North America

THINGS WE WILL SEE IN THE 1st Q OF 2023:

USA, CANADA, and MEXICO are forecast to see between 1.9% and 2.9% GDP growth in 2023, a lower growth rate than previous years.

Construction inflation/escalation in the USA is between  7.5% and 7.8%, and Canada is seeing between 6.7% and 7.2% – an 18-year high. Mexico is seeing between 7.7% and 8.4% – a 20-year high. This could be a problem as we transition into 2023.

Construction-related materials such as copper (cable/pipe), structural steel, rebar, piping (PVC, CS, and SS), lumber, and plywood costs are starting to stabilize as we move into 2023. These bulk materials are, however, 7.5% to 15% more expensive than a year ago.

More than 75% of US, Canadian and Mexican contractors have experienced delays in obtaining construction materials and, in many cases, have paid premiums to procure them. Plywood/OSB, roofing, rebar, steel products, plumbing/electrical components, and other basic construction materials remain in short supply in all 3 countries. Some materials are showing signs of declining by as much as 15%.