With the release of data for July 2008, the Bureau of Labor Statistics expanded the Producer Price Index (PPI) by introducing indexes measuring the changes in output prices received by four groups of construction trade contractors performing poured concrete, roofing, electrical, and plumbing/HVAC work on nonresidential buildings. These indexes are classified under PPI-specific 2002 North American Industry Classification System (NAICS) codes.
|Nonresidential Building Work Contractor Type|
|23822X||Plumbing, heating and air-conditioning contractors|
Each of the four special trade indexes are intended to represent national average price movement for that special trade on a combination of new, nonresidential (commercial and industrial only) building construction activities and nonresidential building maintenance and repair work. These indexes exclude residential work as well as additions, renovations and non-building construction. The indexes further exclude pre-construction site preparation work, post-construction landscaping, reclamation work, architectural fees, and building design fees which are not costs incurred when erecting the structure itself.
Each of the four trade contractor indexes is created by aggregating contractor-specific data previously collected for new construction activities for the four building types (warehouses, schools, offices, and industrial buildings) with data separately collected for maintenance and repair work performed by each of the contractors. A detailed description of data collection for new construction activities can be found on the PPI Nonresidential Building Construction Sector (NRBC) Initiative webpage.
Collection of the data for maintenance and repair work utilized established PPI procedures and methodologies. Specifically, the maintenance and repair work for which respondents provide data was selected from each firm's recently completed in-scope transactions.
Table 1. Example of a Maintenance and Repair Item Description
Maintenance/Repair Job. Customer name: XYZ, Inc. Customer/Job identification number: 903246-01. Maintenance/repair identification: Scheduled repair on a Built-up Roof (BUR). Nonresidential building type: Warehouse. Size of maintained/repaired area 35,000 sq ft. Reason for service: deterioration of surface coating due to weather damage.
|Description||Rate||# of units/hours||Units/hours X rate|
|Truck surcharge||$1.10/mile||30 miles||$33.00|
|Overhead & Profit||15%||$556.20|
A survey form which includes the item description is sent out monthly to the respondent. On this form, the respondent estimates an updated price using information on current costs and current overhead and profit percentage that would be applied if the identical job were performed in the current month. The respondent is also asked to indicate if any of the characteristics of the job description are no longer offered. Changes in characteristics are evaluated and, if necessary, adjustments made in order to maintain a consistent price basis.
For further information on NAICS 23811X, 23816X, 23821X, or 23822X please contact Frank Congelio at Congelio.Frank@bls.gov or (202) 691-7712.
Last Modified Date: August 12, 2016