Some supply problems have easy off, such as bagged cement, but bricks, blocks, concrete roof tiles, timber battens, chipboard, steel lintels and PVC products are all in short supply still.
"We are not out of the woods yet, but we are just about managing" is the message from the Construction Leadership Council today.
Since shortages of construction materials became a problem in the UK recently, the Construction Leadership Council has been putting out monthly statements. They are prepared by Builders Merchants Federation chief executive John Newcomb and Construction Products Association chief executive Peter Caplehorn. They co-chairs of the Construction Leadership Council鈥檚 product availability working group and represent, respectively, distributors and manufacturers of building materials. This is their latest statement, dated 22nd September 2022:
鈥淲hile there has been a slight levelling off in construction demand, mostly in the domestic Repair, Maintenance and Improvement sector, demand remains high, with strong projections based on the anticipated pipeline of work for the rest of the year.
鈥淥verall product supply has improved slightly with lead times stabilising in some product areas. That said, certain items 鈥� timber battens, chipboard, steel lintels and PVC products 鈥� remain in short supply.
鈥淭he main concerns are around bricks and blocks, with some regions experiencing increased delays in securing supplies; concrete roof tiles, where lead times are averaging 24-30 weeks, and bagged cement.聽 There was some easing in the shortages of bulk and bagged cement in August, with additional cement brought from abroad; however, delivery has been particularly constrained by the lack of domestic haulage capacity.聽 Extended delivery times will therefore likely continue until the end of the year and some allocation will likely remain in place.
鈥淭ransport issues continue to be the most common and pressing concern across the supply chain.聽 Global shipping capacity has been reduced by 25% since the start of the pandemic, leading to delays and high container prices, and there is little sign of relief as we head into the Christmas season. The British Ports Association expects challenges to continue until at least the second quarter of 2022.
鈥淲ithin the UK, the shortage of HGV drivers is affecting every sector and will take many months to resolve, despite Government action to increase driver testing.聽 This is a major contributor to delayed deliveries in all construction product areas; one manufacturer reported 鈥榝actories piled with product that we cannot get out鈥�.
鈥淭he level of price increases for many products has moderated but this may be short-lived, due to continued pressure on costs of raw materials, labour and transport.聽 Energy prices, particularly the doubling of the wholesale cost of gas, is also a critical factor for manufacturers, along with higher carbon prices related the increased use of coal-fired power stations.聽 This is likely to be exacerbated following a fire at a power facility in Kent shutting down a crucial link between the British and French power grids.
鈥淒espite the current challenges, by working closely and collaboratively, the supply chain is just about managing under unprecedented circumstances.聽 We are not out of the woods yet.聽 While many factors could still cause disruption, we are currently in a better position than three to four months ago.鈥�
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