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Bouncing back from the COVID-19 pandemic, numerous factors continue to be pressing issues of concern to the construction industry.
The Inflationary Pressure Game
As policymakers and economists walk a thin line on the topic of inflation, it comes to no surprise that consumers and their wallets are feeling the economic grunt from increasing prices. Ranging from food prices, transportation costs, material price tags, labour rates and basically the price of everything, inflation is showing no signs of slowing from its upward trajectory.
Canada's January inflation rate came in at 5.1%, the highest since 1991, proving itself difficult to contain. So what does this mean for businesses and households? Unfortunately, it highlights the continuance of increasing prices as we head into the third month of 2022 -making affordability a questionable term in itself. The industry is home to approximately 1.5 million jobs nationwide as it accounts for 7% of Canada's economic activity. This being said, the construction industry has been under inflationary pressures prior to the pandemic and it has become a persisting issue at hand as we all work our way to best mitigate this storm. Across the board, our field of work is experiencing pressures from increased costs, labor shortages, supply chain bottlenecks, and strong construction demand, leading to a landscape prone to inflationary implications.
Here’s What We're Doing
Typically, our team accounts for inflation through our estimates when it is expected to remain in a relatively controlled manner year over year. Combined with global supply chain disruptions and labour shortages, we have been working with all our clients to address these areas of concern. Unlike previous periods of steady periods of price increases, we are facing ongoing pressures and are actively working to balance quality and costs in order to ensure quality projects are delivered on time.
At ROSSCLAIR, we understand that it is crucial to be transparent to everyone -this includes all project parties -as we set realistic terms and pricing outlooks for each and every project. Throughout each phase of our projects, our team identifies and communicates the important price fluctuations to our clients and contractors on a regular basis. When the price of certain material costs (i.e. steel, electrical components, glass, etc.) increases, we adjust our proposed budgets accordingly during these turbulent times. All our partners are notified in a formal manner as a part of our transparency business model.
Meanwhile, we wait for the Bank of Canada to signal interest rate hikes -if any, our company continues to take on numerous projects across the province. As the construction industry emerges from two years of the pandemic, the ROSSCLAIR team is constantly working around the clock to meet the GTA's construction needs. It is our pride to be able to revitalize different spaces and it is to no surprise that our company has been able to foster growth over our 47 years in business.