Xactware Industry Trends for 2nd Quarter 2020
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, Xactware conducts hundreds of thousands of industry surveys, and reviews more than 100 million 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 Xactware to provide a comprehensive report of important industry trends.
Material costs are highly variable and are sometimes impacted by factors such as fuel costs, changes to industry practices, or natural disasters. Xactware closely monitors a wide variety of material costs across the country to ensure its price lists reflect any recent changes to pricing.
In the first quarter of 2020, Xactware observed cost increases to the six key material categories tracked in this report. However, lumber material costs, which increased 0.84 percent over the quarter, showed a decrease of 1.52 percent since April 2019. Other significant annual trends occurred in the material costs of paint and interior trim which increased 6.42 percent and 5.82 percent respectively in the last year.
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 2.5 percent cost increase in the first quarter of 2020 and 3.55 percent cost increase since April 2019.
Xactware’s Pricing Data Services team also surveys thousands of contractors across the country each month to determine what they charge for labor. The most significant change observed in key labor categories occurred in the labor cost of a drywall installer and finisher, which increased 4.48 percent over the first quarter of 2020 and 12.27 percent since April 2019.
The Retail Labor Index report tracks a combination of several common trades, including floor covering, painting, and roofing. In the first quarter of 2020, the index showed a 1.97 percent cost increase. Between April 2019 and April 2020, the index showed a 5.62 percent cost increase.
However, 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 plasterer which increased 5.36 percent since January.
The combined labor and material report is based on monthly building cost data published by Xactware. It comprises a set of commonly used items and may be used as an indicator of trends within the marketplace. The combination of labor and materials makes up the majority of Xactware price list items. Tracking the percent change for the cost of these items provides a good gauge of the general market.
The Combined Labor and Materials report showed a cost increase of 1.92 percent in the first quarter of 2020 and a 4.45 percent increase since April 2019.
Fuel costs are extremely volatile and are a factor in item pricing. Low oil prices can push down the price of some raw materials. During the first quarter of 2020, fuel costs decreased 22.23 percent, and they decreased by 25.49 percent since April 2019.
Xactware’s Pricing Data Services carefully tracks fuel costs to ensure accurate pricing.
Where to Learn More
Annual Property Report
Xactware publishes annual property reports that focus on key trends during the previous calendar year. To order Xactware’s Property Report for the United States or Canada, please visit the Xactware Online Store.
Industry Trend Reports
Using Industry Trend Reports, Xactware 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 Xactware’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 Xactware’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.