🌴 Inflation vacation

Together with

Good morning! What an epic weekend. The Kansas City Chiefs won the Super bowl and Rihanna announced her second pregnancy. But I think the question we are all wondering is this: what was the best commercial?

We had a soft spot for the GM and Netflix crossover to promote electric vehicles. Canada is in the midst of a massive effort to increase the share of EVs and move away from fossil fuels. And who doesn’t love Will Ferrell?

And speaking of love, Happy Valentine’s day❤️! In addition to your sweetie, moderating material prices might just warm your heart. Keep scrolling to find out why.

- Russell Hixson, editor

MARKETS

*Stock data as of last market close; currency, oil and crypto data as of 10:00 PM ET February 13th, 2023.

Economy: Canada’s employment remains hotter than expected, despite a series of interest rate hikes from the Bank of Canada. The economy added 150,000 jobs in January while the unemployment rate held steady at 5%, near a record low, Statistics Canada reported. Employment increased in five provinces, including Ontario, Quebec and Alberta, and was up in six industries, led by wholesale and retail trade.

THE BIG STORY

Material prices expected to ease

With challenges like supply chain disruptions, skilled labour shortages and increasing building material costs, it’s no secret that construction is getting more and more expensive. But 2023 could bring Canadian builders some relief after a challenging 2022.

Rearview mirror: Statistics Canada’s recent recap of 2022 shows that supply chain disruptions that started during the COVID-19 pandemic continued to impact the construction industry, alongside higher fuel prices. While lumber prices declined in the second half of the year, the wood, plastics and composites division recorded one of the largest year-over-year increases. This increase, along with the growth in prices of structural steel framing, concrete and metal fabrications, led to the rise in construction material costs.

Looking ahead: Real estate services provider MLA Canada stated that over the next few months, costs are expected to ease, providing additional comfort around pricing and underwriting in the coming months.

Here is global construction consultant Linesight’s latest forecast for materials:

• Lumber — Prices are trending slightly downward as demand has remained subdued. Linesight noted that due to a high dependence on U.S. exports, costs are linked to the U.S. housing market, which is facing a prolonged downturn.

• Cement and aggregates — While hauler strikes and a shutdown of major plants due to fires added to supply tightness in mid to late 2022, supply has gradually recovered and stocks have been replenished.

• Steel — With supply-side issues easing and inventories now stable, demand-side uncertainty has been the key driver behind price weakness.

Don’t call it a comeback: Reporting from Real Estate News Exchange shows industry experts don’t expect a significant drop anytime soon. At a recent panel for the Urban Land Institute of Ontario, officials stated that while prices are moderating, they are still far above long-term averages.

TOGETHER WITH SITEMAX

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NEED TO KNOW

The week's headlines

🚨 Turkish officials have detained or issued arrest warrants for dozens allegedly involved in shoddy and illegal construction methods. The country was hit by a devastating earthquake that caused thousands of buildings to collapse.

💰 Legal filings show B.C. condo tower developer Coromandel Properties Ltd. is facing financial turmoil following high-interest rates. The company has filed for creditor protection, claiming the interest rates paired with slow approvals in Metro Vancouver have made it difficult to service its $700 million in debt. The debt stems from the purchase of 16 groups of properties between 2016 and 2021.

📺 There’s a new way for youngsters to learn about construction. Spin Master and Corus Entertainment have premiered Rubble & Crew on Corus’ top kids' networks Treehouse and STACKTV. The show is a spin-off series from the preschool franchise PAW Patrol that follows the adventures of fan-favourite English bulldog Rubble and his construction crew family.

🌪️ Devastating tornadoes have become more and more common for areas like southern Ontario, southern Quebec, and the southern Prairies. This has caused many to call for building codes to address this with requirements for things like hurricane straps or stronger types of screws.

PROJECT SPOTLIGHT

Innovation centre design showcases concrete

The tower with a twist: Vancouver’s CURV tower wants to make history. Its architect, Tom Wright, has already earned international acclaim with the Burj Al Arab, which was a nod to the shape of a Dubai dhow, an Arab sailing vessel. In Vancouver, he is planning for the 60-storey CURV tower to be the pinnacle of the city skyline and claim the title of tallest passive house building in the world. Developed by Brivia Group and Henson Development, the project wants to be a blueprint for future high-performance buildings.

PROJECT UPDATES

Toronto Metropolitan University reveals Student Wellbeing Centre design

Aircraft hangar work underway at Ottawa International Airport

Work to begin on Granville Bridge upgrades in Vancouver

B.C. soccer stadium will be ready in less than three months

Deal reached for Oneida Energy storage project in Ontario

WHAT WE'RE TALKING ABOUT

BLOG: 👀 How does an autonomous truck see?

READ: 🏒 The Colorado Avalanche have a new construction sponsor

READ: ❤️ B.C. remembers construction icon Larry Fisher

STUDY: 🔎 Research shows impact of parent’s work on children

READ: 🥉Canada is third in the world when it comes to LEED

Here's to a great rest of the week!