Drywall price spike may impact Fort McMurray rebuild, contractors say

Contractors warn Alberta is about to see a spike in home construction costs that could make it more expensive forFort McMurrayresidents to rebuildtheir homes.

David Campbell, vice-president of operations for Empire Drywall, saidthe price of drywall has jumped by 50 per cent in the last week.

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Campbell and other local contractors in Fort McMurray areconcernedabout how the price surge will impact home construction in the fire-ravaged city.

"Every home that is rebuilt here is going to have to have drywall," said J. Paul McLeod, owner of Vancon Services, a construction company.

Last week, in a preliminary ruling,the Canadian Border Services Agency announced it would impose an import tax or tariff on most gypsum board coming from the U.S.

The Canadian government imposed duties of up to 276 per cent on drywall imported from the U.S. in an effort to help Canadian producers.

In its preliminary statement of reasons, the CBSA said it found "evidence that gypsum board originating in or exported from the U.S., imported into Canada ... has been dumped," meaning the products are being sold below normal prices.

We need to think really clearly about how these sorts of decisions... are going to impact people.- J PaulMcLeod

Though most Fort McMurray residentshave not begun rebuilding their homes, McLeod is worried about the impact higher drywall costs will have on owners who must relyon insurance payouts.

"We need to think really clearly about how these sorts of decisions, that are made a very far way away from here in Ottawa, are going to impact people," McLeod said.

Campbell said the ruling impacts many drywallers, who often sign fixed contracts with builders and will now have to absorb the increased costs, which could rise as high as 270 per cent.

"For us, it could be devastating, we're a fairly large contractor in Alberta," Campbell said.

If prices continue to climb,companieslike his will eventually pass the increases on to consumers .

Both Campbell and McLeod are calling on the federal government to intervene.

Campbell said he and others in the construction industry have written letters and are lobbying the government.