (+0.9%) and Montréal (+0.1%).

Calgary experienced the highest gain from the first quarter of 2006 (+24.3%), followed by Edmonton (+20.6%), Vancouver (+16.5%), Toronto (+6.3%), Ottawa–Gatineau (Ontario part) (+5.4%), Halifax (+5.1%) and Montréal (+2.9%).

Non-residential Building Construction Price Index

(See table 7 )

The composite price index for non-residential building construction increased 2.0% from the previous quarter to 152.4 (1997=100) in the first quarter, up 10.0% from the first quarter of 2006. The 2.0% increase was mostly the result of higher labour and material costs and the persistent strength of the non-residential building construction market, particularly in Western Canada.

Western Canada recorded the highest increases from the fourth quarter of 2006 with Calgary posting a 3.9% increase, followed by Edmonton (+3.3%) and Vancouver (+2.2%). Smaller upward movements were recorded in Eastern Canada with Ottawa–Gatineau, Ontario part (+1.8%), followed by Toronto (+1.7%), Halifax (+1.5%) and Montréal (+0.2%).

Calgary also had the largest change (+21.3%) from the first quarter of 2006, followed by Edmonton (+18.5%), Vancouver (+13.8%), Toronto (+6.9%), Ottawa–Gatineau, Ontario part (+6.8%), Halifax (+5.3%) and Montréal (+2.6%).

Machinery and Equipment Price Index

(See table 8 )

The Machinery and equipment price index (MEPI) stood at 93.3 (1997=100) in the first quarter, up 2.3% from the previous quarter. The import component index rose 3.5%, while the domestic index edged up 0.3%. Compared to the first quarter of 2006, the total MEPI was up 1.9%, the import index increasing by 3.3%, while the domestic index declined 0.6%.

In the first quarter, all industries recorded increases in prices of machinery and equipment purchased. Manufacturing industries (+2.9%) contributed significantly to the total MEPI quarterly increase. Among its subcomponents, the largest contributors in the quarterly increase were paper manufacturing (+3.1%), transportation equipment manufacturing (+2.9%) and primary metal and fabricated metal product manufacturing (+2.7%). The second largest contributor to the total quarterly increase was finance, insurance and real estate (+1.5%), with its finance and insurance sector also rising 1.5%.

Among commodities, price increases for other industry-specific machinery (+3.6%) and trucks, road tractors and chassis (+3.4%) were the largest contributors to the quarterly increase.

The US dollar appreciated 2.8% against its Canadian counterpart in the first quarter of 2007. The strengthening of the US dollar has an upward affect on the price movements of imported goods.

Electric Utility Construction Price Index

(See table 9 )

Annual 2005 (final) and annual 2006 (preliminary)

Construction costs for distribution systems rose 6.7% in 2006. The increase in the material component for this period (+12.4%) was the major contributor to this change. The final 2005 data for distribution systems represented an advance of 1.9% over 2004.

Construction costs for the transmission line system series rose 3.4% in 2006 compared with the 1.5% increase for all of 2005. The transmission line component climbed 4.3% during the same period in 2006, while in 2005, there was a 1.1% annual gain. The rise in materials (+7.0%) significantly contributed to this increase. The substation component rose 2.8% in 2006, following a 1.8% increase the previous year. The station equipment subcomponent (+2.9%) posted the largest gain.

Consulting Engineering Services Price Index (CEPI)

(See table 10 )

The Consulting Engineering Services Price Index (CESPI) is now available for 2005. The CESPI measures the change in the total price of engineering and consulting services, as well as changes in the wage rate and realized net multiplier components. Detailed indexes are available for fields of specialization and for regional, domestic and foreign markets.

The Canada total CESPI for 2005 was 122.9 (1997=100), up 4.1% from the revised index of 118.1 for 2004.

Infrastructure Construction Price Index

An analytical price index series measuring annual changes in the cost of municipal infrastructure construction funded by development charges has been developed by Statistics Canada on behalf of the City of Ottawa. The annual index for 2006 was 119.5 (2001 =100), an increase of 5.9% over the revised annual index of 112.8 for 2005. The annual indexes for 2004, 2003 and 2002 were 107.7, 105.1 and 102.2 respectively as previously published.