Canadian Electrical Wholesaler

March 1, 2017

The Non-residential Building Construction Price Index (NRBCPI) was up 0.6% in the fourth quarter compared with the previous quarter. This was the fifth consecutive quarterly increase and the largest gain since the second quarter of 2014.

Contractors reported quarterly increases in six of the seven census metropolitan areas (CMAs) surveyed. Vancouver (+1.1%) and Montréal (+0.9%) posted the largest advances, which mainly reflected higher material prices for contractors in the architectural and structural trades. The composite index for Edmonton was unchanged in the fourth quarter.

Year over year, the NRBCPI rose 1.6%, with Vancouver (+5.8%) and Toronto (+3.7%) reporting the largest increases. Edmonton (-2.6%) and Calgary (-1.9%) reported the only year-over-year declines.

How construction prices have evolved

As 2017 marks the 150th anniversary of Confederation, we take a look back at an aspect of construction prices in Canada.

Information on wholesale building material prices dates back to 1871. Data collection to produce a non-residential material input price index started in 1926. Back then, prices were collected for materials used in projects such as shipbuilding, bridge building and woodworking plants, projects that differ greatly from construction projects today.

In 1970, Statistics Canada adopted model pricing to measure the price changes of construction projects. Using this approach, representative cost components for each building model are weighted according to their relative importance, and then priced through time. These components include the costs of materials, labour and equipment, and contractors' overhead and profit.

The model approach was first applied to representative models of an office building and a high school, which were then priced in Montréal, Toronto, Ottawa and Vancouver. A light factory building was subsequently added, and the agency began to publish data for all three models as part of the NRBCPI in 1972.

Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/170214/dq170214a-eng.htm.

 

Study

Technological change has often been the cause for major market disruption. Consumers tend to benefit from these kinds of disruptions through improved service levels or radically lower prices. Wholesalers and distributors, however, have fewer means to drive changes themselves.

Part 2 of this 3-part whitepaper analyzes the disruptive character of LED (“LEDification”), smart home technology and digitalization to see how these trends have changed the behaviour and expectations of installers and contractors as the key customer group of electrical wholesalers.

Read more

 

 

 

Read more... 

 smart grid: aggregating sources

By Mark Winfield

The large-scale electrification of transportation and other energy-based services is widely seen as an important element of efforts to reduce significantly greenhouse gas emissions from the combustion of fossil fuels. Major reductions in greenhouse gas emissions will be essential to meeting the requirements of the Paris Climate Change Agreement and preventing what the Intergovernmental Panel on Climate Change has termed “dangerous” climate change.

 

 

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Copper $US Dollar price per pound

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