Supplier Insider is a weekly roundup of the latest news and insights relevant to construction suppliers.
US construction cost skyrockets per PPI data
The producer price index (PPI) calculated by the Bureau of Labor Statistics reports skyrocketing values for various commodities in construction. Construct Connect
- Asphalt increases by +28% in year-over-year (y/y) price in April. Steel bars also increased by +9.6% while heating equipment soared by +6.8%.
- Steel pipes, paints and architectural coatings also increased by +6.2%, and construction machinery and equipment saw the same price hike at +5.7%.
- Materials on the downward trend include iron scrap at -15.7%, softwood lumber at -12.6%, and gypsum at -6.1%.
Roofing accessory market may reach $6.5 billion in 2023
The Freedonia Group forecasts a 3.6% annual increase in the demand for roofing accessories, which could lead to a $6.5 billion value by 2023. Builder
- Roofing accessories in the forecast include roofing underlayment, fasteners, compounds, flashing, and cover boards.
- Roofing underlayment is projected to have a 5% annual demand increase through 2023, which outpaces the trend for other roofing accessories.
- Roofing underlayment is set to benefit from the increase in roofing activity due to the implementation of stricter building codes and rising installations of low-slope metal roofing.
Canada appeals ruling on US lumber duties
An official from the World Trade Organization (WTO) said that Canada has filed an appeal against an earlier WTO ruling on USA’s “zeroing” when calculating anti-dumping tariffs on lumber. .Reuters
- US duties on Canadian softwood lumber are “unfair and unwarranted” according to Foreign Minister Chrystia Freeland, who has already announced Ottawa’s intention to appeal the ruling.
- WTO ruled in a 2017 lumber case that “zeroing” was permissible in calculating anti-dumping tariffs.
- Zeroing refers to the method of calculating tariffs by comparing the domestic price of the product with the US import price after applying the adjustments on transportation and handling costs.