Construction materials sit on the shelves of Construction Supply Ltd. (Photo Courtesy Bob Schneider)

By Gates Guarin

Cost of construction materials hammered by inflation

Jun 6, 2022 | 4:43 PM

MEDICINE HAT, AB – The latest housing market numbers from the Alberta Real Estate Association paint an unpredictable future. Figures from May 2022 show the average price for a residential home is $332,430, up 3.1 per cent from last year. In the same time frame, sales have decreased 19.3 per cent.

Inflation has caused prices to rise in every sector, with wholesale construction suppliers being no exception. Some local vendors are ready to sound the alarm.

Fabian Gale, store manager of Construction Supply Ltd. has been in the business for 20 years. He says this is the worst he has ever seen the market.

“It’s slightly alarming,” Gale says. “The retail price is going up 30 to 40, 50 per cent on certain things.”

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Solvents, metal-based consumables and lumber materials are just some of the products Gale says have had some of the highest price jumps, but the increase has hit everything he sells.

“Literally I think you could say A to Z,” Gale says. “From tools to the consumables, you name it.”

Gale says even giving construction companies accurate and timely quotes has been a struggle, as rising fuel costs and surcharges now have to be taken into account when purchasing materials.

Gale says the current market will force some companies to make difficult decisions.

“I truly think we’re at almost a breaking point,” Gale says. “I think the market can only absorb so much. There’s only so much money to go around. At the end of the day, you only have so much on your paycheque. I think right now, it’s pretty tight. Like I say, people are willing to absorb it at this point, but if it continues to go in this same path, higher and higher, they’re going to have to cut back.”

Gale says even though prices are high, demand for products has not slowed down due to the uncertainty and unpredictability of the market.