Canadian inflation and the construction industry

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Inflation is a real threat to Canada’s construction industry. Here’s how we can fix it. If contractors, owners and procurement agencies work together, we can manage soaring inflation.

"Transitory" “Transitory” – that was how many economists and policymakers described this period of inflation a year ago, when prices for food, fuel and just about everything else began to rise.

David McKay, CEO of Royal Bank of Canada, warned that the central bank must take “rapid action” to increase interest rates and curtail out-of-control inflation. Rising inflation puts pressure on households and businesses – we’re all experiencing that firsthand. What you might not know, however, is that inflation is uniquely challenging for Canada’s construction industry – an industry that provides more than 1.5 million jobs and generates 7.5% of the country’s economic activity.

The first step in addressing the problem, of course, is acknowledging that there is one. The construction industry needs to accept that inflation is not going away. Social unrest, issues securing silica, floods, fires – everything that’s happening in the world today – have real and potential impacts on construction costs.

 

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