Contractors and builders primed for more materials rises
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The construction industry has been hit with waves of price rises over the past year with steel and timber leading the way with shocking price rises only now to be told to brace themselves for a fresh wave because of the rise in energy costs.
The HGV haulage crisis has exagreated the price rises any many experts have warned not to expect any improvement in the shortage of HGV drivers until the first quarter of 2022 at the earliest.
The Construction Leadership Council’s Product Availability working group have warned that we are unlikely to see any major improvements soon this with the rise in energy costs will rise the price of insulation, concrete, blocks and any other industry heavy materials.
Peter Caplehorn, CEO of the Construction Products Association and John Newcomb, CEO of the Builders Merchants Federation said that while product supply has improved in some areas, many critical challenges remained, particularly around logistics and related labour shortages, and rising product and input costs.
They commented saying that: “There are also warnings that high gas and electricity costs and associated carbon costs, which are impacting both UK and overseas ‘heavy-side’ manufacturers, will soon lead to significant price increases for ceramic products, glass, steel and bricks,” they said in a joint statement.
“Cement supply, for example, though struggling is holding steady; however, prices are likely to increase over the next few months due to increased energy costs.
“This will also have a knock-on effect on the price of concrete products.”